Canyon Partners Provides $27.25 Million Mezzanine Loan For Seattle Office Development
November 28, 2022
Loan from Canyon Partners Real Estate will finance 35 Stone, which is set to be one of the most energy efficient and sustainable office buildings in Seattle
SEATTLE – November 28, 2022 – Canyon Partners Real Estate (“Canyon”) announced today that it has provided a $27.25 million mezzanine loan to finance the development of 35 Stone, a pre-leased office development that will be part of Campus Seattle, a larger master-plan development in the Fremont submarket of Seattle. The loan is concurrent with the closing of a senior construction loan from The Union Labor Life Insurance Company (“Ullico”), on behalf of one or more of its Separate Accounts.
JLL facilitated the financing on behalf of evolution Projects, a Seattle-based developer that specializes in developments and projects related to the outdoor industries. Brooks Running will occupy 100% of the office space in 35 Stone, joining the existing Campus Seattle block tenants, which include evo, Bouldering Project, Joule, The Whale Wins and All Together Skatepark. Campus Seattle is designed to reflect the active, outdoor lifestyle and the team’s passion for community-oriented projects.
Estimated to deliver in Q3 2024, 35 Stone will be a five-story building offering 121,000 square feet of office space and 7,000 square feet of retail. Designed to meet the Living Building Pilot Program, the property will reduce energy usage by up to 25% compared to other office buildings and is anticipated to be one of the most energy efficient and sustainable office buildings in Seattle. In addition, 35 Stone will feature mass-timber construction with exposed wood beams and dowel laminated timber ceilings. An elite on-site amenity package will include a roof deck amenity space, bike parking, locker and shower suites, a central lobby with retail offerings and 135 parking stalls.
35 Stone is located at 3524 Stone Way N. in the vibrant Fremont submarket, surrounded by an emerging tech scene and a thriving amenity base of retail shops, restaurants, parks and entertainment offerings. The project is part of evolution Projects’ larger Campus Seattle development, which is anchored by the Fremont Collection and the Seattle Bouldering project. 35 Stone is the first phase of the development with a second phase to be built in the future. The property is within a block of King County Metro bus stops and is positioned along the Burke-Gilman trail, one of the most popular bike and walking trails in Seattle.
Canyon specializes in financing transitional real estate across asset classes, including ground-up development, lease-up projects, refinancings and recapitalizations. The firm has invested approximately $5.5 billion of debt and equity capital across more than 200 transactions over the last 10 years.
The JLL Capital Markets team representing the borrower was led by Director Kaden Eichmeier, Senior Managing Director Bruce Ganong and Associate Chris DuCharme. Brooks Running was represented by Savills Executive Managing Directors Brian Kelly and Eric Lonergran.
“Fremont is a top destination for Seattle’s millennial population, which has in turn drawn many top companies to the neighborhood,” Eichmeier said. “evolution Projects is creating a truly unique asset that will set a benchmark for energy and sustainability standards in the market and we were honored to act as an advisor throughout the process. Congratulations to our client, their investors and new financing partners on this new venture.”
About Canyon Partners Real Estate LLC
Founded in 1991, Canyon Partners Real Estate LLC® (“Canyon”) is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with $24.5 billion in assets under management. Over the last ten years, Canyon has invested approximately $5.5 billion of debt and equity capital across over 200 transactions capitalizing approximately $17.4 billion of real estate assets, focusing on debt, value add, and opportunistic strategies. With 31 years of experience, Canyon has established a broad menu of investment capabilities spanning property types, US regions, and project stages (including development, transitional, and distressed/workouts). For more information visit: www.canyonpartners.com
About Evolution Projects
Led by partners Bryce Phillips and Ira Gerlich, Evolution Projects is a local Seattle-based developer that specializes in developments and projects related to the outdoor industries. Evolution Projects is deeply involved in their local communities and seeks out new opportunities to enhance the given neighborhood or region, building on the characteristics that make them special. For more information, please visit: evolutionprojects.com.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Canyon Partners Real Estate
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Kristen Murphy, JLL Director, Public Relations
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