Key transaction terms were approved by the Sound Transit Board of Directors allowing developers to build almost seven acres of transit-oriented development (TOD) adjacent to the recently completed Operations and Maintenance Facility (OMF): East.
BRIDGE Housing and its partners were selected last year to develop the project, valued at more than $500 million.
Sound Transit and the city of Bellevue, Wash., worked together for many years on a creative plan to integrate the OMF East into the city’s plans for the rapidly developing Bel-Red corridor. Their collaborative vision for the site, located across from the Spring District/120th Link light-rail station that will open in 2023, features a vibrant mix of uses including affordable and market-rate housing, offices, retail and public space.
"The Spring District/120th Station area is transforming into a transit-oriented community with thousands of new homes and jobs, including some 280 units of desperately needed affordable housing," said Sound Transit CEO Peter Rogoff. "The economic development that is accompanying our Eastlink rail expansion must benefit everyone and we are thrilled that this project will deliver affordable housing alongside market rate housing, office and retail spaces surrounding our new maintenance facility and rail station, allowing residents quick access to opportunities on a light rail network stretching from Redmond to Seattle to Lynnwood and Federal Way by 2024."
"From the beginning, the promise of light rail has been an opportunity for Bellevue to think big and create a new urban neighborhood," added Bellevue Mayor Lynne Robinson. "This important step represents the culmination of many years of hard work by the city of Bellevue and Sound Transit to create hundreds of new, affordable homes for Eastside families within walking distance of public transit and other quality-of-life amenities. I look forward to carrying forward this spirit of public-private collaboration across the entire Bel-Red corridor."
BRIDGE Housing will serve as the qualified entity lead developer and affordable housing developer. BRIDGE has participated in the development of more than 18,000 homes on the West Coast.
"Sound Transit's Spring District site is an unparalleled opportunity for BRIDGE to bring much-needed affordable housing to the Bellevue community as part of a vibrant, mixed-use collaboration with Essex Property Trust and Touchstone/Urban Renaissance," said Ken Lombard, president and CEO of BRIDGE Housing.
Touchstone, a URG Company, will develop the commercial office component. Touchstone is based in Seattle and has worked in the region for more than 35 years.
Essex Property Trust will develop the market-rate housing and is a fully integrated real estate investment trust that acquires, develops, redevelops and manages multifamily residential properties in selected west coast markets.
The project is planned to include:
- Approximately 500 units of housing, of which around 280 are affordable units serving a range of incomes between 30 percent and 80 percent of area median income.
- More than 400,000-square feet of office space.
- Active ground floor uses including retail and resident amenities.
- A public park.
- The master-planned, multi-phase TOD is expected to be built out over the next decade, following recent residential and office growth in the adjacent Spring District.
The development team is pursuing a creative financing strategy for affordable housing that utilizes the recently announced Amazon Housing Equity Fund, which committed $100 million to support affordable housing on Sound Transit property.
The Amazon Housing Equity Fund is a more than $2 billion commitment to preserve and create more than 20,000 affordable housing units in Washington State’s Puget Sound region; Arlington, Virginia; and Nashville, Tenn.—three hometown communities where the company has a large and growing presence.
The Amazon Housing Equity Fund increases housing options for moderate-to-low-income families by providing affordable housing providers with quick access to low-rate loans to create or preserve buildings where affordability would have otherwise been lost to commercial-rate development. The fund will also provide cash grants to businesses, nonprofits and minority-led organizations to help them build a more inclusive solution to the affordable housing crisis, which disproportionately affects communities of color.
"When we launched the Amazon Housing Equity Fund earlier this year, we put a stake in the ground to address the imminent need for equitable affordable housing development through innovative solutions and speed. Sound Transit is already helping us deliver on both," said Catherine Buell, director of the Amazon Housing Equity Fund. "We are proud to support smart transit-oriented development that helps to bring families closer to more opportunities, services and a better quality of life."
The city of Bellevue and Sound Transit each contributed approximately an acre of land at no cost, valued at around $12 million to support the development of affordable housing.
Once all office and market-rate housing projects have completed their construction and lease-up period, Sound Transit can expect a minimum of $1.36 million in annual ground rent. This amount increases over time with CPI adjustments and land value readjustments. Sound Transit will also receive one percent of gross sales proceeds as profit participation upon the first sale of an office or market-rate housing building.
