Dealmaker: HomeStreet Bank Closes Its Largest CRE Loan

HomeStreet Bank Commercial Real Estate, Seattle, provided a $66 million commercial real estate loan–the largest in its history–for Spruce Apartments in West Seattle.

The 216-unit multifamily asset with 42,000 square feet of retail space delivered last year. 

HomeStreet Bank Vice President and Commercial Relationship Manager Katie Plett secured the financing for Madison Development Group, Kirkland, Wash. The 10-year fixed-rate Fannie Mae Delegated Underwriting and Servicing loan took out the property’s construction financing. 

The sub-4 percent interest rate loan included seven years of interest-only payments, Plett said.

Located in Seattle’s Alaska Junction neighborhood, Spruce Apartments units average 696 square feet. An L.A. Fitness gym with a 20-year lease occupies the ground-floor retail space. Boeing, Microsoft, Costco and Starbucks all have headquarters within three miles. 

Seattle’s apartment vacancy rate stands at nearly 3 percent, Plett noted. “Apartment rents are increasing 10 percent per year in greater Seattle,” she said. “We’re seeing high absorption and low vacancies. Alaska Junction has roughly 10 projects under construction and this is one of the first with more than 200 units to come online, so Madison Development took advantage of hitting the market first and filling up the fastest.”