A real estate developer landed a $79 million loan to refinance Marina Square, the largest private waterfront project in Bremerton, a city west of Seattle across the Puget Sound.
JLL arranged the five-year, floating-rate loan through TPG Real Estate Credit for Sound West Group, the developer of the mixed-use project at 280 Washington Ave. that has 270 apartments and retail space. The project is one of several new developments that has helped to refresh the downtown Bremerton area within Kitsap County in recent years.
Recent studies by analytics firm CoreLogic have projected Bremerton to be among the top markets in the United States for home value appreciation in coming years, which is expected to drive demand for such high-end multifamily properties as Marina Square, Seth Heikkila, senior director with JLL, said in a statement.
“Over the next several years, market dynamics in Bremerton are forecasted to outperform relative to most of the country, driven in large part by exciting new developments with the Puget Sound Naval Shipyard and Naval Base Kitsap,” Heikkila said.
The Washington chapter the National Association of Industrial and Office Properties named Bremerton-based Sound West as the 2023 Developer of the Year and the $130 million Marina Square as the Mixed-Use Development of the Year in November.
The apartment complex, which opened last year, counts a roof deck, club room and public plaza with a kayak launch and grills. The 9,158-square-foot retail portion includes The Market at Marina Square shopping area.
The property is also near shops, restaurants and historic sites at the boardwalk and the 2.2-acre Harborside Fountain Park in Bremerton, home to the Puget Sound Naval Shipyard and Naval Base Kitsap. The naval facilities, along with Harrison Medical Center, are the area’s largest employers.
Kitsap County has logged strong population wage growth in recent years, and multifamily developers have taken notice, building around 730 new apartments units over the past five years, according to a CoStar Market Analytics report.