More than 300 new apartments planned for Fawcett Avenue in Tacoma
Trent Development of Seattle on Monday announced plans to develop an Opportunity Zone site near Tacoma’s Brewery District and HIlltop, spanning a sizable chunk of land along Fawcett Avenue.
Spanning 1502-1542 Fawcett Ave., the project will include 368 apartment units on the now-empty 1.35-acre property consisting of two, six-story apartment buildings with 268 underground parking stalls, at an expected cost of $105 million.
Opportunity zones are a designation and investment program that came from the the Tax Cuts and Jobs Act of 2017 under the Trump Administration. It allows for tax advantages (deferred or reduced tax exposure for capital gains) for certain investments in lower-income areas.
Tacoma and the surrounding area has multiple Opportunity Zones, focused primarily in downtown Tacoma, Lakewood/Spanaway and Federal Way.
The Washington Building in Tacoma also is being redeveloped as an Opportunity Zone project.
City of Tacoma’s Community and Economic Development director Jeff Robinson told The News Tribune in response to questions via email that the city started talking with the developer about the project in July.
He added the city’s “happy to have another experienced multi-family developer invest in Tacoma on a site within an Opportunity Zone that is well-positioned to help meet the community’s wide range of housing needs.”
The parcels were listed in a $7 million sale transaction with the developer, according to documents recorded online Jan. 28 with the county auditor’s office. Trent purchased the property from Vision Deuce LLC, led by Roger and Henry Hebert.
The project is anticipated to break ground this year with completion set for 2023. The project team includes Studio 19 Architects and Rush Construction. Blanton Turner will manage the property.
FAWCETT APARTMENT PLANS
According to Monday’s announcement from the developer, the site will offer about 8,600 square feet of amenity space and 5,000 square feet of outdoor roof deck area.
The two rooftop areas will offer options for residents: one designed for indoor-outdoor entertainment, and one designed as a quieter reading space and outdoor relaxation room.
The project doesn’t plan to compete with existing businesses with additional retail and is not including any commercial space “in support of existing local merchants in the Brewery District and Hilltop.”
“The Brewery District and Hilltop are Tacoma’s pioneering historic neighborhoods with a wonderful vibe all of their own,” said Trent Mummery, principal at Seattle-based Trent Development, in Monday’s release.
“Business and neighborhood leaders have been working for years to keep the business districts vibrant and authentic. With that in mind, we do not want to add competing retail; we want to support what is original and existing.”
The ground floors of both buildings will offer a co-working space, Top Golf Swing Suite, fitness center, bike convenience room with storage, and a tenant lounge with a 30-foot bar. A landscaped courtyard will connect the amenity spaces and the two buildings, which will also let in light to the inward-facing apartments.
“We are really excited to unveil this project,” added Patrick Ashman, another principal at Trent Development. “The site has been vacant for many years, and we aim to model civic-centric development that provides rent attainable, quality apartment housing within walking distance to downtown Tacoma and major employers.”
According to Monday’s release: “The aesthetic of the project will include reclaimed wood, exposed steel and polished concrete, taking inspiration from heritage buildings along Pacific Avenue and the Brewery District.
“Located on the hill climb, most of the apartment units will include private decks with views of Commencement Bay, Mount Rainier and the skyscape of downtown Tacoma.”
RENTS AND 12-YEAR MFTE
The project’s rent rates are set for individuals earning 80-120 percent of AMI, “which is a missing building type in new construction,” according to Monday’s release.
In Tacoma, HUD calculates the Area Median Income for a family of four as $87,300.
A spokesperson for the development told The News Tribune that final rent amounts have not been determined since it is an estimated 30 months out from opening.
Figures listed on the project’s 12-year multifamily tax exemption proposal, which will be considered at Tuesday’s City Council meeting, show the following:
Market rate:
▪ 41 studios, 446 square feet, expected rent $1,467
▪ 209 two bedroom-two bath, 640 square feet, expected rent $2,100
▪ 44 two bedroom-two bath, 992 square feet, expected rent $3,260
Affordable rate (rents include utitlities):
▪ 10 studios, 446 square feet, expected rent $1,211
▪ 53 two bedroom-two bath, 640 square feet, expected rent $1,385
▪ 11 two bedroom-two bath, 992 square feet, expected rent $1,558
The 12-year version of the MFTE calls for at least 20 percent of the units to be affordable to renters with household incomes no greater than 80 percent of the area median income (AMI), or homebuyers with housing incomes no greater than 115 percent of AMI.
The property tax exemption can be applied to new housing construction or the increased value of a building due to rehabilitation. The exemption does not apply to the land or non-housing related improvements.
Most developers seeking the 12-year version in the past have generally sought them for smaller projects.
In considering the 12-year tax exemption, the city’s action memorandum states: “December 2020 outreach to multifamily properties indicate that Tacoma continues to have only a 4 percent vacancy rate in rental housing, which indicates there is still a critical housing need in Tacoma.”
The Tacoma project marks the developer’s seventh Opportunity Zone project in a year, with a focus on transit oriented development “for middle-income renters,” according to the release. The other sites are in Bellingham, Everett, Lynwood City Center, Seattle and SeaTac.
This story was originally published February 2, 2021 at 5:10 AM.
