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Sortis Holdings provides $59.8 mln for senior living development

Sortis Holdings provides $59.8 million in funding for an opportunity zone project in Tukwila, Washington. The project will be a mixed-income senior living development.


PORTLAND, Ore.–(BUSINESS WIRE)–Sortis Holdings Inc. (SOHI), a Portland, Oregon-based private equity firm, closed on equity funding for Tukwila Village Phase II, a mixed income senior living development in Tukwila, Washington. Sortis invested capital from its $100 million Sortis Opportunity Zone Fund alongside project sponsor Bryan Park, a Puyallup-based developer who has developed, owns and operates more than 5,000 senior living apartments in Washington. The completed project will be operated by Sustainable Housing for Ageless Generations, or SHAG, a 501(c)(3) nonprofit.

“By 2050, the population of individuals who are 65 and older in the U.S. is projected to double, yet rising rents and lack of supply have reduced the availability of affordable, high-quality housing in desirable locations for this population,” said Paul Brenneke, Sortis founder. “We believe delivering a high-quality project with attractive investment returns while simultaneously providing an affordable housing option to low-income seniors is a win-win.”

The two-phase project is situated on approximately 5.76 acres. Phase II comprises 204 apartment units exclusively for seniors, six live/work units, approximately 8,300 square feet of commercial/retail space and structured parking. Once Phase II is complete in late 2020, the combined project will be the third-largest senior living development in Washington, encompassing 403 apartment units exclusively for seniors, six live/work units, approximately 32,000 square feet of commercial/retail space, over 400 garage and surface parking stalls, a community center, a central outdoor plaza and a new King County public library.

Twenty percent of the units at Tukwila Village will be set aside for seniors making up to 50% of the area median income. The project is able to deliver attractive investment returns through the use of both Low Income Housing Tax Credits and tax exempt bond financing from the Washington State Housing Financing Commission.

The $100 million Sortis Opportunity Zone Fund was created to take advantage of provisions in the 2017 Tax Cuts and Jobs Act that enable accredited investors to benefit from one of the most advantageous capital gains tax reduction programs in a generation. The legislation created opportunity zone funds as a new investment vehicle designed to incentivize investment in targeted communities. Investors can roll over recently realized capital gains into these funds, allowing for the deferment and reduction of their capital gains taxes and the elimination of capital gains taxes on any future profits from the investments in the opportunity zone funds. The Sortis Opportunity Zone Fund is focused on the Northwest, following the footprint of the company’s successful lending fund, the Sortis Income Fund.

About Sortis Holdings
Sortis Holdings is a private equity firm with a primary focus on real estate, both as a lender and direct investor. With its roots as a former bank holding company, Sortis has evolved into a diversified firm that both lends and opportunistically invests in real estate with a focus on the Western U.S. Since real estate and financial markets are constantly evolving, the firm’s ability to move between asset classes and positions in the capital stack makes it more nimble than its competitors. Operating under the principles of client focus, integrity, hard work and creativity, Sortis Holdings provides its accredited investors with well-managed, diverse, asset-based investment strategies. Learn more at