In mid-June the King County Housing Authority issued $140 million in tax-exempt housing revenue bonds to provide permanent financing for the acquisition of Hampton Greens, a 326-unit workforce housing complex in Bellevue, Wash., and to assume outstanding debt on four other workforce properties.
The Hampton Greens development is located adjacent to the Microsoft and Nintendo campuses in a high-opportunity neighborhood with excellent schools and access to public transportation. The property was purchased in December 2019 using a short-term line of credit.
KCHA worked with the KeyBanc Capital Markets’ team to market the bonds utilizing the Authority’s AA/Stable issuer rating from Standard & Poors. The offering was oversubscribed and achieved an overall borrowing rate of 2.95 percent based on a 20 year maturity and 30-year amortization structure.
“Given the current financial environment, we were uncertain of the market’s appetite for housing bonds,” said KCHA Executive Director Stephen Norman. “We were very pleased with the strength of the market response and final all-in debt costs." The Hampton Greens complex is the latest addition to an inventory of more than 6,500 units of workforce housing built or acquired by the Housing Authority as part of its efforts to preserve and expand the affordable housing supply in the Seattle metropolitan region.
Article from the King County Housing Authority