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With 50,000 D-FW apartments under construction, which builders are reaping the benefits?

Steve Brown, Real Estate Editor

With 50,000 apartments under construction in North Texas, there’s plenty of business to go around.

But a couple of builders top the list of the biggest apartment developers in the Dallas-Fort Worth area, according to analyst Axiometrics.

Irving-based JPI led the area in apartment building in 2016, with more than 3,100 units under construction. Dallas-based Trammell Crow Residential was the second-biggest local apartment builder, with almost 2,000 units under construction last year.

JPI topped the apartment-building list in 2015, too.

“Holding the top ranking for most apartment homes under construction for the second year in a row is truly humbling,” said Matt Brendel, senior vice president and development partner at JPI.

JPI just announced plans for two rental projects, in Richardson’s Telecom Corridor and in Farmers Branch.

The two projects include almost 850 apartments.

“We’re constantly evaluating opportunities in the market and are selectively looking for ways to provide our investment partners the best risk-adjusted returns,” Brendel said. “We have identified four or five deals already in 2017 with project costs between $250 million and $300 million.

“We continue to see extraordinary demand for high-quality apartment communities throughout the D-FW metroplex, especially near major employment centers.”

Read more at the Dallas Morning News

Beyond Disney

Anaheim develops a denser, more urban core

January 12, 2017
By Gabrielle Paluch

It’s not all about the Mouse Ears in Anaheim. The constant expansion in and around Disneyland notwithstanding, there is plenty of development in the works — both in the city’s former industrial base, known as the Platinum Triangle, and in its long-neglected historic downtown, now dubbed CtrCity.

The building boom stems from a 2004 rezoning of the area to allow for increased density and more residential development. Experts say that while the rezoning went into effect immediately, the 2008 financial crisis substantially delayed the impact because Anaheim was slow to recover.

The Platinum Triangle is a sprawling 820-acre area to the east of the Disneyland Resort, located between the Santa Ana River and Interstate 5. City planners hope to transform this sparsely populated low-rise commercial corridor into a dense, urban setting with multifamily housing and mixed-use projects. Currently, Platinum Triangle projects worth $4.5 billion are under construction, according to city spokesperson Mike Lyster.

The rezoning also prompted developers to invest in CtrCity, which is located about one mile north. More than 2,000 townhomes, condos and apartments were added in the past decade to CtrCity, where the population has increased by 50,000. Over 4 million square feet of multifamily homes is currently under development, according to CoStar.

“Disney drew economic activity away from the historic downtown, causing it to wither on the vine,” John Woodhead, the executive director of community and economic development for the City of Anaheim, said of CtrCity’s past. “We had some urban blight, frankly.” He added that the response may have been extreme. In 1973, the city bulldozed vacant buildings over some 100 acres of the downtown that had fallen into disrepair, losing a large number of Anaheim’s historic structures in the process.

“We have been repenting ever since,” said Woodhead. “We wanted to repopulate our downtown after we essentially leveled it overnight, and it took a long time. There were a lot of empty lots.”

As usual, development continues at a red-hot pace in and around Disney, which has had an outsized impact on the city since the theme park opened in 1955. Already the city’s largest employer, Disney is adding a $1.5 billion “Star Wars”-themed land, which will include a nearly 7,000-space parking structure, transit hub and pedestrian bridge to the theme parks. Two luxury hotels are in the works nearby: the 466-room JW Marriott Anaheim in the GardenWalk mall, and an as-yet-unnamed 580-room luxury hotel located directly across the street from the park.

Located a stone’s throw from Disneyland, the Anaheim Convention Center complex, including hotels, sits on over 1,100 acres. A $190 million, 200,000-square-foot expansion has been proposed. Plans include flexible meeting space with a 10,000-square-foot balcony overlooking Katella Avenue, the theme parks and Disneyland Resort fireworks.

“We are seeing an unprecedented level of investment in Anaheim,” said Lyster. “It’s a direct result of efforts we have made to encourage investment as well as Anaheim’s enduring appeal as a place for people the world over to visit.”

