Publix Hotel Building to be Redeveloped as Multifamily Property
- Feb 16, 2015
Financing is now in place for the redevelopment of a Seattle multifamily property, thanks to Berkadia, which is providing construction funding for the Publix Apartments. The financing provider, a joint venture of Berkshire Hathaway and Leucadia National Corp., worked on behalf of Publix LLC to secure around $26 million. The company is converting a former hotel into a market-rate housing community in Seattle’s Historic International District. The financing was arranged by Vice President Rob Affleck of Berkadia’s Camas, Wash., office.
Berkadia sourced the loan through the U.S. Department of Housing and Urban Development’s and Federal Housing Administration’s 221(d)(4) sub rehabilitation program. It represents the first historic tax credit deal completed by the Seattle HUD office, a press statement announced. Additional terms include a 40-year, non-recourse loan with a 83 percent loan-to-value ratio.
Formerly the Publix Hotel, the property is located at 504 Fifth Ave. S., between S. Weller and S. King streets. Once completed, the redevelopment project is set to bring 125 new residential units, including 60 restored apartments and 65 completely new units. The ground floor of the property will offer a commercial real estate component. An underground parking facility able to accommodate 28 vehicles is also part of the developer’s plan for the Publix Apartments. The property was built back in 1927 and was then converted to affordable housing. It has been closed since 2003.
According to Affleck, “The property offers affordable housing in conjunction with Seattle’s Multifamily Tax Exemption Program, which will enable Publix Apartments to take advantage of a 12-year tax abatement for offering 20 percent of the units to income-qualified residents.”