Madison Realty Capital has originated a $97.5 million construction loan to finance the development of Edmonds Green, a 411-unit multifamily community located in Edmonds, Washington. According to Connect CRE, the senior loan forms part of a total construction financing package totaling $131.9 million. The financing also includes a $34.4 million mezzanine loan provided by Red Cove Capital.
The development is being led by The Behar Company and HB Management. Samir Tejpaul, Head of Investments at Madison Realty Capital, led the financing transaction for the debt fund. The property is located at 7212 220th Street SW and will feature two residential buildings along with 10,500 square feet of ground-floor retail space.
What happened
Edmonds Green will bring a mix of studio, one-, two-, and three-bedroom apartments across two residential buildings. The project includes 82 income-restricted apartments, representing 20% of the total units, developed under the City of Edmonds Multifamily Housing Property Tax Exemption program.
General contracting duties for the project will be handled by Exxel Pacific. Connect CRE reported that construction is scheduled for completion in the third quarter of 2029.
What it changes for a closing
For closing teams, the structure demands close alignment between senior and mezzanine debt facilities across a multi-year construction schedule. Because the $131.9 million stack pairs Madison Realty Capital's $97.5 million senior loan with a $34.4 million mezzanine facility from Red Cove Capital, counsel must coordinate intercreditor rights, disbursement protocols, and draw approvals across both lenders through completion in the third quarter of 2029.
The presence of 82 income-restricted units under the City of Edmonds Multifamily Housing Property Tax Exemption program adds local regulatory covenants to the closing checklist. Title teams and legal counsel must ensure that municipal affordability restrictions, tax exemption milestones, and developer obligations are structured properly alongside senior and mezzanine loan covenants.