LYNNWOOD—Bellevue-based commercial real estate agency American Capital Group recently acquired most of the land which will be used to build an upcoming, seven-story, 316-unit multifamily apartment project in Lynnwood near Alderwood Mall on 4001 198th Street Southwest.
The current property was purchased for a total of $9.5 million last week bringing the total investment by ACG to a whopping $11.5 million.
The project, which has become known as Enso – formerly Kinect II, was approved by the Lynnwood City Council last April when it unanimously approved the Mayor to enter into an eight-year $6.4 million Multifamily Tax Exemption (MFTE) for ACG Acquisitions, LLC.
The Multi-Family Housing Property Tax Exemption (MFTE) program began in 1995, codified as RCW 84.14, to incentivize residential development in urban centers, designated as “residential targeted areas,” for Washington’s largest cities, according to the Washington State Department of Commerce. Under these exemptions, a property owner, in this case ACG Acquisitions, LLC, does not have to pay property taxes on the residential improvements for a given number of years. Lynnwood City Council accepted the City’s Business & Development Services’ recommendation of eight years. The property owner will still pay tax on the land and on non-residential improvements like the commercial portion of a mixed-use building for the eight years, however.
On May 29, 2007, the City Council adopted Ordinance 2681 establishing the MFTE Program to encourage housing and redevelopment in the City Center District.
Council Vice President Julieta Altamirano-Crosby proposed the motion to approve Mayor Christine Frizzell to enter into an eight-year $6.4 million Multifamily Tax Emption (MFTE) for ACG Acquisitions, LLC, that was seconded by Council President George Hurst, and approved unanimously 7-0.
Construction for Enso is set to commence this month and take two years to complete. Once complete Enso will span approximately 463,000 square feet and include two levels of parking for 397 vehicles. On the ground level the mixed used building will also offer 4,235 square feet of retail space.
Apartments at Enso will range from one-to-three bedroom units and include amenities such as two central courtyards with barbecue stations, and two seventh floor clubhouses with terraces.
Development of the project will take place just east of the city-owned Goodwill store, which will eventually become a park, and a short walk (15 minutes) to the upcoming Lynnwood Link light rail station. The multipurpose building, and its neighboring One Trent apartments which are nearly complete, are the latest in the city’s plan to develop out a new downtown city core called the Lynnwood City Center.
Other members of the project team include Fossatti Pawlak, SCJ Alliance, and Bush, Roed & Hitchings.
