Tacoma Shines as New Multifamily Options Become Available
The Hailey’s prime location directly adjacent to the Tacoma public library in the center of downtown made it an attractive investment opportunity and will provide renters with a new option in Tacoma.
TACOMA, WA—Location was a significant factor in a lender’s willingness to finance nearly $35 million for the construction of a 186-unit multifamily development. The Hailey, located at 1210 Tacoma Ave. South, will be completed next year.
The loan was originated by 3650 REIT and provided to Los Angeles-based Cypress Equity Investments which has purchased and developed more than 13,000 multifamily units and other select US projects, and an affiliate of Hoang Quan Group, a Vietnam-based conglomerate. The loan was arranged by Matt Fisher of regional brokerage firm JS Coats Capital LLC.
“The Hailey’s prime location directly adjacent to the Tacoma public library in the center of downtown made it an especially attractive investment opportunity,” said 3650 REIT co-founder and managing partner Jonathan Roth. “The development will provide renters with a new option in a market that has seen significant economic growth and an influx of residents during the past several years. We are excited to be expanding our relationship with the city of Tacoma following our recent success financing the Marriott Tacoma Convention Center.”
The Hailey opportunity was an example of 3650’s value-add partnership due to the previous relationship in the convention center financing Roth mentions.
“Not only did 3650 have a previous relationship with the city of Tacoma and JS Coats Capital through the financing of the Marriott Tacoma Convention Center, but 3650 was also able to navigate the complexities of a project that had previously stalled and needed to be re-mobilized,” Roth tells GlobeSt.com.
According to a study by real estate brokerage firm Redfin, Tacoma ranks as one of the hottest housing markets in the country.
“Tacoma has seen significant economic growth and an influx of residents over the past several years,” Roth tells GlobeSt.com. “Downtown Tacoma in particular has become an urban hub with various demand drivers including the University of Washington Tacoma, multiple museums, the Tacoma Dome, and numerous restaurants and bars.”
The project’s general contractor is Rush Commercial Construction.