Sound Transit strikes deal for housing, retail near Capitol Hill station

The exterior of the new Capitol Hill light rail station is seen during a Sound Transit-hosted first-look ride for the media from the University of Washington station to the Capitol Hill station, Tuesday, March 15, 2016. New housing will be built on nearby land that was used for construction of the station. less The exterior of the new Capitol Hill light rail station is seen during a Sound Transit-hosted first-look ride for the media from the University of Washington station to the Capitol Hill station, Tuesday, March ... more Photo: GENNA MARTIN, SEATTLEPI.COM Photo: GENNA MARTIN, SEATTLEPI.COM Image 1 of / 1 Caption Close Sound Transit strikes deal for housing, retail near Capitol Hill station 1 / 1 Back to Gallery

Sound Transit's board on Thursday approved a deal to lease land near the Capitol Hill light rail station that will be developed into more than 300 new apartments on top of retail space.

The $19 million deal will see the land, formerly used to build the station at Broadway East and East John Street, leased for 99 years to developer Gerding Edlen, according to a news release from Sound Transit. Twenty-one percent of the new units will be affordable housing for those making 65 to 85 percent of area median income (between about $52,000 and $69,000 for a family of three).

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"The vision for a thriving development that includes affordable housing just steps from our world-class transportation system is becoming a reality," said Sound Transit Board Chair and King County Executive Dow Constantine in the release. "This is the smart way to leverage the investments that we as a region are making in light rail."

The Portland-based developer will partner with a major real estate equity fund to pay for the development. The deal will require 100 percent union labor.

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Construction of the project could begin as soon as the spring of 2018, with completion in late 2019. All told, the project will include about 400 new apartments across multiple sites east of Broadway, new community and daycare centers, about 30,000 square feet of retail, a public plaza and more, the release said.

The buildings will also meet 2009 LEED platinum efficiency requirements.

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Daniel DeMay covers Seattle culture, business and transportation for seattlepi.com. He can be reached at 206-448-8362 or danieldemay@seattlepi.com. Follow him on Twitter: @Daniel_DeMay.