Mavik Capital Provides $180M First Mortgage for Seattle-Area Project

Commercial Observer is first to report that West Edge Development has secured a $180 million first mortgage to develop Cedarside Commons, a 516-unit housing and retail complex in Stanwood, Wash., north of Seattle. 

Mavik Capital provided the mortgage debt, which carries a three-year term and includes a one-year extension option. The entire development will cost $229 million, with the remaining $49 million of capital made up of equity from West Edge, according to Mavik Capital. 

Cedarside Commons will feature 444 apartments, 72 for-sale townhouses, and roughly 27,000 square feet of retail in the Stanwood suburb about an hour drive north of Downtown Seattle. 

The retail component is expected to include restaurants, cafes and libraries, while the broader residential development will be within a quarter mile of a high school, a middle school and two elementary schools, according to Mike Fishbein, managing director at Mavik Capital.

“The goal is to have a place to bring together people who are looking for an elevated yet affordable housing experience within a walkable community,” said Fishbein. “The project is meant to be a walkable community.”

Fishbein told CO that West Edge had purchased the land of Cedarside Commons 25 years ago and initially planned to build an industrial asset. Then came the 2008 Global Financial Crisis.  

“West Edge was figuring out the right fit for the market. This project went through a couple of iterations,” Fishbein said. “Then West Edge pivoted toward multifamily after observing the lack of housing available in the overall markets of the northern Seattle suburbs.”

Dan Cooperman, head of investments at Mavik, told CO that his firm was introduced to West Edge by a rival firm. 

“We were introduced to West Edge by one of our existing borrowers – it’s a testament to the strong relationship we built with them” he explained. CapNorth was the exclusive advisor to West Edge on the transaction, the firm confirmed. 

The project is expected to take 36 months to complete, but the first residential units will be delivered in 13 to 14 months. 

Both Cooperman and Fishbein emphasized the deep experience Mavik Capital and West Edge Development have in the Seattle region. West Edge has more than four decades of experience building in the region and currently manages a 1.6 million-square-foot portfolio across the Pacific Northwest. 

“This is a market that is probably overlooked by the other players who might participate in a $180 million capitalization of a mixed-use project,” said Cooperman. “Our familiarity with this market gave us the inside track.”

Fishbein noted that Mavik has financed five projects that delivered 500 units in various stages to the region for a total investment of $200 million over the last six years. These included both construction and development lending as well as stabilization loans. 

“The one thing we’ve been able to observe is performance — the community is supportive of construction,” he said. “The leasing demand has been there when projects deliver.”

Brian Pascus can be reached at bpascus@commercialobserver.com