The City of Anaheim owns Angel Stadium and the Honda Center, which both lie within the Platinum Triangle, and planners would like to redevelop the 130 acres of asphalt surrounding the stadium.

“We see a lot of opportunity around the stadium to create the kind of experience you see in Downtown Los Angeles with Staples Center,” Lyster said.

As for CtrCity, Lyster points to the positive effect on the area of redevelopment projects like the one at the former Sunkist canning factory, a 12,600-square-foot, Mission-style building built in 1919 that escaped the bulldozers. Developer Shaheen Sadeghi of LAB Holdings transformed it into a communal food hall with 28 food vendors. Known as the Packing House, it opened in 2014. It was designed to recall the nostalgia of Anaheim’s bygone downtown, with salvaged objects from  demolished historic buildings.

“What we’ve seen in CtrCity is a lovely set of amenities that make development around it more attractive,” said Woodhead, “For a long time, visitors have asked what authentic things there are in Anaheim. Until recently, we haven’t been able to point to something unique.”

Jefferson Stadium Park

Texas-based developer JPI — whose first Platinum Triangle project, the Jefferson Platinum Triangle, is currently leasing and nearing completion — will break ground on its second Platinum Triangle project in the spring of 2017. The $225 million, 400-unit multifamily development will be sited on nearly 18 acres at 1969 East Gene Autry Way. Dubbed Jefferson Stadium Park, it is slated to open in 2018. Grand China Fund, a Beijing-based private equity real estate fund, is an investor, in a new partnership for the developer. Anaheim Mayor Tom Tait said in a statement that the development “represents the vision our city has had for Platinum Triangle, including the highest level of architectural features centered around an environment that encourages community engagement.” JPI plans to invest a total of $500 million in the neighborhood.

Read more at The Real Deal

The Year in Design

by Nanci Crotti

From mid-rise to high-rise, from student apartments in Austin to luxury condominiums in Boston, an impressive variety of multifamily designs have been unveiled in 2016. The projects featured here represent a broad spectrum of style, sizes and materials. Their designers are an equally eclectic group. Some are already internationally renowned, while others are future stars or regionally respected veterans. Here are 10 compelling designs in multifamily housing today, with inside-view architects’ commentaries on what went into them.

jefferson-stadium-park-mhn

Jefferson Stadium Park

This $364 million apartment development next to Angel Stadium has phases designed for college-educated professionals and sports fans.

Phase I will have vertical color blocking, a corner element and varying window sizes, art-display space, a gamer lounge, a pool and a tanning ledge. Phase II’s city inspired architecture will have large forms broken into grid patterns, plus a rooftop park, media area, game room, lap pool, fitness center and juice bar.

Phase III will have an industrial/sport theme with glass, metal and concrete finishes; a corner element; and a plaza. A clubhouse will overlook Angel Stadium, with space to showcase local teams, a pool, an indoor/outdoor fitness center and co-working space.

Read More at Multi-Housing News

JPI WESTERN REGION PARTNERS WITH GRAND CHINA FUND IN ANAHEIM’S PLATINUM TRIANGLE

Anaheim, CA (September 27, 2016) – JPI, a leader in the development of Class A multi-family housing, announced today that it has partnered with Grand China Fund, a Beijing-based private equity real estate fund, in a $255 million Joint Venture to develop 747 luxury apartment homes and a to-be-dedicated 1.1-acre City park within the Jefferson Stadium Park 17.6-acre master-planned development in Anaheim’s Platinum Triangle. Jefferson Stadium Park is a prime location within the prestigious Platinum Triangle, directly adjacent to the Los Angeles Angels of Anaheim Ballpark, on the southwest corner of State College Boulevard and Gene Autry Way.

“We are pleased that Jefferson Stadium Park has attracted the attention of the international capital markets and are very excited about our new relationship with Grand China Fund,” said Gus Villalba, JPI Executive Vice President and Managing Regional Partner. “It gives us great confidence that we are building a portfolio of development projects that are resulting in the creation of investment partnerships from broader markets,” he said.

