Seattle Sells Mercer Mega Block
As previously reported, Mayor Jenny Durkan planned to sell a plot of land owned by the city of Seattle in the hot neighborhood of South Lake Union. Dubbed the “Mercer MegaBlock” due to its location on Mercer St, the city owned land is 2.86 acres. It was announced that the sale will happen to the tune of $143.5 million. This amount will go towards investing into the city for housing as promised by Mayor Durkan.
Just two weeks ago, Mayor Durkan announced her plans to create more affordable housing in Seattle. As part of the deal to sell the site, the bid included over 150 affordable housing units, $5 million to combat homelessness, and over $78 million on housing investment. The buyer? Alexandria Real Estate Equities, a real estate investment trust company. The site will be home to a life sciences campus consisting of two buildings, hosting biotechnology companies and medical research.
The affordable housing units will be subsidized apartment units for low-income residents. These apartment units will be studio, one- and two-bedroom apartments and will be affordable to those earning less than 60% of the area median income. Within the agreement, Alexandria must keep these units affordable for 50 years. However, the company does plan to build apartment units to lease at market rate. With the Mayor’s extension of the multifamily tax exemption program, Alexandria gains a tax break for the building.
Details of the newly inked deal have emerged. Just released from the Mayor’s office, Seattle will receive the following:
175 affordable housing units for low-income residents
A new 30,000 square foot community center run by the Seattle Parks & Recreation
Much needed improvements to transportation and pedestrian improvements
$143.5 million in cash with $5 million towards combating homelessness
As part of the $143.5 million in cash, $78 million is dedicated to housing as promised by the Mayor. There will be funds held to loan homeowners who wish to build a backyard cottage.
The site contains three buildings with varying square footage. Mercer East, Mercer West, and Dexter buildings will be built for mixed used, commercial, and residential. The sale is reportedly the biggest sale for Seattle land. The deal should close early next year with construction beginning late 2020.