SEATTLE — Three years after Seattle voters approved the creation of a publicly owned social housing developer — and later approved a new tax on high earners to fund it — the organization has made its biggest move yet: purchasing a luxury apartment building steps from Pike Place Market for $60 million.

The acquisition of the Elara at the Market marks the first major property purchase by the Seattle Social Housing Developer, which plans to convert the 150-unit building into permanently affordable housing.

Supporters argue the deal reflects the financial reality of building housing in Seattle’s expensive market and may ultimately cost less than constructing a similar project from the ground up.

“We were going out to look for acquisitions as our first step in the social housing developer’s portfolio because it is something where we can get residents quickly,” Seattle Social Housing Developer CEO Tiffani McCoy said. “We are able to show the concept quicker than we would through new construction.”

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McCoy said the organization intentionally targeted what she described as a “Class A asset,” a building without major deferred maintenance or repair needs, in a highly desirable neighborhood where lower-income residents typically cannot afford to live.

Longtime resident Lauren Boyan said she first learned about the purchase through a text message from another tenant after residents received letters explaining the transition.

“My friend Melissa, who lives on the bottom floor, texted me the letter, and we both discussed whether or not this was real,” Boyan said.

Boyan, who has lived in the building since 2021, praised the location and quality of the apartments.

“I really like how it’s centrally located,” she said. “Everything I like is within walking distance. It’s close to transit.”

Asked about the “luxury” label attached to the building, Boyan laughed at the description.

“I mean, it’s a newer build. The appliances work,” she said. “To me, that’s a luxury, I guess.”

McCoy defended the decision to purchase a higher-end apartment complex rather than an older or cheaper property. The acquisition works out to a per-unit price of roughly $400,000. Multiple analyses have suggested it could cost between $300,000 and $400,000 to build an affordable housing unit from scratch.

“Everyone deserves to live in high-quality housing,” she said. “What do we mean by luxury? Is it having access to a washer and dryer? Is it having access to common space? Is it having access to housing that doesn’t have mold or pests?”

McCoy said the organization is trying to avoid the mistakes that have plagued some public housing systems for decades by purchasing buildings that can remain stable long term without major capital investments.

“These housing units are permanent social housing fixtures,” she said. “We can never sell off these buildings.”

The purchase was financed through voter-approved funding measures passed in 2025, including a tax on businesses with highly paid employees. McCoy said revenue from the tax has significantly exceeded initial projections.

“The first installment of this revenue source hit our bank accounts in March of this year,” McCoy said. “I just think that goes to show there is a lot of wealth in our city.”

According to the developer, current tenants will not be displaced. Rents will be frozen for two years, some fees will be eliminated, and residents will receive free ORCA transit passes.

A public lottery for vacant affordable units also opened Friday. The first available apartments will go to residents earning less than 30% of the area median income, followed by those earning between 30% and 50% of the area median income. Eventually, the organization plans to serve residents earning anywhere from zero to 120% of the area’s median income.

Boyan, who voted in favor of the original social housing initiative, said she strongly supports the broader mission behind the program.

“I’m very much in support of Seattle being a community that can actually be a community,” she said. “That involves people of all different incomes, all different backgrounds.”

She added that maintaining affordability in neighborhoods near downtown and Pike Place Market is critical to preserving Seattle’s cultural identity.

“This neighborhood, in particular, is super important for art and culture,” Boyan said. “Having a pathway for people to be able to afford to live here is super important.”

Still, Boyan said she hopes the agency is prepared for the operational realities that come with managing housing at this scale.

“I would be more concerned with how the actual management of it is going to go,” she said. “What’s the actual plan?”

“I hope they’re thinking through the surprises,” she added.

The Seattle Social Housing Developer said it hopes to purchase another apartment complex before the end of the year while simultaneously launching its first new-construction projects. McCoy said future developments will prioritize larger, family-sized units, including two-, three- and four-bedroom apartments, which she argues are largely missing from Seattle’s current housing market.