7/20/2023

Kick-Off Party for Rainier Ave Project Draws Opportunity Zone Investors From Across the Country

Last week, Nitze-Stagen, Housing Diversity Corp., and Pinnacle Partners hosted a kick-off party to celebrate their 400-unit apartment development on Rainier Ave in Seattle, which was well attended by investors in the project, local city officials, and memebrs of the press.

caption: Girmay Zahilay speaks during a celebration of the 900 Rainier project's construction progress

Construction is currently underway for the impressive eight-story 900 Rainier project, which takes its name from its location on Rainier Avenue South near the future Judkins Park light rail station. This project in South Seattle demonstrates the strong interest in investing in Opportunity Zones. The development is a collaboration between O.Z. Navigator, a partnership between Seattle companies Nitze-Stagen and Housing Diversity Corp., and Pinnacle Partners. It is fully funded by Mack Real Estate Strategies.

O.Z. Navigator sees 900 Rainier as a model for private development that addresses affordability. This privately funded project is the city's largest and offers mixed-income apartments for rent to individuals earning 40-100% of the area's median income. It also includes 2,000 sq ft of commercial space that O.Z. Navigator hopes to fill with local small businesses and nonprofits.

Leo Backer, managing partner of Pinnacle Partners, the Seattle-based company providing the Opportunity Zone equity for the project, revealed that around 100 investors, both local and national, invested in the project. Pinnacle Partners is also a member of the 900 Rainier joint venture and sourced the 1.5-acre project site. In fact, Backer mentioned that the number of private opportunity zone investors for 900 Rainier has almost doubled in the past seven months, and Pinnacle's fund is oversubscribed. This indicates a strong demand from high-net-worth individuals and family offices to invest in Opportunity Zone attainable-housing projects, as well as the availability of patient capital.

Read more from the various publications that covered this kick-off party:

Puget Sound Business Journal: Over 100 investors pour money into big Seattle opportunity zone project

CRE: Nitze-Stagen Starts Construction on 900 Rainier Project

Daily Journal of Commerce: Nitze-Stagen holds kick-off party for 398-unit Rainier Valley building

The Registry: 900 Rainier, a 400-Unit Project Looks to Reshape South Seattle Landscape