SEATTLE-Locally based Mastro Properties recently secured permanent financing for its Nautica Apartments development in Everett, WA. The 122-unit property was completed in 2002 and is currently about 97% occupied.HomeStreet Bank took out its own $7.4-million construction loan on the property with an $8.8-million, 10-year loan that is fixed for three years at the equivalent of the federal home loan bank index plus a spread. A typical spread for this type of project would between 2.2% and 2.5%.Loan officer Tim Patrick tells the property hit the 80% occupancy mark pretty quickly but took longer than expected to stabilize over 90%. The loan, which represents 78% of the value of the project, has no prepayment penalties and is assumable, says Patrick.Located only four blocks east of the Puget Sound, Nautica Apartments contains studio, one- and two-bedroom units in two buildings that also contain 4,503 sf of commercial space. The apartments have views of the Sound and the Olympic Mountains to the west and south, and city views to the north and east. Amenities include a rooftop deck and two large landscaped courtyards facing the Sound, private patios or balconies, storage units, and free high-speed Internet access. The project is only 3% vacant in a market (central Everett) with an average vacancy of closer to 10%. The greater Everett area has been economically depressed but recovery is forecasted, in part due to Boeing making the city its site for production of its new 7E7.

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