Canyon Partners Real Estate, the real estate direct investing arm of Canyon Partners, and American Capital Group (ACG), a Seattle-based real estate company, announced their joint venture in development of a 239-unit apartment project in the Seattle suburb of Lynwood.
Canyon invested $25 million of equity into this project, which is located in a qualified opportunity zone. The joint venture also simultaneously closed on a $45.5 million construction loan from U.S. Bank.
Construction on the development named Kinect @ Lynnwood is set to begin this month and is planned to be completed in the summer of 2022. This investment marks Canyon’s fourth joint venture equity investment into opportunity zones.
The development’s location offers accessibility to major employment and activity centers, including downtown Seattle, Bellevue, Redmond and Everett. Looking to benefit from Sound Transit’s Lynnwood Link Extension project, the development is located within 1,000 feet from the future Lynnwood City Center light rail station.
With the station’s expected opening in 2024, two years after developments expected completion, the transit system will provide residents with direct service to the University of Washington, downtown Seattle and Sea-Tac Airport. The property is also near Alderwood Mall, as well as several retail and grocery options. Once completed, Kinect @ Lynnwood will offer a mix of studio, one-bedroom, and two-bedroom units, with parking and numerous community areas and amenities.
“Kinect @ Lynnwood will offer new housing supply at affordable price points to the community, which we believe is critical as downtown Seattle’s affordability challenges continue to increase,” said B.J. Kuula, Managing Partner, ACG. “We anticipate this project’s transit-oriented location will be an attractive option for renters seeking newly-built housing with convenient access to employment centers and retail options.”
Over the last five years, Canyon has invested nearly $850 million in debt and equity in multifamily investments nationwide, supporting the financing of approximately $3 billion of project capitalization.
Canyon Partners Real Estate, the direct investing arm of Canyon Partners, has invested in approximately $5.2 billion of debt and equity capital across 180 transactions capitalizing approximately $13.9 billion of real estate assets, focusing on debt, value add, and opportunistic strategies.