A New York-based global developer and a Pennsylvania-based builder of luxury homes announced a joint venture to acquire and develop the 214-acre LakePointe Urban Village mixed-use development in Covington, just east of Kent.
To be built on a former gravel excavation operation site, the property is zoned for up to 1,750 residences, including both attached and detached single-family homes as well as two multifamily parcels, according to an Aug. 16 press release from New York-based Brookfield Properties. It is also approved for up to 1.3 million square feet of commercial space, including retail, office and hotel space, and an assisted living facility.
The site was acquired by a Brookfield Asset Management real estate affiliate and Pennsylvania-based Toll Brothers, and will be developed jointly by Brookfield Properties and Toll Brothers, according to the press release. The transaction is the largest one to date in the region for Toll Brothers, and it represents a significant expansion in the greater Seattle market for Brookfield, which already has a sizable real estate presence in the region that includes office, retail, logistics and multifamily businesses, as well as a master-planned community development, according to the press release.
Bellevue-based Oakpointe Communities was the initial LakePointe developer and received approval from the Covington City Council in 2017 for the project.
Brookfield and Toll Brothers recently bought the property for $43 million, according to records filed with King County, and reported in July by news.theregistryps.com.
The property is located at the northern part of Covington, about 35 minutes from downtown Seattle, and is considered one of the few remaining large parcels of land in the region suitable for community development, according to the press release. Much of the property is in the 18800 block of SE 256th Street.
Site development has begun with grading and is now being managed by Brookfield Properties post-closing. Home sales are expected to begin in the first quarter of 2024, according to the press release.
“This acquisition is an investment in our long-term commitment to the Pacific Northwest, allowing us to leverage our established land development expertise and expand our footprint in a dynamic, growing market,” said Adrian Foley, managing partner, real estate and CEO, development with Brookfield Properties. “Partnering with Toll Brothers and bringing our collective expertise to the table demonstrates our ability to collaborate with a fellow industry leader. This joint venture offers another phenomenal mixed use opportunity in this exciting and sought-after market that continues to see tremendous growth for Brookfield Properties.”
This partnership significantly widens Brookfield Properties’ geographical footprint to complement its presence in Washington state that already includes the nearby 4,700-acre mixed-use community of Tehaleh in Bonney Lake as well as retail, logistics and office properties in the Seattle-Tacoma area. Brookfield Properties’ other Pacific Northwest community is the 463-acre mixed-use community in Hillsboro, Oregon just 12 miles from downtown Portland.
Toll Brothers has been building luxury home communities in Washington state since 2011. The company currently has 10 communities under development in the Seattle area, and also builds in the Portland and Spokane/Coeur d’Alene markets.
“We are excited to partner with Brookfield Properties in a joint venture to develop this very special piece of land in the Seattle area,” said Douglas C. Yearley, Jr., chairman and CEO of Toll Brothers. “This acquisition offers a multitude of opportunities on a coveted development site in the Pacific Northwest. We are looking forward to expanding our presence in the region and working with our partners to bring this significant community development to fruition.”
Toll Brothers, a Fortune 500 company, was founded in 1967 and builds in over 60 markets in 24 states. Brookfield Properties operates more than 750 properties and over 325 million square feet of real estate in markets around the world, but mainly in the United States.
The city of Covington broke ground two years ago on the Covington Connector road projects. That work includes improvements along 204th Avenue SE from the intersection of State Route 516 and SE 272nd Street; SE 256th Street roundabouts at State Route 18; and construction of LakePointe Boulevard.
Planning for the development began in 2013. The 212 acres previously known as the Hawk family property, was home to the Lakeside gravel mine and an asphalt batch plant.
Editor’s note: This story has been corrected with the headquarters locations of Toll Brothers and Brookfield Properties.