MHR Capital Group has released plans for Phase II of its master-planned hospitality and entertainment district in Kennewick, Washington, adding a large mixed-use residential component to the emerging area. The next phase, branded as The District Residences, is positioned to build on recent investment around the Three Rivers Convention Center and the new AC Hotel by Marriott Kennewick.
The District Residences is envisioned as an urban-style development with approximately 436 residential units supported by integrated ground-level retail, structured parking, rooftop amenities, and pedestrian-focused public spaces. According to current conceptual plans, the project would encompass roughly 642,000 square feet of total development across residential, retail, amenity, and parking uses, creating a substantial new node within Kennewick’s growing entertainment district.
The residential program is planned to include a mix of studio, one-bedroom, two-bedroom, and three-bedroom units, targeting a range of households seeking walkable access to nearby hospitality and entertainment venues. The integration of retail and common areas is intended to activate the streetscape and support an environment where residents, hotel guests, and event attendees can interact in shared gathering spaces.
The project site lies adjacent to several of the Tri-Cities region’s key demand drivers, including the Three Rivers Convention Center, the Toyota Center arena, and the AC Hotel by Marriott. By situating new residential density next to these venues, The District Residences is planned as a continuation of MHR Capital Group’s broader vision to establish a cohesive, multi-use destination that links lodging, events, dining, and housing within a single walkable district.
The development is located within a federally designated Opportunity Zone, which may offer long-term tax advantages to eligible investors who meet program requirements. This designation adds a capital formation dimension to the project, aligning the mixed-use plan with federal incentives aimed at encouraging new investment in targeted areas. As conceptual planning advances, The District Residences represents a significant planned expansion of both housing and complementary uses in Kennewick’s entertainment-focused growth corridor.
