Peachtree Leads $63M Debt Package for Washington State Apartments
By Andrew Coen March 25, 2025 4:44 pm
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Grandview Companies has secured a $63 million financing package for the development of a multifamily development in Western Washington, Commercial Observer has learned.
Peachtree Group originated a $28.3 million, 26-month first mortgage and 30-year $17 million Commercial Property Accessed Clean Energy (C-PACE) loan for the developers’ planned 280-unit Yorkshire Apartments project in Tumwater, Wash. Hickory CRE Lending also provided a $17.7 million mezzanine loan as part of the transaction, which was brokered by Zack Goodwin, managing partner at CapNorth.
“It is nice that Peachtree has a C-PACE arm in-house as well as their senior debt so it makes the process efficient, and then having Hickory which understands the whole part of the capital stack from a mezz perspective,” Goodwin told CO.
Goodwin added that the Yorkshire Apartments project will mark the third under multifamily tax exemption program for the City of Tumwater, since 20 percent of the units will be designated as affordable housing,
Gregory Koenig, senior vice president of commercial real estate credit at Peachtree Group, said the location of the development two miles south of Washington’s capital city, Olympia, was attractive from a lending perspective due to the demand for multifamily in the area to serve the region’s many state government jobs.
Koenig noted that the C-PACE component of the deal also enabled Grandview to lower its cost of capital.
Kyle Stein, principal at Hickory CRE Lending, said a lack of multifamily supply in western Thurston County — with no deliveries in the last 12 months and none projected over the next two years — positions the project for success. He noted that Thurston County, which is about 55 miles south of Seattle, has seen its population grow 16 percent since 2010, more than twice the national average, with projections of another 5.6 percent growth over the next five years.
Located at 555 Israel Road SW, the Yorkshire Apartments project is being developed by Grandview on a 5.1-acre section within a 21.7-acre master-planned community that will eventually include 406 apartments, 133 townhomes and 290,080 square feet of commercial space. Yorkshire Apartments will mark the first phase of the development, with completion estimated in February 2027, according to Peachtree.
Officials at Grandview Companies did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
