Higher Costs Looming For Seattle Developers
It's been a great run for developers in Seattle, and the cycle still has legs. But they're also facing the persistent challenge of rising costs, which will be a prime topic at our Seattle Construction & Development event at the Four Seasons Seattle on May 26.
Wallace Properties president and COO Kevin Wallace, who will be a speaker at the event (he's snapped at a previous event), tells us the challenge for new projects is how to underwrite the unclear outcome of Seattle’s “Grand Bargain,” and the new development taxes and affordable housing mandates it brings. "I’m also concerned about the impacts of the major tax increases proposed by Sound Transit and the Washington legislature over the next year," he says. "It may be a long time before rents rise enough to absorb all of these added costs."
Wallace Properties is working on Green Lake Village Phase 2, a Class-A apartment and retail project in the Green Lake neighborhood. It will include 130 apartment units and 14,500 SF of retail space leased to Bartell Drugs. Plans call for 20% of the apartment units to be affordable for renters earning 80% of median income. The property will be ready for occupancy in summer 2017.