Alliance caters to millennials seeking high-end living without long-term commitment
As the millennial generation moves into its prime spending years, it is forcing many companies to reexamine how they do business. When it comes to real estate, the tech-savvy generation is slower to commit to purchasing a condo or a home. Freedom outweighs the burden of ownership.
While reluctant to enter the housing market, many millennials seek upscale living space formerly associated solely with condos or homeownership. Since marriage and children are being postponed, they can afford to rent a plush apartment.
“They have a good income and they want high-end amenities but they don’t want to be tied down so renting by choice is appealing,” says Mike D’Andrea, senior project executive at Alliance Residential Company. “They want a state-of-the-art work out facility with the best equipment and they are looking for highly-amenitized common areas. We give that to them.”
Phoenix-based Alliance Residential is one of the largest multifamily developers and seventh-largest multifamily manager in the nation. It is also the developer of the high-profile Broadstone brand luxury apartment communities, known for their premier locations, high-end finishes and amenities.
The company is building two major luxury apartment complexes in Arizona: Broadstone Roosevelt Row and Broadstone Lakeside. Due to an antiquated view of apartment complexes, Alliance Residential experienced some bumps in the road.
“One of the challenges was neighborhood opposition to rental products. People sometimes have the notion that apartments attract transients and/or low-rent clients,” D’Andrea says. “But our communities are for young professionals and empty nesters looking for Class A locations. They’re getting high-end units and a good demographic of people paying top dollar to be there.”
Broadstone Roosevelt Row
One of Alliance Residential’s largest multifamily housing projects, a 316-unit luxury apartment complex, is under construction in the Roosevelt Row Arts District in the urban core of downtown Phoenix, nationally known for its arts and cultural events. The $62 million project has two phases, with the first slated for completion in fall 2017 and the second in spring 2018.
“This project is a robust, high-profile deal,” D’Andrea says. “It’s within walking distance of the arts district, downtown and all the sports and entertainment venues. It’s really in the middle of everything.”
Encompassing roughly 295,500 square feet, the four-story building with a few lofts on the top floor will have an 8,000-square-foot Mexican restaurant on the first floor and an additional 4,400 square feet of yet-to-be determined retail space.
Broadstone Roosevelt Row’s amenities will include a resort-inspired pool and pool house with private cabanas, two-story fitness center with top-of-the-line equipment, rooftop pavilion and a clubroom. The complex will boast a variety of high-tech features that include Sonos sound systems, GE’s Wi-Fi-connected appliances and NEST’s self-learning, Wi-Fi-enabled thermostats. Residents will be able to choose between studios, one-, two- and three-bedroom apartments that range in price from $1,425 to $3,000 per month.
Targeting millennials as well, the Broadstone Lakeside luxury apartment complex will offer 150 rental units near Tempe Town Lake, Tempe. The area is known for condos and rental units along the lakefront are rare.
The $30 million project should be completed by spring 2018, though the first phase – its south building with 64 units – will be ready for occupancy by the end of this year. The 166,000-square-foot apartment complex will be very similar to Broadstone Roosevelt Row. It will house studio, one-, two- and three-bedroom apartments that range in price from $1,425 to $3,000 per month. The four-story complex with lofts on the top floor will also have a two-story underground parking garage.
A shared office on the first floor will include a conference room, break room with sink and fridge, various cubicles and resident gathering spaces. “The thing that makes this unique is the waterfront component,” D’Andrea says. “We’re in the desert and being adjacent to a body of water is a significant sales feature.”
Amenities include a pool house, rooftop terrace, a 2,500-square-foot fitness center and a club room with TV, billiards and a kitchen that allows for cooking demonstrations. Its outside pool with restroom facilities will have private cabanas. “We put a lot of time, effort and expense into our amenity areas,” he says.
Units will feature high-end GE appliances and finishes, quartz countertops, custom wood floors, walk-in closets and Moen plumbing fixtures.
“What separates Alliance from our competition is our people. Few companies have the skill sets to get these types of projects closed and successfully executed. All we do is multifamily rental, it is our core business product,” D’Andrea says. “We have a great development and construction team. We’re fast to close and have really strong institutional equity partners.”
Alliance is one of the country’s largest private apartment owners, boasting a $15 billion portfolio of more than 89,000 apartment units in 32 metropolitan markets. The company is actively seeking management, development and acquisition opportunities across the markets it serves.
As an integrated multifamily real estate company, Alliance focuses on development, management, construction and acquisition of residential and mixed-use communities. It has 35 regional offices throughout the United States.
The company has recently been featured in the Phoenix Business Journal, where it ranked No. 2 for top multifamily commercial real estate developers. The Houston Business Journal ranked it No. 2 among the largest Houston-area multifamily developers.
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