Redmond Breaks Ground on 328 Units, Microsoft-Backed

Prisma Redmond: 328 Homes, Site, Groundbreaking Date

As Redmond’s housing costs continue to tighten, Bellwether Housing broke ground on Prisma Redmond on Thursday, February 20, 2026. Similar zoning reforms like the MBTA Communities Law are pushing transit-adjacent multifamily projects onto surplus land nationwide.

Project details are tracked through the DJC Resource Center’s bids and awards listings.

Timeline Pressure

Construction commenced in 2025 after 2024 to 2025 outreach, design, and permitting.

The construction timeline targets early 2028 completion, revising 2027 opening milestones.

Walsh Construction is the builder, with Microsoft and Amazon backing the $171 million project.

Site and Design Disruption

Prisma Redmond will rise at 2888 Da Vinci Ave NE directly beside the Overlake Village rail station.

The six-story mixed-use plan provides 328 homes, from studios to three bedrooms.

Design features include active ground-floor small business incubation space.

Design features also include culturally informed community services near shops, parks, and schools.

Sound Transit supplied surplus land at a discount to support transit-oriented development.

Prisma Affordability: AMI Bands, Max Rents, Income Caps

Although Prisma Redmond spans a wide 30 percent to 80 percent of Area Median Income across 328 apartments, eligibility will be enforced at the unit level through income caps tied to each AMI tier.

Income Caps and Tiered Rents

Total household income must stay at or below the AMI limit for the selected unit during the Verification Process.

Maximum rents are then set by that tier, keeping prices below East King County levels.

In a region shaped by rising rents, tiered affordability can help stabilize housing options for households squeezed by the broader affordability crisis.

Deep Affordability Under Regional Pressure

Roughly 55 homes target 30 percent AMI.

Studios to three-bedroom units span the broader 30 to 80 percent bands.

Ten apartments include ADA design and supports for residents with physical, intellectual, or developmental disabilities.

This comes amid a shortage of 28 rentals per 100 extremely low-income households.

Who’s Funding Prisma: Bellwether, Microsoft, Amazon

Affordability at the unit level is only enforceable if the capital stack holds through a full development cycle.

Capital Stack Under Stress

Bellwether Housing is the nonprofit developer and owner.

The project budget is currently about $171 million.

1. City of Redmond: $1 million.
2. King County: $5 million pre-commitment plus $1.15 million proposed match.
3. Washington Housing Finance Commission: bond cap eligibility, with Sound Transit land discounted.

Corporate Money, Limited Disclosure

The deal is described as Microsoft-backed, signaling corporate philanthropy alongside public subsidy.

Specific Microsoft dollars and any naming rights terms were not disclosed in the confirmed funding summary.

Amazon is often cited in the region’s housing philanthropy ecosystem.

No Amazon commitment is listed among the documented partners, leaving corporate participation opaque through completion in 2028.

Why Prisma Is Next to Overlake Light Rail

Because Sound Transit surplus land became available at a steep discount, Prisma’s site selection locked directly onto the 2 Line Overlake Village Station footprint.

Parcel A is 2.4 acres at 2888 Da Vinci Ave NE, previously used for light rail staging.

It sits on the north side of NE Shen Street, west of 152nd Avenue NE.

Disrupted Land Economics

$250,000 for King County Parcel 644895-0020 undercut a $30 million market estimate and reduced land cost risk.

The compact footprint supports transit oriented design with limited dependence on road access.

Transit Connectivity and Station Activation

The building sits immediately beside Overlake Village Station, enabling a direct pedestrian connection across NE Shen Street.

Ground floor commercial and a linear park link are planned to boost Transit Connectivity and Station Activation.

How Prisma Impacts Eastside Supply and the Pipeline

Prisma’s station-adjacent siting converts a rare land discount into immediate Eastside supply gains.

It adds 328 affordable homes serving households at 30 to 80 percent AMI, with emphasis at 50 percent AMI or less.

Supply Shock Near Overlake

Supply elasticity improves because a $30 million parcel was conveyed for $250,000.

That discount reduces rent pressure at delivery.

The unit mix includes studios through three-bedroom homes, totaling about 505 bedrooms.

It also includes disability set-asides.

Pipeline Disruption and Timing Risk

Front-loaded public investment and permit streamlining compress the schedule from 2025 starts to early 2028 occupancy.

That acceleration shifts both timing and expectations for nearby projects.

The pipeline impact is defined by three factors.

First, six-story mixed-use density on a vacant lot.

Second, ground-floor commercial activation replacing likely commercial reuse.

Third, $168.5 million to $171 million in capitalization, attracting replicable transit-oriented funding regionally and fast.

Assessment

Prisma Redmond adds 328 planned homes to an Eastside market strained by limited new supply.

Backers including Bellwether, Microsoft, and Amazon signal continued reliance on private capital to expand income-restricted housing.

The site’s proximity to the future Overlake light rail station positions the project for transit-oriented demand while pressuring nearby rents during lease-up.

Its affordability tiers will be closely watched as a benchmark for subsequent pipeline deals in Redmond and across the region going forward.

https://www.unitedstatesrealestateinvestor.com/redmond-breaks-ground-on-328-units-microsoft-backed/?fsp_sid=32461