#United States #Bellevue #rental housing #Sumitomo Forestry #Trammell Crow

Joint Development Project for Rental Housing near Seattle

In a major collaborative effort, three Japanese companies, Sumitomo Forestry Co., Ltd., Kumagai Gumi Co., Ltd., and Fuyo General Lease Co., Ltd., have teamed up with one of the largest U.S. developers, Trammell Crow Residential (TCR), to develop a multifamily rental housing project in the suburbs of Seattle, Washington. The complex will feature eight stories and a total of 388 units. Construction is slated to begin in September 2025, with an expected rental commencement by December 2028.

Project Overview

Located in the Eastside region, particularly the city of Bellevue, where population and job growth are significantly surging, this project aims to cater to diverse housing needs. The structure will employ a wood-concrete composite design, benefiting from the cost-effectiveness of wood-frame construction, especially for the upper floors. The first three floors will be made of reinforced concrete (RC), while the upper floors will utilize wood framing, which is noted for its lower carbon emissions during construction compared to traditional steel structures. This approach allows wood to sequester carbon, contributing to a long-term solution for carbon reduction.

The target demographic for this housing development is primarily young professionals—individuals with advanced skills and knowledge, while also accommodating families and older couples by providing varied living layouts. Residents will enjoy state-of-the-art amenities, including a well-equipped fitness center, a rooftop deck with stunning views of downtown Seattle and Bellevue, office spaces, and pet care facilities, ensuring a high quality of life.

Area Characteristics

The housing project is strategically positioned approximately 25 minutes from Seattle-Tacoma International Airport and about 15 minutes from downtown Seattle in the Eastgate district of Bellevue. Accessible by major highways, including Interstate 90 and Interstate 405, residents will have easy access to various employment hubs such as Amazon, Microsoft, and T-Mobile, all of which are present in Seattle and the adjoining Bellevue and Redmond areas. Nearby, Bellevue College, the largest community college in Washington State, offers excellent educational opportunities, contributing to the community's high education rankings.

Shops, dining options, and the Factoria Mall can be found close by, making the area not only convenient but also rich in lifestyle and educational resources.

Background for Participation

This project marks the eighth collaboration between Sumitomo Forestry and TCR, following the successful sale of a previous project in Issaquah. The joint venture (JV), composed of Sumitomo Forestry’s wholly-owned subsidiary SFA MF Holdings, Kumagai Gumi, and Fuyo General Lease (USA) Inc., represents a growing partnership aimed at developing sustainable properties. Managing this initiative is Sumitomo Forestry Asset Management Co., Ltd., led by President Narutaka Kisanuki, who will oversee coordination among participants.

Sumitomo Forestry entered the real estate development sector in 2018, with plans to expand its rental housing units in the U.S., projecting 5,344 units to be under construction by 2024. TCR has been identified as a reliable local partner, with ongoing developments in the Seattle vicinity. The target is to deliver more than 10,000 rental units annually by 2027.

In 2017, Kumagai Gumi forged its relationship with Sumitomo Forestry to push the envelope on mid-scale wooden construction. Previous U.S. projects include their participation in an ESG-focused real estate private equity fund and a wooden office building in Dallas. Their involvement in this latest venture is aligned with their commitment to sustainable building practices.

Fuyo General Lease has also engaged in projects for rental housing in the U.S. since collaborating with Sumitomo Forestry, expanding its footprint in the seamless integration of business ventures toward social enrichment through real estate development.

Future Directions

The Sumitomo Forestry Group envisions expanding its operations with a long-term goal titled “Mission TREEING 2030,” focusing on enhancing the carbon absorption capabilities of forests by augmenting the use of wooden construction materials. This aligns with their broader objective to assist in global carbon neutrality.

Meanwhile, Kumagai Gumi has outlined a mid-term plan consisting of initiatives that promote sustainable community development through diverse revenue streams. Their strategy emphasizes enhancing involvement in real estate initiatives as a robust revenue source.

The Fuyo lease group is also committed to sustainable growth, focusing on creating shared value, with ongoing projects aimed at resolving social issues and generating economic benefits.

Projected Property Details

• - Project Name: Alexan Eastgate
• - Location: 14200 SE 32nd ST, Bellevue, WA
• - Rental Floor Area: 33,738 m² (363,151 sq ft)
• - Number of Units: 388
• - Structure/Method: RC for floors 1-3, wood for floors 4-8
• - Construction Start: September 2025
• - Rental Start: December 2028
• - Completion: December 2028

About Trammell Crow Residential

Founded in 1977, TCR is part of Crow Holdings, and has a defined expertise in developing residential properties in thriving economic locations. With a successful track record of supplying approximately 265,000 residential units, TCR continues to embody strength in the multifamily housing market.