“American Property Development announces their new apartment development “Kinect” in Burien, adding another 230 brand new units to this growing community. These new units are part of the total 874 units planned to be built in Burien through 2022. This project also adds an additional 8,600 sf of new retail to the area and will property qualify for Burien’s tax exemption program with 20% of the units priced to be affordable. Strong rental demand continues to grow in this thriving community.”
American Property Development Inc. has begun demolishing an old strip center in downtown Burien to make way for a 230-unit mixed use apartment project.
[email protected] will rise just down the street from the completed $193 million Burien Town Square redevelopment, which totals 10 acres and has around 480 multifamily units, a library and City Hall.
“We want to draft off of (Town Square),” said BJ Kuula, president of American Capital Group (ACG), parent company of American Property Development Inc.
The developer acquired mid-block parcels totaling around 1.6 acres for $3.54 million, according to public records. In addition, the developer paid $485,000 to buy out the leases of businesses that operated on the property.
In downtown Bellevue, a similar-sized property sold in late 2019 for $65 million to a development company that is under construction on an office tower that’s leased to Amazon.com Inc.
“Relative to the rest of the Puget Sound (region) Burien definitely has more affordable land, if you can find it,” said Kuula. The problem for would-be buyers is is much of the property is leased long term, he said.
In addition, rents in South King County, where Burien is located, are lower than in Bellevue and the rest of the Eastside. According to Commercial Analytics, a Seattle company that tracks the apartment market, the average rent for an Eastside one-bedroom in March was $1,932 versus $1,428 in the Southend.
In the Southend, 874 apartment units are under construction, excluding Kinect, Commercial Analytics reported. Of those, more than 500 are expected to open in July 2022.
Comparatively, Seattle and the Eastside submarkets will realize more than 10,000 and 4,800 units, respectively, by July 2022.
[email protected]’s development cost is $89.5 million, said the developer whose equity partner is Los Angeles-based Canyon Partners Real Estate LLC.
The project will have 8,600 square feet of retail off of 151st and 276 parking stalls with one level at grade and the other below grade.
The property deals have been in the works since at least July 2020. According to a city staff memo at the time to members of the City Council, American Capital Group approached the city about buying the municipal parking lot on the south side of Southwest 151st Street, east of Eighth Avenue Southwest.
ACG had the adjacent, privately owned property under contract, the memo said; public records list the sellers as Kenneth, Mary and Diana Greenbaum and Janet M. Meister.
According to city Economic Development Manager Chris Craig, Burien was required to get fair market value for the parking lot. An independent appraiser determined the value, he said.
As part of the city’s multifamily tax exemption program, 20% of the homes at Kinect will be priced to be affordable to households with incomes that are 80% of the area median income.
American Property Development designed [email protected], and American Home Builders is the general contractor. Demolition began last month with construction to start next month. Completion is scheduled for summer 2023.
By Marc Stiles – Staff Writer, Puget Sound Business Journal
July 20, 2021, 4:47 pm PDT