DEVELOPMENT: Construction about to start on next major West Seattle Junction project

Thanks to Bill for the tip that fencing was up around the site of 4448 California SW [map], long planned for a seven-story mixed-use building. A spokesperson for the development team confirmed to WSB that demolition is expected within days, and a groundbreaking ceremony is planned in early March, now that the project has obtained financing. This is the same team that built the newly opened Harbor Flats apartments and is constructing 9201 Delridge Way SW, with the 17th/Roxbury site also in their portfolio – Housing Diversity Corporation, STS Construction Services, and Atelier Drome architects. The plans for 4448 California show its nearly 90 units are planned to be half apartments, half “lodging” (hotel). The online files also show that, like most developments, for the Mandatory Housing Affordability requirement, the owners have opted to pay the city a fee for affordable-housing development elsewhere rather than include it in their project; they were charged, and have paid, $595,000. (There will be some reduced-rent apartments because of the project’s participation in the city’s Multi-Family Tax Exemption program.) The development team spokesperson says that with construction about to start, completion is expected in fall of next year. (Note: Harbor Flats, STS, and Atelier Drome are WSB sponsors.)

22blades February 14, 2025 (5:31 am)

“Housing Diversity Corporation.” That’s a heck of a name. From their website: “Housing Diversity Corporation (HDC) is a leading impact investment fund manager & real estate developer”

john February 15, 2025 (1:20 pm)

Accurate but misleading selective quote 22blades.Following your comment, I checked their website. You omitted,

“ The organization is dedicated to creating and preserving affordable housing through innovative “affordable-by-design” communities. Their well-designed apartments enable people to live near transit, employment, and amenities at a lower price point, with a focus on the 50-80% Area Median Income (AMI) range. Additionally, through strategic public-private partnerships, HDC provides permanent supportive housing for individuals earning 0-50% AMI.”
What’s there to hate on?

Rocky Bullwinkle February 14, 2025 (5:48 am)

“Hotel?” Is that an actual hotel, like The Grove on Alaska?

K February 14, 2025 (6:05 am)

This is really exciting! I think it will be great to have a hotel right in the Junction!

Valentine February 14, 2025 (7:48 am)

I thought the new building where Indigo Health is located also had a few lodging units.
Lindsey February 14, 2025 (9:55 am)

I agree! There’s not a lot of guest lodging in West Seattle. When my folks come visit, they can stay here instead of an airbnb, which just takes away housing from the market.

CarDriver February 14, 2025 (6:39 am)

Hmmm. If developers can cash out of “affordable” housing where will the money that just got raised by the recent vote actually go? And, I still haven’t seen actual numbers of what’s considered “affordable”.

WSB February 14, 2025 (1:10 pm)

All this information is available on city websites. I linked the MFTE and MHA program sites above, and those sites explain how it works. The “money raised by the recent vote” is for “social housing,” which would be a small part of the city’s subsidized-housing pie. Yes, it all begs for a big-picture explainer…
Mike February 14, 2025 (1:32 pm)

A lot of the “affordable housing” penalty money will go to pay salaries, pension obligations, and benefits for city employees who administer the affordable housing program. Especially now that the city has such a large budget deficit. Hopefully at least the majority will go towards actual affordable housing.
- M.B. February 14, 2025 (6:51 pm)
  
  I’m not sure where the assertion that funds will be used for salaries and pension obligations comes from. The only funds the mayor and counsel has raided are jump start funds. The city publishes annual reports on the use of MHA funds, I took a quick look and $5.7M in MHA funds were raised in 2023 per the 2024 impact report. https://www.seattle.gov/sdci/codes/codes-we-enforce-(a-z)/mandatory-housing-affordability-(mha)-program
DC February 17, 2025 (11:44 am)

Hey @cardriver, when you sell your house are you planning to limit your profits, sell below market and ensure it is affordable to median-low income residents? If not, this one development is doing more for affordable housing than you will in your lifetime.

SJ February 14, 2025 (7:03 am)

It seems like the intent of MHA was to create more affordable housing, particularly in desirable neighborhoods. $600k kinda sounds like a lot, but it is negligible if spread across 90 units that can now be sold/rented at higher prices throughout the lifetime of the building.

Except for the units needed to qualify for the tax break (another financial loss for the city), I don’t see much opportunity here for low income families. Yes, it adds more units to market, but demand is still very, very high.

I’d like to see the buyout program phased out and more affordable units actually being created. Or at the very least, increase the cost to developers to the point that it’s not the obvious choice for every single project. I feel like the good intentions of the community are being taken advantage of. And there are still very few affordable options for people who need them.

Jon Wright February 14, 2025 (7:19 am)

Do any developers ever actually include affordable housing in their project vs. paying the fee to the city?

Mike February 14, 2025 (1:38 pm)

Not very many. The developers and owners would rather liquidate their risk up front than move forward with a property that includes significant amounts of affordable housing. In some areas and with some types of development entities it makes more sense, but definitely not with mid level to upscale projects

Diane February 14, 2025 (8:11 am)

Sad to see West Seattle turn into another downtown.

SoLongDelridge February 15, 2025 (12:18 am)

Some of you are pretty unserious, jokes even.

Thomas Christensen February 14, 2025 (8:43 am)

Hell yeah. More supply means lower prices.

