Industry: Multifamily Housing
Challenge: Delivering a 148-unit Class A multifamily community in a growing but supply-constrained market while navigating challenging site conditions, entitlement requirements, environmental considerations, and evolving market dynamics.
Results: Telka Apartments reached stabilization in just 11 months, faster than the typical 12–18-month timeline for comparable multifamily developments, and achieved above-proforma rental rates while maintaining strong occupancy.
Project Details
Telka Apartments is a 148-unit, garden-style multifamily community located in Silverdale, Washington.
Delivered in 2022, the project spans a 7.18-acre site and includes approximately 104,472 square feet of net rentable area across a mix of studio, one-bedroom, and two-bedroom apartments. Residents enjoy a full suite of amenities, including:
- A clubhouse
- A fitness center
- A swimming pool
- Outdoor recreation spaces
- Ample parking
From acquisition through stabilization, the project followed a typical three-year development timeline, demonstrating Rush Development’s ability to execute across every phase of the development lifecycle, from site acquisition and underwriting to construction, lease-up, and long-term asset management.
Why Silverdale Was the Right Market
Rush identified Silverdale as an attractive multifamily market due to several converging factors:
- Strong population growth throughout Kitsap County
- Access to major employment centers, including Bangor Naval Base and St. Michael Medical Center
- Ferry connectivity to the Seattle metro area
- Limited new Class A apartment supply
- Growing affordability challenges in nearby urban markets driving renter migration into suburban communities
Together, these indicators pointed to sustained housing demand and an opportunity to deliver a high-quality apartment community in a market with favorable long-term fundamentals.
Securing the Site
The development opportunity originated through the acquisition of surplus land owned by the Central Kitsap School District. Rather than a traditional brokered transaction, Rush Development successfully navigated a formal public bidding process to secure the site.
The acquisition reflected our ability to identify unique opportunities and leverage local market knowledge to source projects with strong long-term potential.
The Challenge
While the market opportunity was compelling, Telka presented several complex development challenges that required careful planning and coordination.
Site Constraints and Environmental Considerations
The property’s steep topography created significant design and construction challenges. The team needed to carefully apply ADA accessibility standards while maintaining efficient circulation throughout the site.
Additionally, the site’s proximity to wetlands required specialized stormwater management strategies during construction, particularly during Washington’s winter months. These environmental considerations had to be balanced against project timelines, budgets, and development goals.
Entitlement and Coordination Challenges
Project approvals required a secondary off-site access road to satisfy fire marshal requirements. Delivering that infrastructure involved coordinating with multiple neighboring developers who were operating on different construction schedules.
Managing these moving pieces required proactive communication and a collaborative approach among all stakeholders to keep the project progressing toward delivery.
Managing Risk Before Breaking Ground
Before construction began, the team conducted extensive feasibility analysis that included:
- Market and rent-comparable studies
- Absorption and supply pipeline analysis
- Unit mix optimization
- Detailed budgeting and contingency planning
- Site planning focused on accessibility, environmental constraints, and maximizing unit yield
This disciplined underwriting process allowed Rush to identify potential risks early and address them before bringing investment partners into the project.
The Solution
A Vertically Integrated Development Approach
One of the defining advantages of Telka Apartments was the collaboration between Rush Development, Rush Commercial, and Edison47, The Rush Companies’ residential property management division.
Because the development and construction teams worked within the same organization, they were able to collaborate more effectively during both pre-construction and construction. Key benefits included:
- Enhanced transparency during budgeting and value engineering
- Faster decision-making through direct collaboration
- Alignment between development and construction objectives
- Design decisions informed by long-term ownership considerations
- Property management insights incorporated into design and construction planning
This integrated structure helped reduce risk, improve efficiency, and ensure decisions were made with long-term asset performance in mind.
Thinking Like an Owner
Unlike traditional development models where stakeholders often operate independently, Telka benefited from aligned incentives across the organization.
Construction decisions were evaluated not only for immediate cost and schedule impacts, but also for how they would affect long-term operations, maintenance requirements, and resident experience.
This owner-focused mindset helped create a product that would perform well beyond initial lease-up and stabilization.
The Results
Faster-Than-Market Stabilization
Lease-up performance exceeded expectations.
Driven by strong demand for new housing in Silverdale, Telka reached stabilization in just 11 months, outperforming the typical 12- to 18-month stabilization period for comparable multifamily developments in the market. The community also achieved rental rates above original pro forma projections.
Strong Occupancy and Competitive Rental Performance
Even as additional multifamily inventory entered the market, Telka maintained strong occupancy and competitive rental rates.
These outcomes reflected both favorable market fundamentals and the Rush team’s ability to position the asset effectively through thoughtful design, strategic pricing, and disciplined execution.
Professional Property Management From Day One
Following completion, Edison47 worked closely with Rush Development to execute the lease-up strategy. The partnership enabled:
- Real-time coordination between ownership and management
- Responsive pricing and concession strategies
- Market-informed leasing decisions
- Efficient absorption and occupancy growth
The result was a seamless transition from construction to operations, helping the asset achieve stabilization quickly while maintaining strong long-term performance.
“Edison47’s local market expertise, combined with Rush’s deep familiarity with the Silverdale submarket, helped position the asset competitively from day one, ultimately contributing to stable occupancy and efficient absorption during stabilization.” – Maverick Esser, Land Acquisition Associate, The Rush Companies
Delivering Through Complexity
Despite challenging site conditions, environmental requirements, and entitlement hurdles, the project team successfully managed cost and schedule impacts throughout development.
The finished community was well received by residents and the surrounding community, leased quickly, and continues to perform strongly as a long-term asset.
The Rush Difference
Telka Apartments demonstrates far more than successful execution on a single project. It showcases The Rush Companies’ ability to identify, develop, construct, and stabilize multifamily assets through a disciplined, vertically integrated approach that has delivered results for nearly four decades.
“By maintaining majority ownership and integrating development, construction, and management, the team is able to provide clear, consistent visibility into project performance, key decisions, and evolving risks from start to finish.” – Levi Nelson, Development Manager, The Rush Companies
From acquisition through stabilization, the project reflected our repeatable development model built on deep regional market knowledge, conservative underwriting, thoughtful site planning, and seamless collaboration across development, construction, and property management teams.
By integrating these disciplines under one platform, the team was able to make faster decisions, proactively manage risk, and maintain alignment throughout the project lifecycle.
Key strengths demonstrated by the Telka development include:
- Identifying opportunities in supply-constrained secondary markets
- Applying disciplined underwriting and risk management practices
- Coordinating development, construction, and property management under one integrated platform
- Delivering consistent, risk-adjusted outcomes from acquisition through stabilization
- Maintaining a long-term ownership mindset that prioritizes sustainable asset performance
Despite challenging site conditions, construction cost volatility, and increasing competitive supply, Telka achieved strong occupancy, competitive rental rates, and stabilization ahead of typical market timelines. These outcomes reflect the same principles that have contributed to our track record of no failed deals since 1987.
For investors evaluating a first partnership with Rush, Telka illustrates a transparent, hands-on approach that emphasizes proactive communication and long-term value creation. The result is a proven development platform designed to deliver predictable outcomes for partners, residents, and the communities we serve.
Interested in partnering on your next multifamily development or investment opportunity? Contact Danny Kruse directly to learn how our integrated development, construction, and property management expertise can help bring your vision to life.