December 17, 2012

Vulcan assessing demand for more apartments in U District

Image courtesy of Vulcan Real Estate [enlarge]

If Vulcan decides to move forward, construction could begin by the middle of next year on 216 apartments aimed at professionals and UW employees.

A design review board today will give its recommendations about Vulcan Real Estate's seven-story apartment project in the University District, but Vulcan isn't sure now is the right time to build.

Vulcan is planning 216 units and 3,607 square feet of retail on the site at 4041 Roosevelt Way N.E. A report for the design review board shows 4,422 square feet along Roosevelt Way will be an “active residential amenity,” and there will be 150 parking stalls.

Runberg Architecture Group is the architect and Exxel Pacific Inc. is doing preconstruction work. Vulcan has not picked a general contractor.

Vulcan Real Estate Investment Strategy Director Lori Mason Curran said the company is still assessing the condition of the market. If Vulcan decides to move forward, construction could begin by the middle of next year.

“We want to be aware of everything that's happening there before we put a shovel in the ground,” she said.

Vulcan plans to apply for the Multifamily Property Tax Exemption program and set aside 20 percent of the units for people making less than 80 percent of area median income. That level means $49,300 for an individual and $70,400 for a family of four.

Vulcan has held the site since 2001. An 8,000-square-foot, single-story office building is located there.

The apartments are designed to cater to young professionals and people who work at the university.

Mason Curran would not say if Vulcan is concerned about overbuilding of apartments.

Tom Cain of Apartment Insights Washington said he flagged the University District in 2011 as one of four areas in the city that could be at risk of overbuilding.

The university is planning to open the 928-unit Mercer Court apartments next year, and it is renovating Lander and Terry halls. Several other private housing projects for the U District are also in the pipeline.

“I am worried,” Cain said. The amount of new housing in that neighborhood is “substantial, and a lot of it is right across from Vulcan's site.”

Vulcan has been most active in South Lake Union, but it is expanding to other areas. Vulcan teamed up with Capitol Hill Housing to submit a proposal to be the master developer of Yesler Terrace. Vulcan was also chosen to redevelop Bothell's City Hall, though that project is on hold.