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MSquared Closes on $54 Million Mixed-Income Apartment Project in Seattle Metro Area

MSquared, a women-owned real estate development and investment platform, today announced it has closed on a $54 million development for Kōz on Alderwood, a new, 200-apartment mixed-income, transit-oriented development in the Greater Seattle area. Kōz Development, another women-led development firm, with experience delivering accessible housing in the Pacific Northwest, is partnering with MSquared on the project. The $54 million project is being financed by $35 million in debt from Coastal Community Bank, $13 million in equity from MSquared and $6 million in equity from Kōz Development investors. Construction of Kōz on Alderwood is anticipated to begin in spring 2023, with a completion date slated for early winter 2025.

“This project is a great representation of MSquared’s approach to inclusive development – mixed-income housing, built in partnership with a woman-led developer, on a transit-oriented site and with sustainable design,” said Alicia Glen, Founder & Managing Principal of MSquared. “Our goal is to do this kind of work in cities across the country, promoting a new paradigm for development – one that supports affordability, diversity, and sustainability.”

“We are delighted to announce our partnership with MSquared for this project, as our companies’ missions are impeccably aligned,” said Cathy Reines, President & CEO of Kōz Development. “Both of our organizations are dedicated to offering affordable, workforce housing, and we look forward to working together to achieve this goal.”

MSquared recently surpassed $200 million in Assets Under Management. MSquared’s Funds invest in mixed-use, mixed-income projects in cities nationwide, with a focus on directing capital to women- and minority-owned development teams. In line with that focus, MSquared provided financing for Kōz on Alderwood.

Kōz on Alderwood will be located adjacent to the future site of the Lynnwood Transit Center, the northern terminus of the Sound Transit Link light rail extension that connects Lynnwood to downtown Seattle. The project will include a mix of studio, one-bedroom and two-bedroom apartments. Half of the homes will be affordable to households earning up to 80 percent of Area Median Income (AMI), and the other half will be market-rate. The project is driven by sustainable design, adding housing stock to a transit-oriented site that connects directly to Seattle’s job centers and encourages residents to use active modes of transportation that have a lower carbon footprint, such as the nearby bike and pedestrian Interurban Trail. Kōz on Alderwood is also being built to Washington State’s “Built Green” standard, which approximates to a LEED silver level of sustainability and will include electric vehicle charging infrastructure.

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