Lacey Multifamily Development Gets $67.62 in Construction Financing

Commercial real estate services and investment company CBRE announced today that it has arranged $67.62 million in construction financing for the development of a 324-unit garden-style multifamily community in Lacey.

A $45.62 million senior loan from Kennedy Wilson and a $22 million mezzanine loan from PGIM Real Estate were secured by CBRE’s Connor Lemley, James Bach, and Regina Wang on behalf of Sage Homes Northwest, according to a CBRE news release.

The Cypress Apartments, located at 5224-5228 NE 15th Ave., will have a mix of one-, two- and three-bedroom apartments. Planned amenities include a clubhouse with a gym, golf simulator, game room, kitchen, and covered barbecue/fire pit area. Units will begin to deliver in the second quarter of 2026, with final delivery expected a year later, CBRE said.

“We are thrilled with the financing outcomes for our client, Sage Homes Northwest, amid a challenging market,” Lemley, vice president at CBRE, said in a statement. “We look forward to seeing the delivery of this exceptional asset and contributing to the growth and vitality of the region. We appreciate the hard work and dedication of all parties involved in making this milestone possible.”

In the fourth quarter of 2024, multifamily rents in Puget Sound increased 1.7% year-over-year, according to CBRE Research. Investment sales also increased at the end of 2024 as interest rates stabilized. The quarter included more than $1.76 billion in investment sales, a 273% increase over fourth quarter 2023, CBRE said.

Everett-based Sage Homes has more than 2,000 homes delivered or under construction, and it plans to deliver 750 multifamily homes across the Pacific Northwest over the next two years, and to expand geographically, the release said.

PGIM Real Estate, which provides investors and borrowers access to a range of real-estate equity, real-estate debt, and more, had $212 billion in gross assets under management and administration as of Sept. 30, 2024.

Kennedy Wilson, a real-estate investment company with more than $28 billion of assets under management in high-growth markets across the United States, the United Kingdom, and Ireland, focuses primarily on rental housing, with more than 60,000 multifamily and student-housing units owned by the company or financed through its credit platform.

This article is based on information sourced from the original publication, available here.