October 2015 — Multifamily Properties Quarterly —
Page 27
A
concierge, pet spas, bowling
alleys, rooftop pools, barre stu-
dios and drop-in workstations:
Although these may sound
like the features of a luxury
resort, this is actually the new reality
for many recently built multifam-
ily communities. Gone are the days
when having a washer and dryer in
your unit is considered a viable dif-
ferentiator to market to potential
tenants. However, in the increasingly
competitive apartment market, one
of the most desirable amenities is
more efficient to deliver than devel-
opers may think.
With the rise of rental demand
over the last five years, the school
of thought in many markets is cen-
tered on delivering a mega-product
that creates a community within
the complex laden with extravagant
amenities. Although fun in theory,
this requires larger infill sites and
increased developer investment, and
it swells already record-high rental
rates.
However, as we’ve experienced,
there’s a second school of thought
in which developers can be competi-
tive in this landscape without joining
the so-called amenities war. There
is a sweet spot for the development
of smaller apartment buildings that
add to the surrounding neighbor-
hood rather than create it.
In the past five years, we’ve deliv-
ered six projects centered on this
philosophy. Each building was devel-
oped on a smaller urban infill site,
close to mass transit and under 100
units. The most important amenity
for these tenants? Living in the heart
of a flourishing downtown area.
With the ongoing
investment munici-
palities are making
in creating thriv-
ing urban areas
rich with eat, shop
and play options,
there is a lessening
need for multifam-
ily communities
to deliver on all of
these fronts. When
you root a living
experience in the
midst of an estab-
lished and vibrant
community, you
decrease the necessity to create that
community. Rather than tying ten-
ants to the offerings of their specific
building, the tenants are given the
opportunity to enjoy the surrounding
amenities and culture of their city.
In following this approach, devel-
opers can make better use of urban
land supplies and existing infra-
structure. This allows for strong infill
redevelopment with less potential
barriers on site size and parcel con-
figuration and more focus on func-
tional form. This philosophy sup-
ports the development of land that
would otherwise be restrictive and,
even more so, supports the business-
es and culture of these urban areas.
When we provide the “live” element,
businesses then get the advantage of
residents stimulating the eat, shop
and play options they are providing.
From 2011 to 2014, we worked
closely with the city of Loveland
and the Loveland Urban Renewal
Authority to deliver The Gallery
Flats, a 66,000-square-foot, 66-unit,
100-bed apartment in the center of
downtown Loveland. This project
was the first catalyst of a larger plan
to enhance the vitality of the down-
town culture while creating an urban
living option for residents. With its
completion, more citizens can live
the downtown lifestyle and busi-
nesses received an automatic boost
from the newfound customer base
living at their doorstep.
“The city of Loveland had a vision
to revitalize our downtown through
the creation of a project that sup-
ported a walkable and vibrant
lifestyle,” said Cecil Gutierrez, the
mayor of Loveland. “To achieve this,
we were committed to finding a
high-quality developer to serve as
a partner to bring this vision to life.
Through the efforts of the city, Urban
Renewal Authority and Brinkman
Partners, the end product did just
that. The Gallery Flats has created
a high-density redevelopment that
enhances the downtown culture
through an active urbanism that
stimulates the existing dining, shop-
ping and art economies.”
In today’s rental market, there is
room for both schools of thought; it’s
up to developers to decide in which
arena they can be most successful.
There’s still a healthy market of resi-
dents seeking larger, amenity-driven
complexes. On the flipside, there also
is a strong pool of renters who want
to take advantage of the amenities
that they can see right outside their
window.
s
Jay Hardy
Senior vice
president of
development,
Brinkman Partners,
Fort Collins
Developer Spotlight
The Gallery Flats is a 66,000-square-foot, 66-unit, 100-bed apartment in the center of
downtown Loveland that was the first catalyst of a larger plan to enhance the vitality
of the downtown culture while creating an urban living option for residents.