This is the second project for JPI in Anaheim’s Platinum Triangle. Currently under construction is the $180 million Jefferson Platinum Triangle, a 400-unit luxury apartment community located near the intersection of State College Boulevard and Katella Avenue, scheduled for occupancy in late November 2016.

“We are very encouraged to hear that JPI’s Jefferson Stadium Park development has attracted the attention of global investors,” said Anaheim Mayor Tom Tait. “Anaheim’s Platinum Triangle development projects, including JPI’s planned investment in the neighborhood of approximately $500 million, represent the vision our city has had for Platinum Triangle,” said Mayor Tait.

Residents of both Jefferson Platinum Triangle and Jefferson Stadium Park will have access to Anaheim’s Regional Transportation Intermodal Center (ARTIC), as well as year-round entertainment, including Major League Baseball’s Los Angeles Angels of Anaheim, and the National Hockey League’s Anaheim Ducks. Both communities are just two miles from the Downtown Disney Shopping District, Disneyland and California Adventure theme parks. Also nearby is the public marketplace of the Anaheim Packing District.

JPI’s Western Region is based in San Diego and has developed and/or acquired 41 luxury apartment communities throughout California and Arizona totaling over 13,400 homes at an investment of over $2 billion. Recent Arizona activity includes developing 4 luxury apartment communities in metro Phoenix valued at over $300 million. Jefferson Stadium Park will mark JPI as the largest luxury apartment developer in the area, as it continues to eagerly seek out more development sites in the Southern California market.

Grand China Fund offers a safe global real estate investment platform, with a successful and consistent performance history and attractive return on investments through vigorous risk-control systems. “Grand China Fund seeks out partnerships with such leading real estate developers as JPI. JPI’s Jefferson Stadium Park is a model for the type of developments we target to include in our expanding portfolio,” said David Long, CEO of Grand China Fund. “This investment in Anaheim’s Platinum Triangle, and Jefferson Stadium Park, fits well within Grand China Fund’s investment parameters, and represents one of our latest commitments to developing quality multifamily assets in the US.”

About JPI

JPI is a national developer, builder and investment manager of Class A multifamily assets in select US markets, headquartered in Texas, with offices in California, Arizona and New York. With a 30-year history of successful developments throughout major US markets and an unparalleled depth of industry-specific experience. JPI stands among the most active privately held real estate companies in the country. JPI’s executive leadership team has an average of 25 years of comprehensive experience in multifamily developments – ranging from low-density garden apartments, mid-to-high density wrap and podium projects, student living housing projects and mixed-use high rise developments. The firm offers investment management, pre-development, underwriting, marketing and asset management services, as well as construction, financial and administrative services. JPI’s goal is to be recognized by its Associates, Residents and Investors as the #1 residential company in the markets it serves. To learn more about JPI, please visit: www.JPI.com

About Grand China Fund

Grand China Fund is a Beijing based real estate private equity fund with approximately $1.5 billion in assets under management. The fund is dedicated to partner with leading operators and developers in commercial real estate investments in the US. The fund currently owns a portfolio of real estate assets across the country, including Seattle, Los Angles, Dallas, Houston, Austin, Orlando and New York City. The fund is recognized as a pioneer in overseas real estate investments in China, and has been creating diversified alternative portfolios and delivering outstanding performance for investors, both institutions and private clients, since its inception in 2012.

Never Been Hotter: Rents and new rental communities rising in N. Texas.

FRISCO — This summer, we have been exploring the extraordinary things happening in North Texas real estate. But the “hottest market ever” doesn’t just apply to owning.

Rents — and new rental developments — are rising fast, too.

We visited a 400+ unit project being erected in Frisco called Jefferson Stonebriar. Models feature more natural light and an unusually airy feeling for an apartment.

“Today, we have 10-, 12-, 14-foot ceilings,” said Brad Taylor, the regional managing partner at JPI. And he says JPI is working on a project that includes apartments with even higher ceilings.

In addition, they are increasingly using premium finishes.

“These are all custom home features: Mosaic glass cut backsplash. These are quartz countertops, similar to what you would find in a custom home. Stainless steel appliance package,” Taylor said.

brad-taylor
Brad Taylor   (Photo: WFAA)

New apartments sure don’t look like they used to. But they don’t cost like they used to, either.

