|
COVER STORY, AUGUST 2008
FOR RENT
Apartment properties agree with integrated land use and lifestyles, and savvy developers know it.
Brian A. Lee
A slow single-family residential market, rising fuel costs, an increased development focus on mixing uses and renewed interest in urban living are just a few major reasons the West's apartment sector is distinguishing itself.
Aquatera
 |
H.G. Fenton Company's Aquatera in San Diego
|
|
With a portfolio of 11 San Diego multifamily communities totaling 2,800 apartment homes, hometown developer H.G. Fenton Company is an expert on both the market and the product. In spring 2009, the developer will be adding the last expert touches on its latest apartment creation, Aquatera, in San Diego’s Mission Valley.
“[It will] best serve the needs of residents who now more than ever before want quality, for-rent housing options with a full-spectrum of on-site and nearby lifestyle amenities,” says Mike Neal, president and CEO of H.G. Fenton Company. “The community was appropriately called Aquatera to reflect the rich, flowing lifestyle it will offer as well as the history and character of the site, a former quarry.”
Aquatera will offer well-appointed one-, two- and three-bedroom apartments, ranging from 729 to 1,394 square feet. The 254-unit property is sure to dazzle residents with its design and keep them happy with a long list of amenities. True to its name, Aquatera will quench residents’ thirst for a unique sense of place with numerous water features such as a cascading waterfall on a terraced hillside and a well fed by underground aquifers. Project designer Architects Orange created the soothing water theme.
Having broken ground on the project in fall 2007, H.G. Fenton Company has a goal of completeness that goes well beyond Aquatera’s completion. “The lifestyle and fitness amenities featured at Aquatera have been chosen to meet virtually every need of the residents right at home,” says Neal. Residents will enjoy a fully equipped sports club, a Cyber Café and an elaborate 10,000-square-foot club room, featuring a professional gourmet kitchen, pool table and media center. The grand, resort-style pool will be framed by a luxurious sun deck complete with cabanas, barbecue islands, an outdoor fire pit and a spa.
“[We] believe that quality for-rent housing is an important part of San Diego’s housing options,” says Neal.
H.G. Fenton’s commitment to the area — it owns and manages three other apartment communities in Mission Valley — has its limits, as in responsibly limiting the multifamily development and operational impact on its hometown’s environment.
“Aquatera will feature a 216-kilowatt photovoltaic solar energy system that will generate 90 percent of the projected electrical usage for all common areas and amenities,” says Neal. “The swimming pool will be powered by solar energy as well, and the landscaping has been designed to minimize water usage through the use of state-of-the-art irrigation systems and planters.”
ARC's Phoenix Foray
 |
Starting construction next month, the 16th Steet & Campbell Avenue project represents Alliance Residential Company's initial move into downtown Phoenix.
|
|
With residential demand continuing to grow for the convenience of downtown living, Alliance Residential Company (ARC) has picked a good time for its foray into the core of Phoenix with a 240-unit luxury apartment project at 16th Street & Campbell Avenue, which will start construction next month.
“This development, the first of Alliance’s urban product in the Phoenix market, is a high-density, infill project that will have open floor plans with luxury finishes and amenities that this market demands,” says Michael Trueman, development partner at ARC in Phoenix. “As the length of commuting continues to increase, the price of fuel continues to rise and the introduction of light rail, the timing of this project will be ideal.”
Slated for completion in 2010, the $35 million development will feature one- and two-bedroom units averaging 785 square feet. The five-story property will include a floor made up predominantly of two-story loft units, a partially submerged parking structure and a detached two-story, 2,300-square-foot fitness center that overlooks the boutique, resort-style pool and spa area. Also, residents will enjoy a 2,700-square-foot recreation clubhouse/social lounge and a wireless cyber café with coffee bar.
The second largest apartment developer in the country, ARC will include the property in its Broadstone family of developments.
“Alliance’s focus is currently on the urban-infill projects to respond to the advantages of density and close proximity to amenities and employment centers,” says Trueman. “Specifically, this property will directly serve the Camelback Corridor.”
Pacific Bay Vistas
In late June, AIMCO’s 510-unit Pacific Bay Vistas multifamily project in San Bruno, California, was approved. Situated on the southwest corner of Skyline Boulevard and Sharp Park Road, the apartment community will offer views of San Francisco Bay. Views of the development itself will be enjoyable as well, with its highly articulated architecture and complementary landscape palette giving off a welcoming, village feel. Newport Beach, California-based Newman Garrison Gilmour + Partners Architectural and Planning firm is the project architect.
The developer and architects are utilizing renewable resources, reclaimed materials from the previous building, Energy Star appliances, and low VOC carpeting and paint for this project.
MULTIPLE REASONS FOR MULTIFAMILY
With new investment, signs of economic vitality and ongoing job growth across nearly all sectors, the Western United States certainly expects a stronger future. According to the U.S. Census Bureau, jobs in the western region in the past year have grown by 2 percent, twice as high as the national job growth average.
Seattle has approximately 35,000 new residents migrating there each year, ensuring a built-in housing demand. Seattle’s employment growth and strong economy are positioning the area as a center of economic expansion and business investment. The median price of a condo has actually increased year over year as of July 2008.
Areas where prices have dropped have provided incentives for buyers. With price drops as high as 23 percent in San Diego in the past year, first-time buyers are finding it easier to purchase homes. On the other hand, the rental market is flourishing in areas where prices of homes are high. San Francisco remains one of the most expensive areas for homebuyers with a median home price of $755,000 as of March 2008. Renting is much more affordable than buying in the San Francisco area (up almost 9 percent over last year), saving residents an average of $2,000 a month if you rent instead of paying a mortgage.
“The West has proven a great market for multifamily investment,” says Richard Warner, Green Park Financial chief underwriter. “The region has had the strongest rental growth in the U.S. for the past 2 quarters and consistently low vacancy rates.”
The national economy may be experiencing a downturn but the multifamily market in the West is continuing to lead the way in growth.
Ted Patch is senior vice president and chief production officer ofGreen Park Financial in Bethesda, Maryland. |
©2008 France Publications, Inc. Duplication
or reproduction of this article not permitted without authorization
from France Publications, Inc. For information on reprints
of this article contact Barbara
Sherer at (630) 554-6054.
|
