In a deal that shows just how competitive the affordable housing market has become, Northmarq's Seattle investment sales team has closed the sale of Merritt Manor, an 82-unit midrise apartment community at 3335 Martin Way E. in Olympia, for about $19.55 million. Built in 2020 as a workforce and affordable housing community, the four-story complex offers two- and three-bedroom units and on-site amenities that include full-size washers and dryers, a playground and EV charging. The sale shifts ownership to a limited-liability buyer entity and ranks as one of the larger affordable multifamily trades in Thurston County in recent months.
Northmarq said it represented the seller, Fourth Street’s Merritt Manor LLC, and that the buyer is an entity called Merritt Manor LLC. The Seattle team on the assignment was led by Joe Kinkopf, Steve Fischer and Tyler Smith, according to Northmarq. "Despite the property’s unique Multifamily Tax Exemption structure limiting the buyer pool, our team successfully sourced a private investor with deep Low-Income Housing Tax Credit and Housing and Urban Development lending experience," Kinkopf said in a statement. Northmarq put the transaction value at $19.55 million and said the closing helps preserve affordable housing in the county.
How the tax break shaped the deal
The property’s Multifamily Tax Exemption was a key factor that shaped the sale, making affordability covenants and specialized financing central to any bid and narrowing the number of potential buyers who could step up. The state's MFTE program generally allows an 8- or 12-year property tax exemption and ties the longer term to affordability commitments, as explained by MRSC. Marketing materials for Merritt Manor also list an MFTE in place through 2032, a detail that likely influenced underwriting assumptions and the bid process, according to LoopNet.
Built as a community resource
Merritt Manor opened in 2020 as an 82-unit project aimed at families earning about 60 to 80 percent of area median income, created through a partnership that included Fourth Street Housing, the nonprofit Help Us Move In (HUMI) and local lender Olympia Federal Savings. Olympia Federal Savings, which helped finance the project, and local housing groups have described the complex as a locally led response to adding affordable rental supply at a time when that supply was under pressure. Olympia Federal Savings notes that Merritt Manor was the city's first privately developed project to receive a 12-year MFTE.
What comes next
Northmarq said the buyer’s experience with Low-Income Housing Tax Credits and HUD lending should position the property to meet its affordability obligations while navigating HUD financing timelines, and that seller flexibility around HUD loan timing helped unlock a premium price, according to Northmarq. Industry coverage has noted the closing as part of a niche trades market for subsidized multifamily, with Connect CRE reporting the transaction on Friday. For residents and local housing advocates, the immediate impact is continuity of affordable units under the existing MFTE structure.
Transaction and marketing materials are publicly available through the property’s listing and county record systems. The LoopNet offering and the Thurston County Auditor online index carry parcel and tax assessment details for 3335 Martin Way E.
