Canyon Partners, ACG Team Up on Seattle-Area OZ Project, Nab $46M Construction Loan
Canyon Partners Real Estate and American Capital Group (ACG) have teamed up to develop Kinect@Lynwood, a 239-unit multifamily project in the Seattle suburb of Lynnwood, the firms announced today.
The project is located in a qualified opportunity zone.
Canyon Partners provided $25 million in equity in the deal, and the joint venture also secured $45.5 million in construction financing from U.S. Bank.
As reported by the Lynnwood Times, the Lynwood City Council voted unanimously to approve the development — which will utilize the city’s Multiple-Unit Housing Tax Exemption program — at its February 10 business meeting.
Construction is now scheduled to begin in June, with project completion anticipated in the summer of 2022. When completed, Kinect@Lynwood will include a mix of studio, one-bedroom, and two-bedroom units, resident parking and numerous community areas.
“Kinect @ Lynnwood will offer new housing supply at affordable price points to the community, which we believe is critical as downtown Seattle’s affordability challenges continue to increase,” B.J. Kuula, managing partner at ACG, said in prepared remarks. “We anticipate this project’s transit-oriented location will be an attractive option for renters seeking newly-built housing with convenient access to employment centers and retail options.”
The Seattle Metropolitan Area is one of the fastest growing areas in terms of population and job growth, driving strong multifamily demand in nearby communities such as Lynnwood.
The deal marks Canyon’s fourth joint venture equity investment in an opportunity zone.