$3K per month for an apartment in Tacoma? You betcha. Here are details on new projects
It’s been a busy year so far for apartment developers in Tacoma as a steady stream of projects has made its way through the city’s tax-incentive program.
Two new apartment projects received tax exemptions this month from Tacoma City Council, and one tied to a formerly delayed high-profile development is set to make its tax-break proposal Tuesday (May 24).
The two that were approved for multifamily property tax exemptions at the May 3 City Council meeting are set to bring a total of 476 new units under separate projects.
The third, the next phase of Tacoma Town Center, will bring hundreds more units.
13th & Fawcett Apartments
The first is being developed by TLF 13th & Fawcett, LLC and TLF 1318 Court D, LLC. The plans call for 277 market rate units at 1301 Fawcett Ave. spread over nine parcels and two buildings between Fawcett and Court D just south of 13th Street.
It calls for 58 studios (587 square feet) with projected rents at $1,775; 140 one bedroom/bath (711-1,124 square feet) with rents at $2,000-2,350; and 79 two bedroom/two bath (1,214 square feet) and rents at $2,875.
The $84 million project includes 292 parking spaces and received an eight-year MFTE, an incentive that exempts qualifying projects from property taxes on the assessed improvement value.
Plans filed with the city describe it as “podium buildings consisting of retail, residential support spaces, residential units and parking, as well as a common area between the two buildings.”
More details were provided in its MFTE filing:
“The 10-story development will have four levels of concrete podium containing three levels of structured parking ... and a ground level floor containing residential units and amenity spaces (including a resident lounge, leasing offices, mail/package rooms, Amazon lockers, a cold storage room, theater, gaming room, meeting rooms, co-working space and a fitness center), with six floors of wood-frame residential units above.”
It noted, “There will also be a tranquility room in the courtyard, an indoor/outdoor amenity space on the sixth floor, a rooftop space, dog lounge, bike storage and on-site storage units. In addition, it will also include a small approximately 1,054 square foot retail space at the northwest corner on the ground floor.”
Target residents include millennials, “employees of the growing technology sector and other professional industries resulting from the influx of new businesses to the area. UW professors and administrators, healthcare professionals, military officers and those looking to move south from Seattle due to lower rents,” according to the MFTE filing.
The development LLCs are affiliated with the R.D. Merrill Real Estate Holdings of Seattle and Eric Cederstrand of Tacoma under TLF Partners, according to corporate listings on file via the Secretary of State’s website.
Construction is estimated to start in August of next year, with completion in early 2026, according to filings with the city.
Cornus House
The second project is being developed by Cornus House LLC, representing Great Expectations of Seattle, which focuses on lower-cost housing development. It received a 12-year MFTE for its 40 rent-restricted units in the eight-story, 199-unit development.
Under the 12-year, 20 percent of the units have to be set aside as “affordable.”
The 12-year MFTE version in this project is still at the previous 80 percent AMI rent formula level used in Tacoma. Projects from March 14 onward take the 70 percent model that council approved late last year.
So far this year, 14 projects have been presented or are set to be presented for approval at the old formula.
The site is at 2502 Pacific Ave., with plans for 159 market-rate units as follows:
▪ 73 studios, 257 square feet, $1,300 expected rent.
▪ 75 one bedroom/bath 358 square feet, $1,500.
▪ 11 two-bedroom, two bath, 546 square feet, $1,725.
For the rent-restricted units, the average square feet for units was listed as the same as the market-rate units, with 19 studios at $1,425, 19 one bedroom/bath at $1,629 and two 2 bedroom, two bath at $1,832, according to the presentation at the May 3 council meeting. Rents in this category include utilities.
The $32 million project includes six parking stalls and 1,776 square feet of retail space and is designed as transit-oriented development. The Cornus House project’s website describes it as the “best connected location in the state, steps away from commuter rail (Sounder), light rail, and bus rapid transit.”
It further describes it as having “well appointed small apartments, with generous amenities including a gym, flex working space and rooftop community room. The design includes high quality brick, concrete and metal siding, which will fit into the fast changing neighborhood. Cornus will contribute three retail spaces to the neighborhood.”
Estimated project completion date on its MFTE application is April 2024.
The developer also has plans for another apartment project across from Cornus House, with Arbutus House, 109 S. 25th St., still in early stages of development.
Ben Maritz, managing partner of Great Expectations, has promoted Cornus House on social media, even recently asking for public feedback on design.
Tacoma Town Center
One of the bigger multifamily developments under way in Tacoma is up for a 12-year exemption approval Tuesday in its final round of apartments, also at 80 percent AMI.
The plans as outlined on the council action memo call for a total of 265 multifamily, market-rate and affordable rental units at 2105 Tacoma Ave. S. This portion of the project includes 340 parking stalls and 4,400 square feet of retail space.
These would be buildings 5 and 6 in the 6-building Town Center project, at an estimated cost of $91.5 million. The MFTE agreement lists construction starting in March 2023 and estimated completion in March 2025.
The 212 market-rate units will range in size from 480-square-foot studios at $1,675 to three-bedroom/two bath at 1,200 square feet and $3,250 in rent.
Plans call for 53 rent-restricted units, ranging in size/rent from 480-square-foot studios at $1,425 to 1,000-square-foot 3 bedroom/two bath at $2,036, including utilities.
Buildings 3 and 4 received their 12-year MFTE in April. That $88 million project calls for a total of 222 market rate and rent restricted units at 506 S. 21st St. The 177 market rate units range in size/rent from 430-square-foot studios at $1,580 to 795-square-foot two bedroom/two bath ranging from $2,000-$2,550, according to the April presentation.
The 45 rent-restricted units offer the same size, with rents ranging from $1,211 for studios to $1,558 for 2 bedroom/two bath, with utilities included. That project also includes 226 parking stalls and 19,300 square feet of retail space, estimated for completion in September 2023.
The project received a jumpstart last year when Galena Equity Partners was brought in to help bring Town Center to completion, transferring a majority interest from original developer North America Asset Management under an amended development agreement approved about a year ago.
The 98 rent-restricted units in the MFTE plans were part of the amended agreement.
NAAM signed its original development agreement with the city in 2015.
Town Center is being built in phases. So far, the 144-unit market rate Jefferson Yards (Building 2), 409 S. 23rd St., is the one site completed on the 6.4-acre site, bounded by South 21st to South 23rd streets and from Jefferson to Tacoma avenues.
A 200,00-square-foot office building at 21st and Jefferson streets in the southwest corner of the parcel and a public plaza onsite are to be completed by May 2025.
This story was originally published May 21, 2022 at 5:00 AM.
