Sortis Provides Funding for $59.8M Opportunity Zone Project in Near Seattle
TUKWILA, WASH. — Sortis Holdings Inc. (SOHI), a Portland-based private equity firm, has provided equity funding for Tukwila Village Phase II, a mixed-income senior living development in Tukwila, approximately 10 miles south of Seattle.
Sortis invested capital from its $100 million Sortis Opportunity Zone Fund alongside project sponsor Bryan Park, a Puyallup, Wash.-based developer that has developed, owns and operates more than 5,000 senior living apartments in Washington.
Nonprofit operator Sustainable Housing for Ageless Generations (SHAG) will operate the community.
“By 2050, the population of individuals who are 65 and older in the U.S. is projected to double, yet rising rents and lack of supply have reduced the availability of affordable, high-quality housing in desirable locations for this population,” says Paul Brenneke, Sortis founder. “We believe delivering a high-quality project with attractive investment returns while simultaneously providing an affordable housing option to low-income seniors is a win-win.”
The two-phase project is situated on approximately 5.8 acres. Phase II comprises 204 apartment units exclusively for seniors, six live/work units, approximately 8,300 square feet of commercial/retail space and structured parking. Once Phase II is complete in late 2020, the combined project will be the third-largest senior living development in Washington, according to the developer.
The full project, upon completion, will offer 403 apartment units exclusively for seniors, six live/work units, approximately 32,000 square feet of commercial/retail space, over 400 garage and surface parking stalls, a community center, a central outdoor plaza and a new King County public library. One fifth of the units at Tukwila Village will be set aside for seniors making up to 50 percent of the area median income.
The project will use both Low Income Housing Tax Credits and tax-exempt bond financing from the Washington State Housing Financing Commission. Development costs were estimated at $59.8 million.