The Nesttun

A mixed-use investment opportunity in the heart of the vibrant Ballard neighborhood
of Seattle, WA

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Project Overview

A mixed-use investment opportunity in the heart of the vibrant Ballard neighborhood in Seattle, WA to redevelop 5 lots into a 100,650 square foot mixed-use building consisting of 163 apartments including 12 live-work units, and a 1,500 square foot street-level commercial use space.

target IRR


Target IRR

Equity Multiplier


Equity Multiplier

Minimum Investment


Minimum Investment

Investment Terms

5 Years

Investment Terms

Total Sqft


Total Sqft

Residential Units


Residential Units

Commercial Sqft


Commercial Sqft

Work/Live Apartments


Work/Live Apartments

Nesttun Development Street View

A Vibrant Neighborhood

Ballard is one of Seattle’s fastest growing and most desirable neighborhoods boasting craft breweries, trendy restaurants, bars, and boutique shopping. Seattle industry insiders are calling it one of the “most exciting neighborhoods to watch grow.”

Beyond just a great neighborhood, it sits right on a major artery to the heart of the city and a prospering job market. Seattle holds the headquarters of name-brand giants Amazon, Microsoft, Starbucks, and has attracted major campuses from other notable tech names like Google to compete for the burgeoning tech talent.

Seattle Neighborhood Map
Neighborhood View of the Nesttun Building

SQFT Breakdown

Unit Type # Units Sqft Total Space
Live-Work 12 630 7,560
SEDU 60 320 19,200
Studio 4 375 1,500
1-Bedroom 42 430 18,060
2-Bedroom 17,690
Commercial Unit 1 1,400 1,400

The Nesttun Building

The “Nesttun” building, named after the Nesttun neighborhood in Norway draws inspiration from Scandinavian designs and aesthetics.

Designed to cater to the millennial “high-tech” Seattle workforce, the “Nesttun” will be a total of 100,650 sqft. Included in this space will be 163 residential units, a 1,500 sqft first-floor commercial “coffee shop” unit, a lobby, two elevators, 62 parking spaces, a leasing office, a rooftop deck with inspired views, tenant event room, and a dog-friendly walk & cleaning station.

Nesttun Building
Ballard Capital Stack

Project Capitalization

The total development budget is $36 million, which will be capitalized by $8.8 million of equity, $2 million of subordinated debt, and $25.2 million in construction debt.

The $8.8 million equity raise will enable us to acquire the parcels and complete the entitlements free and clear of any debt positions. This maximizes our flexibility in the occurrence of any market changes.

Construction loans are currently available at up to 80% loan-to-cost, however, we anticipate using subordinated debt to bridge the gap if credit markets shift and there is a need for it.


Construction of the “Nesttun” will include the removal of the existing structures from the 5 individual lots and construction of the new 100,650 sqft building.

The 5 parcels have all been acquired or are in escrow to be purchased. The entitlement phase will continue over the next 18-20 months leading up to the start of construction. The expected timeline for construction is 20 months with the completed building and issuance of the certificate of occupancy expected in December 2022.

Uses of Capital

Land Acquisition $6,300,000 17%
Development $2,500,000 7%
Cost of Construction $21,900,000 62%
Finance Expense $3,400,000 9%
Contingency $1,500,000 4%
Lease-up & Marketing $350,000 1%
Total $35,950,000


Where can I get the PPM & Opperating Agreement?

Please request the PPM by emailing [email protected].

Will Trueline Capital Fund II be investing in this project?

No, it will not be investing in this project. The Nesttun development is a stand-alone development group and investment. If you are a Fund II investor you will not have any extra risk associated with this project.

What is the address of the project?

The project is located on the North West intersection of 15th Street and 70th Street in the Ballard neighborhood of Seattle.

The five parcels include:
– 7001 15th Ave NW
– 7011 15th Ave NW
– 7017 15th Ave NW
– 7023 15th Ave NW
– 7027 15th Ave NW

Who is providing the construction loan and what are the terms of the loan?

The Company will obtain a construction loan commitment from a commercial bank in fall 2019. Several banks have expressed an interest in providing the loan, exact financing terms will be finalized at that time.

Are the IRR and Equity Multiple figures net or gross?

They are net, meaning they are actual cash-on-cash yields on the investment, assuming the investment term and a liquidation event at the end of the project.

Do you believe your construction contingency is large enough?

Yes, the project budget includes a $1.5 million contingency. This is about 6.5% of the construction budget. We based our budget on real actual costs seen on the Werner project and then inflated those by 10-15%, then added a 6.5% contingency on top of that.

We also are going to operate as an owner builder, allowing us to make diligent changes to hit our budgets.

We want to make sure we do address that there are real shortages of labor in the city. We have given our most up-to-date figures on the items that might be under risk and based them on real figures given to us by the subs that will be completing the work.

When are you expecting entitlement completion?

We are expecting the entitlement process to finish in Q1, 2020. We are currently started in the entitlement process and are about 4 months into the design review process.

After we have the design review completed, we will then go through the land use process, and finalized with the building permit process.

When does the preferred return begin?

All capital will be class B equity units and the preferred return will start at the time of investment for each investor.

What is the relationship between Trueline Capital, Vivia Group, and Lev Vel?

Trueline Capital and Lev Vel have partnered on a few separate projects including both multi-family and single family projects.

The three companies have partnered in the project an will be investing $800,000 of the total equity raise.

Some of the rents look like they might be set out for low income rentals, is there an ability to raise these rents as time goes on?

We were conservative in the rental rates, but will not be offering city-sanctioned “affordable housing”. This model allows for a better rental rate out of the gate but does allow for increased rental rates as we progress down the timeline.

Will you have natural disaster insurance on the build?

Yes, we will be looking into purchasing this with the builder’s package once the permits are approved.

Do you plan to rent restrict or just pay the MHA tax in the city?

We have opted to pay the tax. Based on our market research with models of year one income, if we pay the tax we will earn an approximate $200,000.

Is there a forced capital call mechanism in the project?

There is no forced capital call mechanism included in this project. However, if a capital call seems needed we will have a meeting with investors and decide on an appropriate course of action if extra capital is needed.

Is there an institutional investor with an equity position in this development?

This is an institutional grade project and we are pursuing institutional capital to invest alongside individual investors as part of the $8.8 million equity raise.

It is unusual to be able to offer this type of project to individual investors, we wanted to make sure we gave an opportunity to our investor base as well as individual accredited investors.

Is there a mechanism for an investor to exit early?

According to the documentation, there is no public market for this investment. We ask that you are in this project to completion.

In the event of material changes in the market, we do have some options to liquidate the project prior to construction and believe we can generate attractive returns to investors if this path becomes the prudent way forward.



Lev Vel
3445 16th Ave W. Suite 1
Seattle, WA 98199
Contact: Brandon Kamin


Diagonal D LLC
2514 W McGraw St.
Seattle, WA 98199
Contact: Diana Wellenbrink AIA, LEED AP

Landscape Architect

Studio 342 Landscape Architecture, LLC
P.O. Box 972
Edmonds, WA 98020
Contact: Chad Wichers. ASLA

Acquisition Partners

Vivia Group
3445 16Th Ave W, Suite 3
Seattle WA, 98119
Contact: Morgan Royse