Koz, MSquared Obtain $48M Financing Package for Seattle Apartment Project
By Andrew Coen May 28, 2024 11:20 am
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A joint venture between Kōz Development and MSquared secured $47.9 million of construction financing to build a mixed-income multifamily development in Downtown Seattle, Commercial Observer has learned.
Goldman Sachs (GS) Alternatives’ Urban Investment Group provided a $26 million construction loan for the sponsorship’s planned Kōz in Lower Queen Anne, a 169-unit project in Seattle’s Lower Queen Anne neighborhood. The project also received equity contributions of $9.7 million from MSquared and $12.2 million from Koz.
The building will mark the second Seattle area investment that MSquared and Kōz — two women-led development platforms — have partnered on. That first is the 200-unit Kōz on Alderwood project in Lynwood, Wash., scheduled to be completed in late 2024 just over a year after securing a $35 million acquisition loan from Coastal Community Bank.
“MSquared is proud to partner with Kōz Development again to deliver long-term affordable housing to households in Downtown Seattle,” Alicia Glen, founder and managing principal at MSquared, said in a statement. “This investment exemplifies MSquared’s strategy: to develop mixed-income, sustainable housing in partnership with a women-led developer.”
Sixty-nine of the 169 units at Kōz in Lower Queen Anne will be designated as affordable housing for residents earning up to 80 percent of the area median income (AMI), according to the developers. Another 17 units will also be restricted through the Mandatory Housing Affordability Program to households earning between 40 and 60 percent of AMI.
Located at the intersection of West Republican Street and Third Avenue, the transit-oriented project is within walking distance of a light rail train station and less than a mile from Seattle’s Space Needle. The all-electric development has broken ground and is slated for completion in 2025.
“This project will fill a real need in the Seattle market, where quality housing is still unattainable for so many,” Cathy Reines, founder, CEO and board chairman of Kōz, said in a statement.
Cushman & Wakefield (CWK)’s Chris Moyer arranged the transaction.
Moyer said in a statement that the project ”will bring a higher, best use to this prime corner location that is easily accessible to many amenities and employers that are either within walking distance or a short commute away.”
Spokespeople at Goldman Sachs did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
