More market-rate apartments coming to Tacoma’s downtown following tax break approval
Two long-planned apartment projects were unanimously approved for tax breaks by the Tacoma City Council on Tuesday, bringing more market-rate units to downtown.
Debbie Bingham, project manager with the city’s Economic Development Services, told the council that more than 4,000 units have been approved for downtown in a construction period or “build window” of 2020 through this year.
The latest include a development to replace the current Graffiti Garages, 725 Broadway, and a separate development involving buildings that include the former Key Bank Tower on Pacific Avenue.
Both projects gained 8-year multifamily property tax exemptions in Tuesday’s council action.
The 8-year MFTE allows for a development to be all-market rate, as opposed to other versions that call for a percentage to be rent-restricted.
725 Broadway
The apartment plans for 725 Broadway call for 129 market-rate units ranging in rents from $1,575 for 450-square-foot studios to $3,600 for 1,385-square-foot three-bedroom, two-bath unit.
Three live-work units at 900 square feet would go for $2,750, as seen in the estimated rents presented Tuesday evening to council.
The project will include 7,900 square feet of commercial space and 72 parking spaces and would replace the Graffiti Garages, longtime parking garages that have fallen into disrepair and were approved for demolition earlier this year.
According to site plans, the building, given the land’s slope, would rise eight stories above Commerce Street and six stories above Broadway.
The demolition portion had to first go through the city’s Landmarks Preservation Commission because the site was “a non-contributing structure in the Old City Hall Historic District,” the city’s Historic Preservation Office told The News Tribune in response to questions earlier this year.
Plans call for existing murals to be salvaged. The development team has said it also wants to try salvaging and reusing wood at the building.
Bingham noted at Tuesday’s meeting that the project includes “a green room which is in partnership with the city to provide space inside their building for surrounding businesses to store their garbage and recycling.”
The entire project’s construction cost is estimated at $58 million, Bingham added.
The building is owned by an LLC tied to iCap Equity of Bellevue.
Tacoma Tower
The second project approved Tuesday was for the Tacoma Tower, which among other things calls for 63 market-rate units at a site spanning 1117, 1119 and 1123 Pacific Ave.
According to information presented to the council, rents will range from $1,800 for 550-square-foot one-bedroom, one-bath units, to $2,750 for 900-square-foot live/work units.
The former Key Tower, 1119 Pacific Ave., one of the city’s oldest office towers, was sold in November 2021 to Spokane-based InterUrban Development, represented by 111X Pacific LLC, for $6.5 million.
The project will create a mix of office and residential and come with 25,000 square feet of commercial space.
According to its MFTE application, the project calls for “Rehabilitation of the 1117, 1119, and 1123 Pacific Ave. buildings for ground floor retail, 63 apartment units and office space.”
It adds, “There is currently no existing housing units in any of the buildings. Residential space is being created by removing office space from the buildings.”
Bingham told council on Tuesday construction costs for the project are an estimated $12 million.
The project will have a new round of online promotion outlining details soon, according to Jack Rembe, real estate development associate with InterUrban, in response to questions this week.
”We are working on a new website for Tacoma Tower + Oxford Market that will be posted in the next few weeks,” Rembe told The News Tribune via email.
Pre-app plans filed Dec. 14 with the city for Oxford Market describe work to include, “Addition/remodel to revise curb and parking along the north side of South 12th Street that abuts the property at 1123 Pacific Ave., with intention to install sidewalk amenities.”
It said the project includes “restriping the south side of 12th between Pacific and A Street to increase number of parking stalls to mitigate reduction in parking along the north side of South 12th Street.”
The number of street parking stalls at the market site would grow from 20 to 28. The right of way currently provides angled parking.
