The Frequency
Project Address: 4905 S. Regal Street, Spokane, WA 99223
A Timely Opportunity in Active Adult Housing
SRM Development, LLC (“SRM”) and Black Dog Capital, LLC (“BDC”) have formed a joint venture entity, SRMBDGP, LLC (“SRMBDGP” or the “Sponsor”), to sponsor the development of active adult communities throughout the West Coast, including a 156-unit community in an exceptional location on Spokane’s South Hill.
SRMBD Spokane Equity, LLC (the “Company”) will raise a total of $6,115,000, including $3,115,000 in equity and a $2,400,000 land contribution from the property owner, to invest in a best-in-class, 156-unit active adult community on Spokane’s highly desirable South Hill.
Construction will commence in May 2026. The City of Spokane has approved and issued building permits, the loan has been approved and the interest rate locked, and SRM Construction is finalizing the GMP. The Company presents an opportunity to invest in an active adult community in a highly desirable submarket.
SRMBDGP previously distributed a Private Placement Memorandum (“PPM”) for SRMBD Fund I, LP (“SRMBD Fund”) to develop active adult communities on the West Coast and received total commitments of $25,000,000, including approximately $15,000,000 in equity commitments and the Sponsor’s contribution of more than $10,000,000 in development and construction fees.
Highlights of the project include:
- A highly desirable infill location adjacent to new restaurants and retailers, with many other nearby conveniences, including grocery, personal services, and dining. The community will offer unobstructed territorial views, a generous courtyard with a spa and BBQs, a central mews with a private pickleball court, and an attached private parking garage.
- Unit design and finishes will include walk-in showers, quartz countertops, LVT flooring, and other high-end products, providing a best-in-class residential community on Spokane’s South Hill.
- Attractive demographics, with a sizeable 62+ income-qualified senior population.
- Due to the slowdown in construction activity and aggressive subcontractor pricing, the final GMP is expected to come in below previous estimates, providing an attractive cost basis.
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The construction financing has been approved by HUD and offers several advantages over conventional financing, including:
- No affordability restrictions
- A fixed 6% interest rate
- A 40-year loan term and amortization, with the construction loan converting to a permanent loan upon project stabilization
- An attractive prepayment option, allowing for refinancing if interest rates decrease after stabilization
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The investment structure is attractive for investors, including:
- An 8% preferred return to investors
- An 80% investor sharing ratio
- 20% sponsor participation after payment of the 8% preferred return
- No sponsor catch-up upon sale
- Sponsor contribution of all development and construction fees
156 Units
Premium active adult community
HUD Financing Secured
6% fixed,
40-year term
Construction Ready
Permits approved,
breaking ground May 2026
Reservations are being accepted on a first-come, first-served basis, with all commitments due by April 30, 2026.
Experienced Leadership.
Timely Opportunity.
The principals of SRM have extensive experience and success in developing senior and multifamily housing, and Bill and Billy Pettit, the principals of BDC, formerly led RD Merrill Company and its subsidiaries, Merrill Gardens and Pillar Properties.
Building on SRM and BDC’s experience and success in developing and operating senior housing and market-rate multifamily housing, the team intends to apply its collective expertise to develop active adult communities throughout the West Coast.
Active adult communities offer seniors the opportunity to live in a similar senior-focused community on a for-rent basis, with more robust amenities and activities than conventional market-rate multifamily.
The growth in demand for active adult housing is expected to continue, and the current economic climate has made multifamily development extremely difficult in many markets, with numerous projects delayed or terminated.
We are responding to that environment by securing permit-ready, fully entitled development opportunities with favorable economics and exceptional locations.
Best,
The SRM Development Team