Seattle’s first affordable housing high-rise in more than 50 years has received a $57.6 million commitment from Enterprise Housing Credit Investments.
Under development by Plymouth Housing and Bellwether Housing, the 17-story building will bring 365 apartments to the First Hill neighborhood. Although it will be constructed as one building, the project is made up of two separate developments at 1400 Madison St. and 1014 Boylston Ave.
The Boylston supportive housing development, located on the second through fifth floors, will include more than 100 studio apartments and will be developed by Plymouth. It will serve homeless seniors who earn up to 30% of the area median income (AMI) and will offer supportive services. Service staff will provide individualized case management, daily living support, social engagement and outings, and coordination of psychiatric care when needed. Plymouth will benefit from operating subsidy from the city of Seattle and King County; residents will pay 30% of their income.
Rise on Madison, built on the 12 floors above the Boylston development by Bellwether Housing, Seattle’s largest nonprofit affordable housing developer, will include 250 apartments for workforce and family households earning up to 60% of the AMI. There will be 91 studio, 111 one-, 22 two-, and 26 three-bedroom apartments. Rents will range from $1,015 for a studio to $1,783 for a three-bedroom unit.
Bellwether will provide resident service coordinators to assist residents and address barriers to housing, including disabilities, mental health, financial, employment, and health issues. The coordinators can connect residents to financial resources, public assistance, health and wellness, employment, and other opportunities within the community through formal partnerships and direct referrals.
The development, which is being built on a surplus Sound Transit site, is structured as a “twinned” low-income housing tax credit (LIHTC) deal, with Boylston receiving a 9% LIHTC allocation and Rise on Madison being eligible for 4% LIHTCs through its tax-exempt bond financing.
Enterprise’s investment is the largest single housing credit equity deal in its history, according to officials.
“The Madison/Boylston development is a breakthrough as rents in high-cost cities like Seattle continue to soar out of reach for working families and those on fixed incomes—a crisis that has only been exacerbated by the COVID-19 pandemic,” said Scott Hoekman, president of Enterprise Housing Credit Investments, a LIHTC syndicator. “Enterprise is excited to partner with Bellwether Housing and Plymouth Housing, both experienced developers, in making this unique development a possibility for the hundreds of families who will call it home.”
Enterprise’s investor for its nearly $58 million investment in the combined deal is Bank of America. Bank of America is also providing a $67 million construction loan for Rise on Madison and a $16 million construction loan for the Boylston development. The city of Seattle, King County, state of Washington, and Sound Transit are providing a combined $37 million in soft financing to both projects, with Rise on Madison receiving $17 million and the Boylston development receiving $20 million.
“Bank of America Community Development Banking was pleased to provide $84 million in construction financing and $58 million in direct equity through Enterprise to help build much-needed workforce and affordable housing for families in Seattle,” said Maurice Coleman, Community Development Banking market executive at Bank of America. “This development demonstrates our continued commitment to creating safe, affordable housing and supporting the communities in which we work and live.”