Anne February 14, 2025 (11:11 am)

There have been /still are plenty of new builds in WS- are the prices really going down?
- Build baby build February 14, 2025 (12:11 pm)
  
  Prices will increase but not as fast.
- Jethro Marx February 14, 2025 (12:21 pm)
  
  No, this is just something we say because we want to believe it. This has become the argument du jour of every “urbanist” who thinks we’ll save the environment if we just densify enough. Bit of a thinly-veiled and thinly-informed cult, really. The real world/market is not covered by a TED talk on economics from someone with a lot of enthusiasm but no power to carry it.
  - Bbron February 14, 2025 (2:30 pm)
    
    If those that believe density as a way to reducing housing prices are “ill-informed,” where should they be getting their information instead? where’s the flaw in their thinking?
    - Jethro Marx February 14, 2025 (7:22 pm)
      
      I won’t pretend to be an expert but increasing the stock of high-value housing close to the city seems likely to bring more rich investors who buy these properties knowing they will be stable investments/rental properties (short-term if it’s more lucrative) and more semi-rich people planning to live in them.
      
      If prices do go down or slow their rise anywhere as a result it’s more likely to happen in those far-flung suburbs full of slightly less expensive homes, many of which are aging.
      
      I’m not trying to say what should happen- I’m not even necessarily opposed to this project in the Junction- but I won’t abide all this nonsense about ending homelessness or unaffordable housing via increased for-profit development.
    - ITotallyAgreeWithYou February 14, 2025 (7:47 pm)
      
      Just look at the existing evidence in front of you. Rents here have not gone down despite the thousands of units built in recent years. Look at NYC, one of the most densely populated cities in the US with housing units crammed into every nook and still not more affordable despite that fact.
amythom56@gmail.com February 14, 2025 (11:54 am)

Yeah, tear down below-market rent housing, to build apartments that rent for twice as much. That really helps keep rents low.Not!
- Arbor Heights Resident February 14, 2025 (4:58 pm)
  
  Amythom- how many units of housing are being torn down for this project? To me it looks like between zero and two, but perhaps there are below market units hidden below ground on that parcel.

Citizen Joe February 14, 2025 (8:56 am)

Very sad they opted out of the affordable housing development. Where does that $595k fee payment go?

Charles Burlingame February 14, 2025 (10:02 am)

It goes to building and maintaining affordable housing, which is why they haven’t “opted out” of anything.

Harvey February 14, 2025 (1:46 pm)

Can you tell how many parking spaces will be included for these 90 units?

WSB February 14, 2025 (1:59 pm)

The project has no offstreet parking, as we’ve mentioned in previous reports over the years it’s been in the works. It’s right on a bus line and there is no requirement to include parking.
- wsres February 14, 2025 (2:03 pm)
  
  That $500,000 fee is nothing to a big developer. The fee should be higher. And half apartment? How many square feet is a half apartment?
  - WSB February 14, 2025 (2:07 pm)
    
    Half the NUMBER OF UNITS = apartments, half the NUMBER OF UNITS = lodging. There is no such term as “half apartment” that I know of.
  - My two cents February 14, 2025 (7:56 pm)
    
    Wsres – how did you ascertain your assertion that $500,00 is “ nothing? Also .. the correct figure is $595,000. Present Value v. Future Value? Consideration of Intended holding length of the development? Expected return comparison? There are a myriad of factors that go into the financing and corresponding development decisions which we are not privy to as we are not the parties involved.

1 bed renter February 14, 2025 (8:06 pm)

I just hope these new apartments are of an adequate size. Too many new constructions like the Harbor Flats from this developer and Maris on Fauntleroy have really tiny sub 500 sqfeet apartments that feel really cramped. Median income renters have to suffer from this shrinkflation and pay the ultimate price of private business profits and government welfare programs

Pigeons February 14, 2025 (9:17 pm)

Are they going to humanely rehome the pigeons?

Julz February 15, 2025 (6:57 am)

Will they build in a parking garage? That area is already so packed. The city has to stop letting builders put up apartment buildings without garages.

k February 15, 2025 (8:48 am)

There is no included parking, because this building is catering to people who do not have cars. People who will commute via light rail and shop locally, in the Junction. There are LOTS of other building that do cater to people with cars, and have included off-street parking. The city should NOT require developers to cater to one specific lifestyle.
- Ex-Westwood Resident February 17, 2025 (12:33 pm)
  
  If that is the case K, then ALL who rent/lease there sign a LEGALLY binding document that states they do NOT own, or intend to buy, a motorized vehicle, gas or EV, while residing in ANY of the dwelling units. Under penalty of EVICTION.
  
  Agreed?
  
  Only then should NO on-site parking be required.
  - WS Res February 18, 2025 (9:30 pm)
    
    Goodness. Should the same be required of people who buy or rent homes without a garage or driveway or parking space?

Meg February 15, 2025 (10:02 pm)

We can agree or disagree about whether off-street parking is needed for the apartments but it seems like people coming in from out of town for a hotel are highly likely to have cars.

WS Res February 16, 2025 (8:14 am)

When my family members fly into SeaTac, they don’t bring their cars with them.
- Ex-Westwood Resident February 17, 2025 (12:34 pm)
  
  Do they rent a car?
  
  Do you lend them a car?
  
  Do they stay at your house?
  - WS Res February 18, 2025 (9:31 pm)
    
    No, no, and yes, but it would be nice to have the option of a hotel.