Taylor acknowledges that the new level of amenities fetches a new level of rent. Many of the apartment units under construction in DFW are considered ‘luxury’ developments. Because of that, Taylor says the lower priced ‘starter’ apartment is generally a developmental generation or two old.

The market is changing a lot. JPI is the largest apartment builder in North Texas right now, and that’s saying something, because North Texas is a standout in apartment construction.

“It is the number-one building center in the U.S.,” said Greg Willet, chief economist for RealPage. He told us there are currently nearly 50,000 apartment units under construction here, which is a staggering figure.

“That’s is about one-in-ten of every apartment on the way across the country,” Willet said.

He attributes most of the growth to workers moving here for jobs, “And newcomers do tend to rent before they buy.”

Even those who would rather buy are finding it’s not cheap.

“If you want to be in Frisco today, it is very difficult to find a home under $400,000,” Taylor said.

Because of that, Taylor says there is minimal pushback from consumers on rising rents.

“Rent growth is the highest it has ever been; above the six-percent mark,” Willet said.

Data from Axiometrics shows rents have steadily climbed in recent years to record levels in North Texas:

                              Dallas-Plano-Irving                          Fort Worth-Arlington

July 2010                            $827                                                   $751

July 2011                            $894                                                   $799

July 2012                            $934                                                   $827

July 2013                            $973                                                   $858

July 2014                            $1,015                                                $900

July 2015                            $1,078                                                $963

July 2016                            $1,134                                                $1,020

Part of the reason for the soaring rates is that only about four percent of North Texas’ 750,000 apartments are vacant. That’s why JPI, which is currently constructing about 2,000 units, plans to start about 2,000 more by the end of the year.

And still, they say they’re not building fast enough to keep up with demand from those who are ready to move in. So they’re having to get creative to show prospective residents what they will be getting.

News 8’s Jason Wheeler tours a finished apartment in virtual reality.   

Prospective tenants who can’t go into active construction sites can now put on a pair of virtual reality goggles and see a development in all its splendor, even though, in reality, it’s still weeks and perhaps even months from completion.

Speaking of looking into the future, builders and analysts alike expect the blistering pace of apartment construction to cool off by the end of next year, but still stay above historic averages. And with so many new units coming online, they expect rent hikes will cool off some, as well — but also stay above historic averages.

READ MORE

Apartment builder JPI joins Dallas’ West Love development

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Apartment builder JPI plans to develop hundreds of rental units in the 35-acre West Love mixed-use project near Dallas’ Love Field.

By Steve Brown
Real Estate Editor

Published: 14 July 2016 10:35 AM
Updated: 14 July 2016 10:35 AM

One of North Texas’ top apartment builders will develop a rental community in the $200 million West Love development near Dallas’ Love Field.

Irving-based JPI plans to build hundreds of apartments in the project on Mockingbird Lane at Maple Avenue.

The first phase will include almost 370 units.

JPI hopes to start building the rental community in September, said senior vice president Matt Brendel.

Construction is already underway in the 35-acre West Love project on two hotels – Aloft and Element – that will total 244 rooms. The $49 million hotel project opens next year.

And developer KDC is seeking tenants for a 150,000 to 200,000-square-foot office building it plans to build next to the hotels and apartments.

A shopping center along Mockingbird rounds out the development.

“JPI is our partner on the multifamily component,” said Jorge Ramirez, partner of Highridge Partner, which put together the West Love project. “We have recently started utility construction in support of the apartments and expect to begin building construction in 30 to 45 days from now.”

Highridge Partners almost eight years ago bought and cleared the West Love development site located between the airport and Stemmons Freeway. They kept the property through the economic downtown are now developing the project.

JPI has more than 3,000 apartments under construction in Texas, California, Arizona, New York and Massachusetts.

In the Dallas area JPI is building in Las Colinas and Frisco.

