Tacoma’s apartment boom continues with 2 more projects approved for the downtown area

Two Tacoma apartment projects recently gained 12-year development tax exemptions from the City Council, with one re-applying with new developers to switch from an all market rate version.

Multifamily property tax exemptions, known as MFTEs, exempt qualifying projects from property taxes on the assessed improvement value for eight, 12 or 20 years, with the 12- and 20-year versions tied to a percentage of development of rent-restricted units. The eight-year version allows for all market rate.

The two sites approved Nov. 29 are on Tacoma Avenue South and South J Street in the downtown area.

In 2021, an apartment project planned for 1555 Tacoma Ave. S., was approved for the eight-year MFTE, sought by developers 1555 Tacoma Ave S LLC. The LLC represented Tripalink, an Los Angeles-based student housing and property management company that planned a seven-story, 86-unit apartment site with four parking stalls.

With the basic plans still in place, another developer represented by another LLC refiled the project to obtain a 12-year MFTE, with 68 of the units market rate and 18 rent-restricted.

The Annex Group, an Indiana-based multifamily housing developer, confirmed with The News Tribune this week it was taking on the project, calling it The Annex of Tacoma.

“The Annex Group is the developer for this proposed property,” David Wesner, land acquisition and development manager for the company, told The News Tribune in a statement emailed this week. “The presented plans are currently for a workforce housing community, and include 86 units of studio, 1 bedroom, and 2 bedroom units. Twenty percent of the units will be made available to households earning 70 percent of the area median income, in line with the multifamily property tax exemption (MFTE) requirements.”

It added that the project is tentatively set to break ground in the first quarter of next year.

The development is across from two other planned apartment sites along Tacoma Avenue South, bringing more than 300 units total with those two projects.

The second project approved for a 12-year MFTE is an undeveloped parcel at 1215 South J St., with an anticipated start date of May 2023, according to permit information on file with the city.

SJ Apartments LLC of Redmond is planning a four-story building with 20 units (15 market rate, five rent restricted) and three parking stalls.