Location: Seattle, WA
Developer: Spectrum Development Solutions
Owner: Gvest 12th & Yesler, LP
Partners: Gracorp Capital Advisors
Anthem on 12th is the first private development in Seattle’s Yesler Terrace public housing redevelopment and neighborhood revitalization effort. The six-story transit-oriented development consists of 120 workforce housing apartments and 4,000 sq. ft. of ground floor retail. Thirty percent of the apartments are reserved for households earning between 65 and 80 percent of area median income (AMI), and the remainder are affordable for households up to 120 percent of AMI. The proceeds from the land sale are further supporting mixed-income redevelopment of Yesler Terrace through subsidizing an adjacent development serving households with incomes from 30 to 60 percent of AMI.
Private equity financing, an FHA-insured mortgage, a reasonable land price, design efficiency, and a 12-year tax abatement through Seattle’s Multi-Family Tax Exemption Program (MFTE) made Anthem on 12th financially viable without any public capital. Despite the limited use of public resources, the property carries two affordability requirements. MFTE requires that at least 20 percent of Anthem’s units will be affordable at 65 to 80 percent of AMI for the duration of the 12-year abatement. Extending the affordability requirement further, a covenant in the site purchase agreement requires at least 25 percent of the units remain affordable to households under 80 percent of AMI for 20 years.
While Anthem’s developer emphasized design efficiency, health and sustainability features were not forgotten. The property achieved LEED Gold certification and includes bike storage and repair facilities, a bikeshare station, a fitness center, and a rooftop dog park. These amenities will be shared by Anthem and two additional workforce housing developments under construction at the Yesler Terrace site.