Lake Union Partners, Mount Baker Housing Unveil Grand Street Commons with 361 Affordable Homes

SEATTLE, Jan. 23, 2025 – Lake Union Partners and Mount Baker Housing Association have announced the completion of Grand Street Commons, a transit-oriented development to provide mixed-income housing near the upcoming Judkins Park light rail station. Grand Street Commons comprises two development projects, Grand Street Commons East and West and Tahoma Valley at Grand Street Commons, which together make up Seattle’s largest concurrently developed mixed-income community.

Spanning three city blocks, Grand Street Commons integrates 775 homes—nearly half (361) designated as affordable housing serving residents from 50 – 80% Area Median Income (AMI) —with 60,000 square feet of retail space. The Seattle City Council’s strategic upzoning policies enabled the project’s unprecedented scale, and HAL Real Estate’s early financial commitment provided essential capital for Lake Union Partners’ land acquisition and pre-construction activities. Construction financing for Lake Union Partners was provided by Umpqua Bank.

“Grand Street Commons represents what’s possible when developers think beyond individual buildings to create true neighborhood transformation,” said Joe Ferguson of Lake Union Partners. “While Lake Union Partners recognized the site’s potential early and assembled the land, this project succeeded because of the extraordinary collaboration between our team, Mount Baker Housing Association, HAL Real Estate, the City of Seattle, and the Department of Ecology. We hope this proves to be a model for how private developers can work alongside nonprofit partners and public agencies to address our region’s housing needs at scale.”

The Seattle Design Commission’s collaborative approach in approving an alley vacation proved crucial to the project’s success in creating thoughtfully integrated public spaces, including a signature plaza and reimagined streetscape that sets a new standard for walkable mixed-income communities.

Mount Baker Housing Association’s expertise in environmental remediation also played a critical role. The site’s redevelopment required addressing significant soil and groundwater contamination. The partners worked with the Washington State Department of Ecology under a Prospective Purchaser Consent Decree (PPCD). Funding was secured from private and public sources, including reimbursements from the Department of Ecology’s Healthy Housing Remediation Program. Remediation efforts included:

• Sampling more than 100 monitoring wells and soil borings to assess contamination
• Removing contaminated soil and treating groundwater
• Recovering cleanup costs from previous property owners under U.S. law

“The Grand Street Commons project demonstrates the exceptional outcomes that can be achieved when public, private, and non-profit entities come together. This collaborative effort addresses environmental challenges as well as the city’s affordable housing shortage,” said Bryon Gongaware, Mount Baker Executive Director. “By leveraging a diverse array of financial and community resources, we were able to transform a previously contaminated site into a valuable asset for the Rainier Valley community.”

Investment partnerships were key to balancing both affordability and sustainability on such a large-scale development. Amazon funded a $10.2 million low-interest loan to support 204 affordable homes at Grand Street Commons, as part of its Amazon Housing Equity Fund—the company’s more than $3.6 billion commitment to preserve and create more than 35,000 affordable homes for individuals and families earning moderate to low incomes in the Puget Sound, National Capital, and Nashville regions—three communities that Amazon calls home.

“The Grand Street Commons project exemplifies the power of partnerships and innovative financing in creating sustainable, mixed-income communities,” said Alice Shobe, Global Director, Amazon Community Impact. “With Amazon’s Housing Equity Fund support, this development will provide much-needed affordable housing for ninety-nine years, ensuring long-term stability for residents. By combining affordability with thoughtful design and sustainability in a transit-oriented location, Grand Street Commons represents a significant step forward in addressing our region’s housing needs.”

PNC Bank also played a pivotal role in financing the development by investing $37 million in low-income housing tax credit equity and providing an $8.85 million construction-period bridge loan to help finance 206 units of affordable housing in this project.

“PNC is a recognized national leader in affordable housing financing,” said Laura MacNeil, PNC Bank regional president for Washington. “In this state alone, PNC has invested more than $260 million in 20 affordable housing projects over the last ten years. Our participation in Grand Street Commons is further evidence of our strong commitment to Seattle and all of Washington.”

About PNC

The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

About Lake Union Partners

Seattle-based Lake Union Partners is an urban real estate company specializing in residential mixed-use and commercial projects in Seattle.   As a team of creative and experienced developers, the company is focused on building projects with design integrity and sensitivity to local neighborhoods. Learn more at www.lakeunionpartners.com.

About Mount Baker Housing Association

Mount Baker Housing Association is a non-profit real estate developer providing affordable housing to southeast Seattle since 1988. With over 700 units of affordable housing, we strive to build brighter futures for our residents and are dedicated to bringing affordable housing options to the members of our community. For more information or to contact Mount Baker, visit www.mtbakerhousing.org.

Photo Taken By: Rebecca Boehme

Left to Right: Matthew Harrington PNC, Bryon Gongaware Mt. Baker Housing, Joe Ferguson Lake Union Partners, Holly Gardner Mt. Baker