A convention and hospitality district taking shape in Kennewick, Washington, is set to expand into residential development, as MHR Capital Group unveiled plans for The District Residences, a large-scale mixed-use project designed to extend activity around the city’s growing entertainment corridor.
Planned as Phase II of the company’s broader master-planned district surrounding the Three Rivers Convention Center and the new AC Hotel by Marriott Kennewick, the proposal introduces housing, retail, public gathering areas, and pedestrian-oriented spaces into an area increasingly positioned as a regional destination for events and hospitality.
The conceptual design study outlines approximately 436 residential units across a mix of studio, one-bedroom, two-bedroom, and three-bedroom layouts. Upper-level premium residences, rooftop amenities, courtyard spaces, retail frontage, and structured parking also form part of the preliminary plans.
Current concepts envision roughly 642,000ft2 of development across residential, retail, amenity, and parking components.
Residential phase expands the convention and hospitality district
The proposed development will be located adjacent to the Three Rivers Convention Center, the Toyota Center, and the AC Hotel by Marriott, currently under development. Together, the projects form part of a wider district strategy combining hospitality, entertainment, residential uses, and public spaces within a connected mixed-use environment.
The residential phase is intended to support more continuous activity across the district through permanent housing, street-level retail, restaurant spaces, and integrated pedestrian links.
The concept also includes rooftop amenity areas, landscaped communal spaces, and plans for enhanced walkability throughout the surrounding district.
According to the proposal, future phases may also incorporate senior housing, expanded public gathering areas, and additional retail opportunities as the district evolves.
Development planned within a federally designated Opportunity Zone
The District Residences site is located within a federally designated Opportunity Zone, a programme designed to encourage long-term investment in designated areas through tax incentives tied to eligible capital gains investments.
Under the current framework, qualifying investors may benefit from deferred capital gains taxes and potential tax-free appreciation on eligible investments held for the required period, subject to applicable federal regulations and investor eligibility requirements.
MHR Capital Group said it continues to collaborate with the City of Kennewick and the Kennewick Public Facilities District as part of the broader expansion of the convention and entertainment district.
The announcement follows ongoing progress on the adjacent AC Hotel by Marriott and the expansion of the Three Rivers Convention Center, both expected to play a central role in the area’s tourism and economic development plans.
