Locally based developer SRM has closed a $38 million construction loan through Washington Trust Bank to build Nuovo, the first phase of a two-part multifamily housing community near downtown Bellevue, Washington. Both phases will deliver apartments at below-market rents and will be built without public funding thanks to participation from Microsoft’s Affordable Housing Initiative.
“Creating this many housing units near downtown Bellevue and light rail is possible because of the ongoing engagement and diligence of many public, private, and nonprofit housing supporters in Bellevue—including strong leadership from mayor [Lynne] Robinson, the Bellevue City Council, and city staff team,” said Microsoft Philanthropies senior director Jane Broom.
The first phase, which is expected to start construction later this month, will comprise a five-story building with 135 one- and two-bedroom units for residents earning 80% to 100% of the area median income (AMI). According to SRM, once construction is complete, it will transfer the building to a nonprofit housing operator to preserve long-term affordability.
“Below-market multifamily projects in a great location like this are extremely rare and challenging to execute. Bellevue is Washington’s highest cost market for housing, and therefore rental homes in this affordable category are in dire need,” said Conor Hansen, SRM’s affordable housing principal. “This project will provide much-needed housing for Bellevue’s workforce and would not be possible without Microsoft’s ability to add flexible financing through its Affordable Housing Initiative. They are meeting gaps in the market that otherwise would not be fulfilled.”
The second phase, 991 East, contains a partially constructed 150-unit hotel, which is expected to be converted to housing for up to 200 one-, two-, and three-bedroom units for residents earning less than 60% of the AMI.
In addition to this two-phase community, SRM has nearly 1,500 affordable apartments scheduled for delivery over the next three to five years in the Puget Sound.