Sound West Group has secured a $79 million refinancing for Marina Square, a 270-unit luxury multifamily community in Bremerton, Wash., on the Puget Sound waterfront. TPG Real Estate Credit provided the five-year floating-rate note that retires existing construction financing; the developer had taken out a $16.7 million loan from Pyatt Broadmark Management and a self-funded $4.9 million loan, both originated in 2019, according to Yardi Matrix data. JLL arranged the current financing on behalf of the borrower.
A luxury community on the Puget Sound waterfront
Completed in 2023, Marina Square rises six stories and comprises studio, one- and two-bedroom floorplans ranging from 290 to 1,120 square feet. The property also includes some 9,200 square feet of ground-floor retail space across three suites: One of them is currently used by The Market at Marina Square, while the other two are expected to be occupied by the YMCA and a restaurant.
Apartments feature in-unit washers and dryers, LED lighting and private balconies or patios in select layouts. Common-area amenities include a clubroom, storage rooms, coffee bar, kayak storage and grilling stations. The property also has sustainability features such as solar panels, EV charging stations and water-efficient appliances.
Located at 280 Washington Ave., in an Opportunity Zone, the property is some 30 miles from Tacoma, Wash., and 60 miles from Seattle. The community is near the Bremerton Boardwalk and also within walking distance of the Bremerton Ferry Terminal which provides transport to Seattle.
JLL Senior Director Seth Heikkila, Senior Managing Director Tom Wilson and Associate Steve Petrie led the Debt Advisory team which arranged the financing. In prepared remarks Heikkila emphasized Bremerton’s forecasted growth driven by the Puget Sound Naval Shipyard and the Naval Bas Kitsap developments.
Luxury developments sustain Seattle’s pipeline
In 2023’s first three quarters, developers expanded the Seattle multifamily stock by 1.3 percent, delivering 3,613 units; 63.2 percent of the total were luxury properties, according to a recent Yardi Matrix report. As of September 2023, the metro’s construction pipeline totaled 32,059 units, along with another 98,000 residences in the planning and permitting stages.
A recent upscale addition to the Seattle market is Quarterra Multifamily and QuadReal Property Group’s 450-unit community, Spectra, which came online in September. Concomitantly, the partners announced the topping out of The Piper, another luxury property expecting delivery in mid-2024. Together, the communities total more than 730 apartments and are both located in the emerging Marymoor Village neighborhood in Redmond, Wash.
