$79M financing secured for Puget Sound waterfront apartment community

SEATTLE, Feb. 12, 2024 – JLL announced today that it has arranged the $79 million refinancing of Marina Square, a 270-unit, newly built, luxury apartment community located on the Puget Sound waterfront in Bremerton, Washington.

JLL represented the borrower, Sound West Group, to secure the five-year, floating-rate loan through TPG Real Estate Credit. Sound West Group was named by NAIOP as the 2023 Developer of the Year, with Marina Square recognized as the 2023 Mixed-Use Development of the Year.

Marina Square’s well-appointed studio, one-bedroom, and two-bedroom units feature water and mountain views, large windows, vinyl plank flooring, quartz countertops, stainless steel appliances and full-size washers and dryers. Amenities at the property include an expansive roof deck with water views, a club room with indoor and outdoor space, a landscaped public plaza with three venue spaces, kayak launch and grilling stations. In addition, Marina Square has three retail spaces, totaling 9,158 square feet. The current retail tenant is The Market at Marina Square, and future retail tenants will be the YMCA and a to-be-named waterfront restaurant.

Situated at 280 Washington Ave. within an Opportunity Zone, Marina Square is located in the flourishing Bremerton submarket and is just steps away from the Bremerton Ferry Terminal, which brings passengers to the Seattle Waterfront in 30 minutes by the Passenger Ferry and 60 minutes by the Auto Ferry. Residents benefit from the adjacent Bremerton Boardwalk, featuring eateries, shops and historic sites, and Harborside Fountain Park, a 2.2-acre waterside plaza. Within a two-mile radius of the property is approximately 2.1 million square feet of retail space. Given its location, the property also offers convenient access to the region’s largest employers, including Naval Base Kitsap and Harrison Medical Center. Additionally, its proximity to the Washington State Ferry system, as well as State Routes 3 and 16, provide residents access to Port Orchard and Silverdale in 15 minutes, Downtown Tacoma in 40 minutes and Downtown Seattle in 30 to 60 minutes.

The JLL Capital Markets Debt Advisory team was led by Senior Director Seth Heikkila, Senior Managing Director Tom Wilson and Associate Steve Petrie.

“The loan from TPG allows Sound West Group to fully execute its business plan for Marina Square,” said Heikkila. “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. A recent study by CoreLogic forecasts Bremerton to be within the top three markets in the country for home value appreciation. This will only further drive demand for high-quality multi-housing rental assets like Marina Square.”

JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Sound West Group (SWG) is a leading real estate development company in the Puget Sound region of Washington. Engaging in the entire development process, from acquisition to construction, lease up and stabilization. For further information, visit soundwestgroup.com.

TPG Real Estate (TPGRE) is the dedicated real estate investment platform of TPG (NASDAQ: TPG), a global alternative asset management firm with $212 billion of assets under management. The TPGRE platform pursues opportunities supported by secular growth trends and those borne from dislocation, with investment strategies that include private equity, core plus, and residential and commercial debt. For more information, visit www.tpg.com.