By Mary Prenon
Canyon Partners Real Estate LLC and American Capital Group have formed a joint venture to develop Kinect@Burien, a 230-unit apartment project in the Seattle suburb of Burien. Canyon has invested $25.6 million of equity into the project, located in a qualified opportunity zone, and the joint venture also closed on a $51.5 million senior construction loan.
This is the second time in the past two years that Canyon has partnered with ACG on a multi-family project. Canyon and ACG also worked together on Kinect@Lynnwood, another apartment development in the suburb of Lynnwood.
To date, Canyon has invested in a total of nine Qualified Opportunity Zone projects, capitalizing over $700 million of real estate development projects. “Similar to our other qualified opportunity zone venture with Canyon, this multifamily community will provide much needed housing to the greater Seattle area,” said B.J. Kuula, President at ACG. “We are proud to offer both an attractive and cost-effective housing option to residents and contribute to the economic growth of the region.”
Set in downtown Burien, one block west of Burien Town Square, Kinect@Burien will be convenient to many of the area’s major employment hubs, including Kent Valley, Seattle-Tacoma International Airport and downtown Seattle and Bellevue. The rental property will offer a mix of studio, one-bedroom and two-bedroom units, along with secure, covered parking, a fitness center and outdoor community areas.
As a participant in the City of Burien’s Multi-family Tax Exemption Program, Kinect @ Burien will earmark 20% of the rental units as affordable housing. Construction is expected to begin immediately, with completion set for Summer 2023.
Founded in 1991, Canyon Partners Real Estate LLC is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $27 billion in assets under management. Over the last ten years, Canyon has invested some $5.6 billion of debt and equity capital across over 200 transactions.
ACG, established in 1986, is an experienced, locally-based real estate firm that designs, develops, builds, acquires and manages multifamily properties. ACG has developed and acquired more than 80 properties totaling over 16,000 units across 10 states, with a current portfolio of nearly $1.5 billion in assets under management.