Seattle, WA
CBRE Arranged $68 Million in Construction Financing for 324-Unit Multifamily Development in Lacey, WA
March 12, 2025
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Senior Corporate Communications Manager
CBRE arranged $67.62 million in construction financing for the development of Cypress Apartments, a 324-unit garden-style multifamily community in Lacey.
CBRE’s Connor Lemley, James Bach and Regina Wang secured two loans on behalf of Sage Homes Northwest: $45.62 million senior loan from Kennedy Wilson and $22 million mezzanine loan from PGIM Real Estate for the construction of Cypress Apartments.
“We are thrilled with the financing outcomes for our client, Sage Homes Northwest, amid a challenging market. We look forward to seeing the delivery of this exceptional asset and contributing to the growth and vitality of the region,” said Connor Lemley, vice president at CBRE. “We appreciate the hard work and dedication of all parties involved in making this milestone possible.”
Located at 5224-5228 NE 15th Avenue in Lacey, Cypress Apartments will have a mix of one-, two- and three-bedroom apartments. Planned amenities include a clubhouse with a gym, golf simulator, game room, kitchen and covered BBQ/fire pit area. Units will begin to deliver in Q2 2026; final delivery is expected in Q2 2027.
Q4 2024 multifamily rents in Puget Sound increased 1.7% year-over-year, according to CBRE Research. Investment sales also increased at the end of 2024 as interest rates stabilized. There were more than $1.76 billion in investment sales in Q4 2024, a 273% increase year-over-year.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About Sage Homes Northwest
Established in 2007 by Jesse Molnick and Todd Leabman, Sage Homes Northwest is a vertically integrated real estate investment, development, and general contracting firm known for its strong relationships, deep market expertise, and commitment to quality. Founded in Seattle as a core builder, the company expanded in 2017 to include middle-market, garden-style multifamily communities. With over 2,000 homes delivered or under construction, Sage Homes continues to adapt to market conditions while maintaining its focus on thoughtful, quality development. Over the next 24 months, the company plans to deliver 750 multifamily homes across the Pacific Northwest, expand geographically and continue to reinforce its reputation as a trusted leader in resilient, market-driven housing solutions.
About PGIM Real Estate
With $212 billion in gross assets under management and administration,1 PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,2 and the local experience of professionals in 32 cities globally. Through its investment, financing, asset management and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com.
About PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 42 offices across 19 countries, our more than 1,400 investment professionals serve both retail and institutional clients around the world.
As a leading global asset manager with $1.38 trillion in assets under management,3 PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialized expertise across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
1As of Sept. 30, 2024. Net AUM is $137 billion and AUA is $47 billion.
2Includes legacy lending through PGIM’s parent company, PFI.
3As of Dec. 31, 2024.
About Kennedy Wilson
Kennedy Wilson (NYSE: KW) is a leading real estate investment company with over $28 billion of assets under management in high growth markets across the United States, the UK and Ireland. We focus primarily on rental housing, with over 60,000 multifamily and student housing units owned by the company or financed through our growing credit platform. Drawing on decades of experience, our relationship-oriented team excels at identifying opportunities and building value through market cycles, with more than $60 billion in total transactions closed across the property spectrum since going public in 2009. Kennedy Wilson owns, operates, and builds real estate within our high-quality, core real estate portfolio and through our investment management platform, where we target opportunistic investments alongside our partners. For further information, please visit www.kennedywilson.com.