Skyline at First Hill, Wash., breaches occupancy covenant after delay

By Angela McDaniels

Tacoma, Wash., July 29 - The Skyline at First Hill retirement community in Seattle has failed to meet the level of occupancy required under its bank loan covenants. The Washington State Housing Finance Commission issued $214.7 million of nonprofit revenue bonds for the project in 2007.

The project has not opened on schedule and has no occupants. It was required to have an occupancy level of 12.5% by June 30, according to a Friday letter from the project to lender Sovereign Bank. The other lender under the credit agreement is Bank of America, NA.

Skyline said it is addressing the missed occupancy covenant by having ongoing discussions with the banks to amend its letter-of-credit agreement to reset the start date of the covenant.

The project plans to open in the fall, which is roughly six months later than originally expected. It attributed the delay primarily to a design and building code issue on the exhaust system and a water main rupture in May.

Skyline said that 169 of its 199 units have been reserved.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.