JLL arranges $109M in construction financing for evolution Projects from Canyon Partners and Ullico for Seattle office development

SEATTLE – November 28, 2022 – JLL Capital Markets announced today that it has arranged $109 million in construction financing for the development of 35 Stone, a pre-leased office development that will be part of Campus Seattle, a larger master-plan development in the Fremont submarket of Seattle.  Brooks Running will occupy office space in 35 Stone, joining the existing Campus Seattle block tenants, which include evo, Bouldering Project, Joule, The Whale Wins and All Together Skatepark. Campus Seattle is designed to reflect the active, outdoor lifestyle and the team’s passion for community-oriented projects.

JLL worked on behalf of the borrower, evolution Projects, a Seattle-based developer that specializes in developments and projects related to the outdoor industries. Canyon Partners Real Estate (“Canyon”) provided a mezzanine loan to finance the development of 35 Stone, concurrent with the closing of a senior construction loan from The Union Labor Life Insurance Company, on behalf of one or more of its Separate Accounts (“Ullico”).

Estimated to deliver in Q3 2024, 35 Stone will be a five-story building offering 112,700 square feet of office space and 7,500 square feet of retail. Designed to meet the Living Building Pilot Program, the property will reduce energy usage by at least 25% compared to other office buildings and is anticipated to be one of the most energy efficient and sustainable office buildings in Seattle. In addition, 35 Stone will feature mass-timber construction with exposed wood beams and dowel laminated timber ceilings. An elite on-site amenity package will include a roof deck amenity space, bike parking, locker and shower suites, a central lobby with retail offerings and 135 parking stalls.

35 Stone is located at 3524 Stone Way N. in the vibrant Fremont submarket, surrounded by an emerging tech scene and a thriving amenity base of retail shops, restaurants, parks and entertainment offerings. The project is part of evolution Projects’ larger Campus Seattle development, which is anchored by the Fremont Collection and the Seattle Bouldering project. 35 Stone is the first phase of the development with a second phase to be built in the future. The property is within a block of King County Metro bus stops and is positioned along the Burke-Gilman trail, one of the most popular bike and walking trails in Seattle. 

Canyon specializes in financing transitional real estate across asset classes, including ground-up development, lease-up projects, refinancings and recapitalizations. The firm has invested approximately $5.5 billion of debt and equity capital across more than 200 transactions over the last 10 years.

The JLL Capital Markets team representing the borrower was led by Director Kaden Eichmeier and Senior Managing Director Bruce Ganong. Brooks Running was represented by Savills Executive Managing Directors Brian Kelly and Eric Lonergan.

“Fremont is a top destination for Seattle’s millennial population, which has in turn drawn many top companies to the neighborhood,” Eichmeier said. “evolution Projects is creating a truly unique asset that will set a benchmark for energy and sustainability standards in the market and we were honored to act as an advisor throughout the process. Congratulations to our client, their investors and new financing partners on this new venture.”

JLL Capital Markets 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 advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Led by partners Bryce Phillips and Ira Gerlich, evolution Projects is a local Seattle-based developer that specializes in developments and projects related to the outdoor industries. evolution Projects is deeply involved in their local communities and seeks out new opportunities to enhance the given neighborhood or region, building on the characteristics that make them special. For more information, please visit: evolutionprojects.com. 

Founded in 1991, Canyon Partners Real Estate LLC® ("Canyon") is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with $24.5 billion in assets under management. Over the last ten years, Canyon has invested approximately $5.5 billion of debt and equity capital across over 200 transactions capitalizing approximately $17.4 billion of real estate assets, focusing on debt, value add, and opportunistic strategies. With 31 years of experience, Canyon has established a broad menu of investment capabilities spanning property types, US regions, and project stages (including development, transitional, and distressed/workouts). For more information visit: www.canyonpartners.com