Mavik Capital Provides $180M First Mortgage for Seattle-Area Project
- In the Press
- Jun 5
- 2 min read
Commercial Observer is first to report that West Edge Development has secured a $180
million first mortgage to develop Cedarside Commons, a 516-unit housing and retail
complex in Stanwood, Wash., north of Seattle.
Mavik Capital provided the mortgage debt, which carries a three-year term and includes
a one-year extension option. The entire development will cost $229 million, with the
remaining $49 million of capital made up of equity from West Edge, according to Mavik
Capital.
Cedarside Commons will feature 444 apartments, 72 for-sale townhouses, and roughly
27,000 square feet of retail in the Stanwood suburb about an hour drive north of
Downtown Seattle.
The retail component is expected to include restaurants, cafes and libraries, while the
broader residential development will be within a quarter mile of a high school, a middle
school and two elementary schools, according to Mike Fishbein, managing director at
Mavik Capital.
“The goal is to have a place to bring together people who are looking for an elevated yet
affordable housing experience within a walkable community,” said Fishbein. “The project
is meant to be a walkable community.”
Fishbein told CO that West Edge had purchased the land of Cedarside Commons 25 years
ago and initially planned to build an industrial asset. Then came the 2008 Global
Financial Crisis.
“West Edge was figuring out the right fit for the market. This project went through a
couple of iterations,” Fishbein said. “Then West Edge pivoted toward multifamily after
observing the lack of housing available in the overall markets of the northern Seattle
suburbs.”
Dan Cooperman, head of investments at Mavik, told CO that his firm was introduced to
West Edge by a rival firm.
“We were introduced to West Edge by one of our existing borrowers – it’s a testament to
the strong relationship we built with them” he explained.
The project is expected to take 36 months to complete, but the first residential units will
be delivered in 13 to 14 months.
Both Cooperman and Fishbein emphasized the deep experience Mavik Capital and West
Edge Development have in the Seattle region. West Edge has more than four decades of
experience building in the region and currently manages a 1.6 million-square-foot
portfolio across the Pacific Northwest.
“This is a market that is probably overlooked by the other players who might participate
in a $180 million capitalization of a mixed-use project,” said Cooperman. “Our familiarity
with this market gave us the inside track.”
Fishbein noted that Mavik has financed five projects that delivered 500 units in various
stages to the region for a total investment of $200 million over the last six years. These
included both construction and development lending as well as stabilization loans.
“The one thing we’ve been able to observe is performance — the community is supportive
of construction,” he said. “The leasing demand has been there when projects deliver.”