210-unit apartments underway near downtown Spokane

Work to build a 210-unit apartment building near downtown is underway. It will consist of studio, one-bedroom and two-bedroom units and a parking garage.

And not much else.

“It doesn’t have a fitness center or a big, huge common area where you all can gather and watch a sporting event,” said Cathy Reines, founder, CEO and board chairman of Kōz Development. “That’s very intentional.”

The Snohomish, Washington-based architecture and development firm specializes in building workforce housing which, according to the Washington State Legislature, is affordable to households earning between 80% and 120% of the area median income.

But Kōz goes a step further, according to Reines.

“Since starting the company 10 years ago, we’ve focused on providing housing to those individuals in the 60% to 80% area median income,” she said. “There is funding for those 30% and below and there is housing, obviously, for market-rate individuals, but it felt like there were few developers that were really focused on the middle.”

At 308 W. Fifth Ave., the structure will span a roughly 1-acre property just south of Interstate 90 and east of Lewis and Clark High School. It was purchased by Kōz Development in 2022 for about $1.3 million, according to county records.

The building, Kōz on 5th, will be seven stories tall and total about 140,000 square feet. Two stories and about 33,000 square feet will consist of an underground parking garage, Reines said.

Spokane-based Bouten construction was hired as the contractor of the $16 million project. The property is being excavated, according to Tim Thomas, president of Bouten.

“We’ve cleared the site, and now we’re doing mass excavation,” Thomas said. “We anticipate work on the foundation to begin here in the next couple months.”

The firm’s portfolio primarily consists of projects along the Interstate 5 corridor. Kōz on 5th will be the developers’ first project in the Inland Northwest.

Reines said excavation will take longer than what company officials are accustomed to.

“We are running into quite a bit of rock,” she said. “Which is a whole new construction challenge that we’ve never been faced with before.”

Save for the basalt rock lying underneath, the lower South Hill property is ideal for a workforce development, she said.

“We have been watching the Spokane market for a number of years, looking for a site that meets our selection criteria,” she said. “It’s close to transit and near coffee shops, bars, restaurants and grocery stores. Its high walkability makes this site a perfect fit.”

Thomas, born and raised in Spokane, is glad to see the plot developed.

“That site has sat vacant for so many years,” he said. “Before we fenced it off and started cleaning it up, it was used for tent camping and that kind of thing.”

The building will be U-shaped, surrounding a courtyard on its third floor. The design is reminiscent of another Bouten project, the Warren Apartments, Thomas said.

The 139-unit residential project at 206 W. Riverside Ave. won an award from the Downtown Spokane Partnership for its impact on the downtown core.

“Like the Warren, this is an opportunity for people to live in a high-quality housing,” he said.

“It’ll be a nicer neighborhood when it’s all said and done. And as we know, housing is needed in Spokane, and what Kōz is doing will contribute to that need.”

Reines said that despite its rocky soil, Spokane has been favorable to Kōz.

“The individuals that we’ve worked with at the city through the permitting process have been phenomenal,” she said. “We feel fortunate to work with a city that is as progressive and business friendly as Spokane has been.”

Location is important to the firm, considering it doesn’t typically develop buildings with the intent to sell, she said.

“We manage our own properties, so we are building this to hold it,” she said. “We intend to be a part of the community for years to come.”

Kōz on 5th is intended to be completed in summer 2026, according to Reines.