MHR Capital Group Unveils Phase II Vision for "The District Residences" Mixed-Use Development in Kennewick

KENNEWICK, Wash., May 26, 2026 /PRNewswire/ -- MHR Capital Group today announced plans for Phase II of its master-planned hospitality and entertainment district in Kennewick, Washington, with the introduction of The District Residences, a large-scale mixed-use residential development designed to further transform the area surrounding the Three Rivers Convention Center and the new AC Hotel by Marriott Kennewick.

The conceptual design study for The District Residences outlines a dynamic urban-style development featuring approximately 436 residential units, integrated retail space, structured parking, rooftop amenities, and pedestrian-oriented gathering spaces within Kennewick's growing entertainment district.

The proposed development includes a mix of studio, one-bedroom, two-bedroom, and three-bedroom residences, along with premium upper-level units and extensive amenity offerings designed to support a vibrant live-work-play environment. Current conceptual plans envision approximately 642,000 square feet of development, including residential, retail, amenity, and parking components.

According to the conceptual study, the project is planned to include:

• Approximately 436 residential units
• Ground-floor retail and restaurant space
• Structured and below-grade parking
• Rooftop amenities and courtyard spaces
• Integrated pedestrian connectivity to the surrounding entertainment district

Strategically positioned adjacent to the Three Rivers Convention Center, Toyota Center, and the AC Hotel by Marriott, The District Residences represents the next phase in MHR Capital Group's long-term vision for creating a vibrant mixed-use destination in the Tri-Cities region.

Importantly, the project is located within a federally designated Opportunity Zone, creating potential long-term tax advantages for eligible investors. Opportunity Zone investments can provide significant benefits, including the potential deferral of capital gains taxes and the opportunity for tax-free appreciation on qualified investments held for the required investment period, subject to applicable federal tax laws and investor eligibility.

"This project reflects our commitment to building an integrated destination that combines hospitality, entertainment, residential living, and community gathering spaces," said Kamran Hasan, CEO of MHR Capital Group. "The District Residences is intended to bring a new level of urban residential experience to Kennewick while supporting the continued growth of the Tri-Cities economy."

The development concept also contemplates future senior housing, additional retail opportunities, expanded public gathering areas, and enhanced walkability throughout the district.

MHR Capital Group continues to collaborate with the City of Kennewick and the Kennewick Public Facilities District as part of the broader master-planned vision for the convention and entertainment district expansion.

The announcement follows continued progress on the adjacent AC Hotel by Marriott and expansion of the Three Rivers Convention Center, both of which are expected to serve as major catalysts for regional tourism, economic development, and downtown activation.

For additional information about MHR Capital Group and its development portfolio, visit MHR Capital Group

About MHR Capital Group

MHR Capital Group is a real estate investment and development firm focused on hospitality, mixed-use, multifamily, and commercial projects throughout the United States. The company is committed to delivering transformative developments that create long-term value for communities, investors, and strategic partners.

Media Contact:
Sofia De La Cruz
MHR Capital Group
(425) 800-6208
[email protected]

SOURCE MHR Capital Group