Kōz Development, a women-led development firm based in Washington, has closed on $48 million in financing for a workforce housing community in downtown Seattle.
Kōz in Lower Queen Anne will bring 169 units of mixed-income housing to a transit-rich area of downtown. Sixty-nine units will be affordable to households earning up to 80% of the area median income (AMI), while an additional 17 units will be restricted through Seattle’s Mandatory Housing Affordability program for 75 years and set aside for households earning between 40% and 60% of the AMI. The remaining units will have attainable rents. Construction is slated for completion next year.
Designed by Kōz, the all-electric development is being built by Kirtley-Cole Associates, a Snohomish County-based general contractor that has worked on several of Kōz’s projects. The development will have a sustainable focus, being constructed to Washington’s Built Green standard.
“This project will fill a real need in the Seattle market, where quality housing is still unattainable for so many,” said Cathy Reines, founder, CEO, and chairman of Kōz Development. “It has been in the making for a long time, so I’m excited that construction is finally underway and grateful to our partners for being so committed to getting this housing built.”
Financing includes an equity investment from MSquared, a women-owned real estate development and investment platform, and a construction loan from Goldman Sachs’ Urban Investment Group. Cushman & Wakefield’s Equity, Debt & Structured team facilitated these two pieces of the capital stack. AMC Investments, a Southern California investment firm, also invested in the development as a joint partner to the affiliate of Kōz. In addition, the developer secured a financial investment from a close network of friends and family investors.
This marks MSquared’s second investment with Kōz Development. The first development, Kōz on Alderwood in Lynnwood, Washington, is 50% complete and scheduled to begin lease-up later this year.
“MSquared is proud to partner with Kōz Development again to deliver long-term affordable housing to households in downtown Seattle,” said Alicia Glen, founder and managing principal at MSquared. “This investment exemplifies MSquared’s strategy—to develop mixed-income, sustainable housing in partnership with a women-led developer.”
MSquared has close to 5,000 units of mixed-income housing that are either complete, in construction, or in predevelopment across the nation. It also is involved in large-scale public-private partnerships, including an overhaul of the Westpark housing complex with the Philadelphia Housing Authority and the redevelopment of North Aud Block in Buffalo, New York, with the Erie Canal Harbor Development Corp.
