$88M Construction Loan for Leeway in Shoreline, WA

Evergreen Point Group, led by principals Alex Morcos and Faouzi Sefrioui, has secured an $88 million construction loan for the Leeway project in Shoreline, Washington. This premier multifamily development, located at 142 NE 147th St., represents a significant addition to the housing inventory in the Pacific Northwest. The transaction, which closed on March 25, 2026, highlights the ongoing demand for transit-oriented high-density residential communities. JLL Capital Markets acted as the debt advisory team for the borrower, facilitating the financing with a regional bank to bring the project to fruition.

Capital Structure and the 12-Year MFTE

Evergreen Point Group structured the financing for Leeway around a 12-year Multifamily Tax Exemption (MFTE). This public-private incentive is a critical component of the project's financial viability, providing a property tax exemption for over a decade. In Shoreline, the 12-year MFTE program requires developers to set aside 20% of the units for households earning between 70% and 80% of the Area Median Income (AMI). For Leeway, which consists of 254 residential units, this exemption significantly reduces operating expenses during the critical stabilization phase.

The $88 million construction loan provided by the regional bank covers the primary development costs for the asset. The brokerage team at JLL Capital Markets, including Steve Petrie, Tom Wilson, Seth Heikkila, and Jake Davidson, secured the debt as a floating-rate facility. This structure allows the borrower to manage capital costs while the project moves through the construction phase. The loan amount reflects a capitalization of the project's future cash flows, underpinned by the tax savings afforded by the MFTE and the projected rental growth in the Seattle metropolitan area.

Strategic Transit and Market Context

The Leeway project is strategically positioned to benefit from the expansion of the regional transit network. Located just blocks from the Shoreline South/148th St light rail station, the development is a cornerstone of the city's rezoning efforts to encourage high-density residential growth. The station is a key stop on the Lynnwood Link Extension, which connects Shoreline directly to the Seattle central business district and the University of Washington.

This transit proximity is expected to drive high absorption rates upon completion in 2026. Shoreline has become an attractive submarket for developers due to its relatively lower land costs compared to Seattle proper, combined with rapid transit access. The 254-unit project will help address the housing shortage in the North King County corridor, where vacancy rates for Class A multifamily assets remain below historical averages.