Ten Capitol Hill and Central District-area projects beating the Seattle development freeze

Coming to E Olive Way

With an ongoing housing affordability crisis and a development landscape across the city, Capitol Hill, and the Central District that has been frozen by challenges around interest rates and inflation construction costs, it might feel like Seattle will never be able to build its way out of trouble. News that a long-pushed “neighborhood center” growth plan that would open the way for denser development in more parts of the city will be further delayed won’t help.

There are empty lots and stalled plans. One of the most prominent dead spots is where the old Olive Way Improvement Company building used to stand. The corner block of Denny and E Olive Way has been cleared for years but the development project, like most others, remains locked in economic purgatory.

There is also hope. On Capitol Hill, a new eight-story apartment building under construction at Broadway and Pine as part of the Constellation Center affordable housing, youth education, skills training, and employment academy project in partnership with YouthCare will open in 2027. There are market rate housing pioneers in this frozen era too. The seven-story Tanager Apartments now rises above the cluster of music clubs and bars it was designed to puzzle-piece together with at 14th and Madison.

Across Capitol Hill and nearby areas, there are rumbles of activity where planning is underway and, sometimes, crews are digging in. The current era of projects is an interesting mix of one of a kind, public-backed projects like the Constellation Center and market rate ventures advancing because of peculiar financing windows and unique opportunities.

Here are ten projects in the area CHS found that continue to move forward despite the frozen conditions.

Ten Capitol Hill-Area Projects Cracking the Development Freeze

1. 1651 E Olive Way
   Permit: 6979957-DM
   Status: Issued (October 9, 2026)
   Valuation: $57,000,000
   Scope: Demolition of the north commercial office building and associated south parking structure to clear the site for an 8-story, 173-unit mixed-use apartment building with ground-floor commercial space and 94 below-grade parking stalls (MUP 3039620-LU).
2. 1121 E Fir St
   Permit: 6782317-CN
   Status: Issued (February 24, 2026)
   Valuation: $16,480,355
   Scope: Construction of a 8-story mixed-use building featuring 118 residential apartment units, and ground-level retail.
3. Fred Hutch Cancer Center (1208 Eastlake Ave E)
   Permits: 7130750-CN and 7143517-CN
   Status: Reviews in Process (Applied September 22, 2026) / Issued (September 17, 2026)
   Valuation: $20,700,000 (Lab expansion) / $650,000 (Shared circulation)
   Scope: Substantial interior alterations and mechanical upgrades to Level 1 of an existing commercial facility to build out expanded wet/dry life science laboratories.
4. 1530 E Fir St
   Permit: 7099881-CN (MUP 3043274-LU)
   Status: Ready for Issuance (Plan review completed September 18, 2026)
   Valuation: $8,204,949
   Scope: Construction of a 6-story, 34-unit apartment building with below-grade parking, developed under religious-organization affordable housing provisions (SMC 23.42.055) for households at or below 80% AMI.
5. 228 11th Ave E
   Permits: 6837439-CN and 6837441-DM
   Status: Issued (June 3, 2026) / Demolition Completed (May 18, 2026)
   Valuation: $6,071,878
   Scope: Demolition of an existing apartment building and construction of a new multifamily apartment building creating 70 residential units.
6. Bertschi School (2227 10th Ave E)
   Permits: 6964136-CN and 6964137-DM
   Status: Issued (April 14, 2026) / Demolition Completed (May 16, 2025)
   Valuation: $3,546,730 (Addition) / $4,132,000 (Demolition)
   Scope: Removal of the former School House structure and site barriers, followed by construction of a multi-level school addition, exterior decks, and alterations to the existing campus building.
7. 1305 E Jefferson St
   Permits: 6801644-DM and 6801643-CN
   Status: Demolition Issued (March 4, 2026) / Construction in Review
   Valuation: $6,000,000 (Demolition) / $5,443,399 (Construction)
   Scope: Demolition of an existing single-story commercial structure formerly home to a succession of short-lived restaurants to advance development of a mixed-use residential apartment building with ground-floor restaurant and retail space.
8. 1312 E Olive St
   Permit: 6981107-CN
   Status: Issued (March 25, 2026)
   Valuation: $2,484,123
   Scope: Construction of a multi-family residential building establishing 9 attached rowhouses.
9. 300 11th Ave E
   Permits: 7065494-CN and 7065495-DM
   Status: Construction Issued (August 28, 2026) / Demolition Issued (March 10, 2026)
   Valuation: $1,922,032 (Construction) / $2,000,000 (Demolition)
   Scope: Demolition of a single-family dwelling and construction of a multifamily building containing 6 attached dwelling units.
10. 1708 & 1710 25th Ave
    Permits: 7091167-CN, 7113564-CN, and 7091168-DM
    Status: Construction Issued (October 6, 2026) / Demolition Issued (September 30, 2026)
    Valuation: $1,943,378 combined construction / $1,330,000 demolition
    Scope: Removal of an existing multifamily building and construction of two separate 3-unit townhouse structures (6 residential units total).

New Hope

How about an 11th that adds a little more hope for affordability in the central city? At 116 21st Ave and 123 21st Ave, construction topped out this summer on the New Hope Family Housing project. The development has created two seven-story buildings on each side of the street on church properties. Combined, the project from the Low Income Housing Institute located on land owned by New Hope Missionary Baptist Church is adding 92 units including 28 two-bedroom apartments. The new housing will serve families and individuals earning up to 50% and 60% of the area median income.

When will more join the growth? While the economic tides play out, Seattle is also considering a plan that would slash Seattle development fees up to 80% — if builders hurry up and break ground.

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