Northmarq secures $60.8 million loan for mixed-use West Seattle property anchored by LA Fitness
A Washington-based real estate developer has secured a major refinancing package for a mixed-use apartment community in West Seattle, reflecting renewed confidence among lenders and investors in the region’s commercial real estate market.
Madison Development Group, headquartered in Issaquah, obtained a $60.8 million refinancing loan for Spruce, a 216-unit apartment and retail complex located at 4555 39th Ave. SW. The financing was arranged by Northmarq through Fannie Mae.
Completed in 2015, Spruce combines residential units with ground-floor retail space and is anchored by an LA Fitness location, making it one of the prominent mixed-use properties in the West Seattle area.
The refinancing transaction ranks among the largest multifamily financing deals completed in the Seattle region this year and highlights the growing appetite for apartment investments as market conditions continue to improve.
Investor and lender activity has accelerated across the Puget Sound area, fueled by strong demand for residential properties and increasing confidence in commercial assets tied to major technology employers.
Several significant refinancing transactions have recently been completed throughout the region. In one notable deal, Northwestern Mutual provided a $53 million loan to Vancouver-based Low Tide Properties for the refinancing of the 110 Roy Street apartment community near Seattle Center.
The office sector has also seen renewed financing activity. Earlier this year, Schnitzer West and Baupost Group secured a $525 million refinancing package for a 25-story office tower in downtown Bellevue that is fully occupied by Amazon.
In another major transaction completed during the same period, Kemper Development obtained $238 million in refinancing for a Bellevue office property leased by major technology companies including TikTok and Microsoft.
These transactions suggest that capital providers are becoming increasingly active in the Pacific Northwest market as property fundamentals strengthen and investor sentiment improves.
For the Record
The financing for Spruce was arranged by Northmarq’s Seattle debt and equity team, led by Managing Director Stuart Oswald along with Vice Presidents Jack Bell and Ben Biggers, who represented Madison Development Group in the transaction.
Source: Original reporting by Randyl Drummer, CoStar News.