READ MORE

JEFFERSON STADIUM PARK DEVELOPMENT APPROVED

Anaheim City Council votes unanimously on 17.6-acre master-planned community

Anaheim, CA (June 27, 2016) – JPI, a leader in the development of Class A multi-family housing, received unanimous approval from Anaheim’s Mayor and City Council for Jefferson Stadium Park, a 17.6-acre prime real estate site located in the prestigious Platinum Triangle in Anaheim, California – directly adjacent to Angel Stadium of Anaheim, on the southwest corner of State College Boulevard and Gene Autry Way.

A $364 million development, scheduled to break ground in December 2016, Jefferson Stadium Park is a 1079-unit luxury apartment community, which includes a 1.1-acre public park, and 14,600 sf of community-oriented retail space.

“Jefferson Stadium Park is representative of the ideals of Anaheim’s Platinum Triangle, embodying the highest level of architectural features centered around an environment that encourages community engagement and activation of key boulevards in the Triangle”, said Anaheim Mayor Tom Tait.

Residents of Jefferson Stadium Park will have access to Anaheim’s Regional Transportation Intermodal Center (ARTIC), as well as year-round entertainment, including Major League Baseball’s Los Angeles Angels of Anaheim, and the National Hockey League’s Anaheim Ducks. The development is just one mile away from the Downtown Disney Shopping District, Disneyland and California Adventure theme parks. Also nearby is the public marketplace of the Anaheim Packing District.

This is the second project for JPI in Anaheim’s Platinum Triangle. Currently under construction is the $120 million Jefferson Platinum Triangle, a 400-unit luxury apartment community located near the intersection of State College Blvd., and Katella Avenue, scheduled for occupancy in Fall of 2017.

“Jefferson Stadium Park represents an additional $364 million investment that JPI has committed to Anaheim”, said Heidi Mather, Senior Vice President and Development Partner. “Anaheim’s Platinum Triangle is a model for development efforts that encourage new projects, enhancing quality living experiences for the community. This new project only strengthens our commitment to be a part of the revitalization of this core area of Anaheim.”

JPI’s Western Regional Division is based in San Diego, and has developed 15 luxury apartment communities throughout California totaling over 5,800 units. Additionally, the western division just announced the closing of two development projects in Arizona: Jefferson Town Lake – a $57 million project which broke ground earlier this month; and Jefferson Chandler, a $50 million project anticipated to close in July, and scheduled to break ground later this summer.

“JPI’s foundation is its commitment to building world-class apartment homes that contribute to the fabric and economy of local communities”, said Todd Bowden, Managing Development Partner of JPI’s Western Region. “Southern California, in particular, is a key market focus for JPI. Our development work with the City of Anaheim has been an exceptional experience.”

Project Renderings:

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About JPI
JPI is a national developer, builder and investment manager of Class A multifamily assets in select US markets, headquartered in Texas, with offices in California, Arizona and New York. With a 30-year history of successful developments throughout major US markets and an unparalleled depth of industry-specific experience, JPI stands among the most active privately held real estate companies in the country. JPI’s executive leadership team has an average of 25 years of comprehensive experience in multifamily developments – ranging from low density garden apartments, mid to high density wrap and podium projects, student living housing projects and mixed-use high rise developments. The firm offers investment management, pre-development, underwriting, marketing and asset management services as well as construction, financial and administrative services. To learn more about JPI, please visit www.JPI.com.

JPI BEGINS PLANS TO CONSTRUCT SECOND PROJECT IN ANAHEIM

Closes on purchase of 17.6 acres adjacent to Anaheim Angel Stadium

Irving, Texas (January 22, 2016) –JPI, a leader in the development of Class A multi-family housing, has closed on the purchase of 17.6 acres of prime real estate located in the prestigious Platinum Triangle in Anaheim, California. JPI is working with the City of Anaheim to entitle a three-phase, 1079-unit, mixed-use luxury apartment community (Jefferson Stadium Park) directly across the street from Angel Stadium of Anaheim on the southwest corner of State College Boulevard and Gene Autry Way.

JPI is currently constructing Jefferson Platinum Triangle – a 400 unit luxury apartment community, scheduled to open next year, less than a mile from the proposed Jefferson Stadium Park.

