Construction on a 285-unit apartment complex on Kent’s West Hill along Military Road South remains halted after the company building the project declared bankruptcy.
Work stopped in June on the Alexan Gateway Apartments and hasn’t started up again as Dallas, Texas-based developer Trammell Crow Residential tries to determine its next steps after Texas-based Katerra Construction Services walked off the job.
Mark Hoyt, Trammell Crow Residential managing director in the Seattle area, declined to comment to the Kent Reporter when reached by phone about the project that sits on the northeast corner of Military Road South and Veterans Drive at 23000 Military Road South.
Crews were building three separate four-story, 45-foot-tall buildings with associated parking, amenities, landscaping and utilities on the 6.64-acre site. The development will be accessed via driveways from both Military Road and Veterans Drive. Three single-family homes were demolished to make room for the project.
Katerra notified its key stakeholders that many of its U.S. projects will be demobilizing, according to the company’s website.
“The rapid deterioration of the company’s financial position is the result of the macroeconomic effects of the COVID-19 pandemic on the construction industry, inability to procure bonding for construction projects following the unexpected insolvency proceedings of Katerra’s former lender, and unsuccessful attempts to secure additional capital and business,” according to the company’s website.
Katerra laid off 117 workers in the Seattle area due to closure, according to the state Employment Security Department. The company had more than 10 projects in the state, according to Geekwire.com.
According to the Wall Street Journal, “The firm’s downfall wiped out nearly $3 billion of investor money, making it one of the best-funded U.S. startups ever to go bankrupt. Katerra thought it could save time and money by bringing every step of the construction process in-house—from manufacturing windows to factory-built walls to making its own light bulbs.”