BRIDGE Housing is converting 200 market-rate apartments into needed affordable housing in Kirkland, Washington.
The purchase of Vue Kirkland Apartments marks the largest market-rate conversion by BRIDGE as it accelerates its property acquisitions to both create and preserve low-income housing throughout the West Coast.
Acquisitions are an increasingly important strategy for BRIDGE, accounting for half of the nonprofit’s planned addition of 5,100 affordable units between 2024 and 2027. With Vue Kirkland, BRIDGE has acquired more than 800 apartments in three states over the past year, including units whose affordability covenants were poised to expire as well as market-rate units that will be converted. Vue Kirkland is BRIDGE’s first market-rate property that will be fully converted into affordable housing.
The latest deal also expands the firm’s footprint in the Greater Seattle area and marks another collaboration with Amazon, whose housing fund provided a loan to support the acquisition.
“Converting market-rate units is a critical strategy in our mission to increase the supply of long-term affordable housing where it’s needed most—in high-demand, high-cost markets like Kirkland,” said BRIDGE Housing president and CEO Ken Lombard. “We’re proud to expand our presence in the Seattle area, and we deeply appreciate the support of our municipal and financial partners, including Amazon, in making the Vue Kirkland acquisition possible.”
The Seattle Daily Journal of Commerce reported the sale at $55.2 million.
Built in 1977, the garden-style community offers studio, one-, and two-bedroom apartments. BRIDGE plans to convert all 200 units through natural turnover into rent-restricted apartments affordable to households earning 50% to 80% of the area median income (AMI). Three-quarters of the units will be reserved for households earning up to 60% of the AMI.
As part of a partnership with the city of Kirkland and ARCH (A Regional Coalition for Housing), BRIDGE will receive a property tax exemption, which progressively rises to 100% as Vue Kirkland’s units are converted.
In addition to Amazon, the Vue Kirkland purchase was supported by an innovative financing arrangement with Morgan Stanley and National Equity Fund. The $250 million revolving credit facility enables BRIDGE to seize market opportunities to preserve or create affordable housing, avoiding the complexities and delays of traditional affordable housing finance, according to officials.
“Providing attainable housing for all income levels continues to be a priority for the Kirkland City Council,” said mayor Kelli Curtis. “Converting this multifamily community to affordable housing will quickly provide more options for working families in Kirkland. We are grateful to both BRIDGE Housing for extending their mission to our community and to Amazon for their continued support for attainable housing options in Kirkland.”
With the latest acquisition, BRIDGE Housing has more than 1,200 affordable units either open or under development in King County. Overall, the nonprofit’s $4 billion portfolio includes more than 14,500 apartments in California, Oregon, and Washington, with over 10,000 additional units in the development and acquisition pipelines.