“JPI values its partnerships with cities across the nation in developing housing communities that contribute to the fabric of local economies. The city of Anaheim’s Platinum Triangle is a prime example of government getting it right, in so many ways. JPI made a commitment to invest in the community several years ago,” said Heidi W. Mather, JPI Western Region Senior Vice President. “The Jefferson Stadium Park development only strengthens our commitment to become a partner in the revitalization of this core area of Anaheim.”

Residents of  the proposed Jefferson Stadium Park will have access to Anaheim’s Regional Transportation Intermodal Center (ARTIC), and Anaheim Rapid Connect (ARC) – a proposed streetcar system that would provide service over a 3.2 mile corridor (approximately 6.4 miles of track), connecting residents, workers, and visitors to ARTIC and other points of interest in Anaheim.

Jefferson Stadium Park, an approximate $364 million project, is scheduled to break ground at the end of 2016, with initial occupancy scheduled for 2018.

JPI’s proposed Jefferson Stadium Park includes a 1.1-acre public park, and resort-style amenities. “JPI has a long history of building living experiences that contribute to the quality of life for families throughout the country. Anaheim’s Platinum Triangle is creating new commerce and new employment hubs. Building luxury apartment homes within these new economies is a key focus for JPI”, said Mather.

Jefferson Platinum Triangle is centrally located within the City of Anaheim’s prestigious Platinum Triangle District – an 840-acre transit-oriented urban development, guided by the Platinum Triangle Master Land Use Plan which is bringing high-density, mixed-use, office, restaurant and residential projects to the heart of Orange County.

About JPI
JPI is a national developer, builder and investment manager of Class A multifamily assets in select US markets, headquartered in Texas, with offices in California, Arizona and New York. With a 30-year history of successful developments throughout major US markets and an unparalled depth of industry-specific experience, JPI stands among the most active privately held real estate companies in the country. JPI’s executive leadership team has an average of 25 years of comprehensive experience in multifamily developments – ranging from low density garden apartments, mid to high density wrap and podium projects, student living housing projects and mixed-use high rise developments. The firm offers investment management, pre-development, underwriting, marketing and asset management services as well as construction, financial and administrative services. To learn more about JPI, please visit www.JPI.com.

Construction could begin by year’s end on $364 million apartment complex near Angel Stadium

Construction is expected to begin by the end of the year on Jefferson Stadium Park, a $364 million complex with 1,079 apartment units, 9,800 square feet of commercial space and a 1.1-acre park across the street from Angel Stadium.

Construction is expected to begin by the end of the year on Jefferson Stadium Park, a $364 million complex with 1,079 apartment units, 9,800 square feet of commercial space and a 1.1-acre park across the street from Angel Stadium.

ANAHEIM – Construction could begin by the end of the year on a $364 million, mixed-use complex with 1,079 apartment units, 9,800 square feet of commercial space and a 1.1-acre park across the street from Angel Stadium.

If approved later this year by Anaheim’s Planning Commission, the project – known as Jefferson Stadium Park – would span 17.6 acres on the southwest corner of State College Boulevard and Gene Autry Way. The complex’s first of three phases would open in 2018.

“JPI made a commitment to invest in the community several years ago,” said Heidi Mather, a vice-president for developer JPI. “The Jefferson Stadium Park development only strengthens our commitment to become a partner in the revitalization of this core area of Anaheim.” Read More

JPI on Path to Become Largest Multifamily Developer in DFW

Irving-based builder JPI is at the top of the list of local apartment developers.

JPI had almost 1,900 Dallas-Fort Worth apartments under construction at the end of 2015, according to research by Axiometrics and MPF Research Inc.

The developer completed almost 800 North Texas apartments in 2015 and has another five project under construction in the D-FW area.

“The D-FW real estate market is extremely competitive, so securing the top ranking for most apartment homes under construction is a great milestone for JPI,” said Matt Brendel, JPI’s senior vice president and development partner. “We look forward to increasing momentum this year and are confident the quality of our community developments will continue to set us apart in the industry.” Read More