Spectrum, Gracorp and Seattle Housing Announce first private development at Yesler Terrace
Purchase and sale agreement has been signed for a development at 12th and Yesler
SEATTLE — Oct. 2, 2012 — Gracorp Capital Advisors Ltd. of Calgary, CA and its local development partner, Spectrum Development Solutions, today announced a purchase and sale agreement with Seattle Housing Authority (SHA) for the private development of property located at 12th and Yesler. This agreement jump starts private participation in Yesler Terrace redevelopment, one of the most ambitious neighborhood revitalizations in Seattle's history.
The half-acre site, located on 12th and East Yesler Way, will be purchased from SHA for $2.88 million. The 116,000 square foot project will consist of approximately 120 apartments with roughly 3,000 square feet of commercial space on the ground floor. All of the apartments are intended to be workforce housing, with 25% of the units committed for twenty years to households earning 80% or less of area median income (AMI). Workforce housing is intended to serve people such as nurses, teachers, policemen, firemen, civil servants and others working nearby in Seattle's downtown corridor. The project plans to participate in the City's Multi-Family Tax Exemption program for twelve of the twenty years. The apartment mix will be comprised of studio, one, and two bedroom apartments. The project expects to target LEED Silver Certification. Mithun is the project architect and Graham Construction will be the general contractor.
"We are excited about the opportunity to develop this project in the city of Seattle as it aligns well with the regional goals of Gracorp Capital Advisors," said Tim Heavenor, President of Gracorp Capital Advisors. "We think the market fundamentals of Seattle remain very strong, especially when it comes to demand for this type of housing."
"As a city and region, we need to continue our focus on the creation of transit oriented development (TOD), mixed-income housing for our essential mainstream workforce," said Jake McKinstry, Principal at Spectrum Development Solutions, which will be providing development management services for the project.
Gracorp and Spectrum will be the first private partners at Yesler Terrace to adopt SHA's social equity goals. The project team will work with SHA to achieve the goal of filling 100% of new construction-related jobs created by the project with individuals earning less than 80% of AMI, with a preference for residents of Yesler Terrace and other SHA housing. In addition, the project team will work toward a goal of awarding 14% of all construction subcontracts to small and minority firms and/or women's business enterprises.
"The revitalization of Yesler Terrace is off to a great start," said Andrew Lofton, Executive Director of the Seattle Housing Authority. "We are pleased to have in Spectrum and Gracorp private partners who embrace the vision for Yesler, in particular the social equity goals that are such an integral part of the Yesler Terrace redevelopment. Creating employment opportunities for our low-income residents is a critical component to the success of the overall development."
"At Spectrum we are focused on proactively finding development solutions that incentivize TOD workforce housing," stated McKinstry. "We believe that we need to support the very workforce engine that is driving Seattle's recovery and growth as an innovative city. The 12th & Yesler project will be a great model and we're thrilled about partnering with Gracorp to take part in SHA's redevelopment vision for Yesler Terrace."
The project will begin early design work this year with construction targeted to start in late 2013 and early lease-up in late 2014.