Dylan Simon -- Kidder Mathews

CMBS lenders offered interest rates fixed roughly 250 basis points over the “swaps” rate on August 22 for loans equal to about 75 percent of the value of an apartment property. That tended to work out to an all-in interest rate a few basis points over 4.0 percent.

Those rates are lower than what Freddie Mac and Fannie Mae lenders typically offered in mid-August. Agency lenders offered 10-year loans fixed at 260 basis points over the yield on 10-year Treasury bonds on August 22 for loans equal to about 70 percent of the value of an apartment property.

Project documents also indicate that 7,658 square feet of commercial and retail space, as well as 7,065 square feet of amenity space, are included in the plans. 159 vehicle parking spaces, both below and at-grade will be part of the development upon completion.

BCJ's program for the site is about the same. The two 23-story towers would rise from the site on the south side of Yesler, commonly called Block 6.1, which totals a little less than an acre.

The towers would be phased, with the north tower preceding the south. They would total about 365 units. Below in the podium would be around 10,000 square feet of retail/commercial space. About 248 parking spaces, both underground and structured, are also planned.

Both towers would have roof decks with around 8,000 square feet each. Total project size is around 360,000 square feet.

Total project size, including the parking, is around 145,000 square feet. The 80 parking stalls will be both underground and structured. A retail/commercial bay with about 1,000 square feet will go on the building's south prow, toward Leary Way.

The freeze-up in business confidence, caused in part by the trade war, could wind up affecting consumer confidence.

The national average multifamily rent rose $3 to $1,469 in July 2019, while year-over-year rent growth rose to 3.4%, up 10 basis points from June. According to the latest Yardi Matrix Multifamily National Report, this marks the 13th month in which rent has risen over 3% on a year-over-year basis.

“A growing number of architecture firms are reporting that the ongoing volatility in the trade situation, the stock market, and interest rates are causing some of their clients to proceed more cautiously on current projects,” the group’s chief economist says.

The planned 53-story tower would have 568 units and 104 parking spaces on five underground levels.

“We’re in the middle of an amenity war, and brand-new properties hold the high ground,” says Sanders, who operates 1,749 apartment units across 11 communities, which are 40 years old on average. “Technology is one area where we can get the upper hand because it’s relatively easy to retrofit units with smart home systems.”

By installing features like smart locks, thermostats, lights, and door and window sensors in those existing units, Sanders has been able to gain her own ground in that amenity war, in the name of higher rents—a bump of 4%, on average, for those units.

Commercial real estate industry leaders continue to see balanced and stable economic market conditions, according to The Real Estate Roundtable’s 2019 Q3 Sentiment Index. The latest survey registered a score of 50, a one-point decrease from the previous quarter. Both the Current-Conditions Index of 53 and Future-Conditions Index of 48 for this quarter remained the same from the previous quarter, reflecting the stabilized real estate market conditions and the overall economy.

The north end of the former Pemco headquarters block, at 330 Yale Ave N. in the Eastlake/South Lake Union neighborhood, has sold for $28.3 million, according to King County records.