Multi-Housing News - August 2009 - (Page 33)

profile Aiming High Amli incorporates urban high-rises into its development mix By Keat Foong, Executive Editor y some measures, Amli on 2nd in Austin, Texas performed very well. Although that strategy may be put on hold temporarily because of the recession, the 231-unit tower represents a successful urban high-rise development for Amli Residential Partners LLC. Greg Mutz, CEO of Amli Residential, attributes the success of Amli on 2nd, above all, to the strong consumer demand for downtown urban living and the 24/7 retail, entertainment and recreational opportunities that the property’s location offers. “People just like being in downtown Austin and the proximity to the amenities,” he says. Amli on 2nd is located in the heart of the emerging Second Street Retail District in Downtown Austin. New retail has been rapidly emerging in the district, which may even be beginning to compete with prime Austin retail destinations such as the Arboretum and The Domain. The 18-story Amli on 2nd contains 35,000 square feet of ground level retail; four-and-a-half levels of above-ground parking; and a pool, clubhouse and recreation deck above the garage. PageSoutherlandPage, the firm that designed the property, noted it was “an instant” success; more than 60 percent of the apartments were leased before construction was completed in 2008. Occupancy at the property is currently 95 percent. Monthly rents range from $1,600 to $1,900, says Mutz. “Austin is a very competitive market,” he comments, admitting that the rents, though, were somewhat “less robust” than expected. Amli on 2nd is not the first urban high-rise for the company. Another property, on the next block, is the 220-unit, seven-story Amli Downtown, completed in 2004. And Amli also developed three urban products in Chicago this decade. These urban properties represent a departure for Amli in that the company has predominantly developed suburban garden apartments. Founded in 1980, Amli was a private real estate development B company. It became a publicly traded Real Estate Investment Trust in 1994. In February 2006, Amli reverted to private ownership through a $2.1 billion Amli on 2nd is a 231-unit tower in the heart of the Second Street Retail District in Downtown Austin. transaction with the Prime It is a Four Star Green-rated community. Property Fund, an institudesigned to various green designation standards. tional real estate fund managed by Morgan Stanley. Indeed, Amli has 16 LEED-accredited professionals Prime’s acquisition of Amli’s platform was designed to working for the company, says Mutz, adding that provide institutional investors a nationally respected the company is very interested in building green. branded owner, developer and manager of luxury “We look at it as both an economic and moral apartment communities. imperative,” he says. However, the company is still Amli’s portfolio consists of 61 communities, trying to quantify the benefits of green developincorporating nearly 22,000 apartment homes, and ment. “We are very interested in figuring out what about 2,000 additional apartment homes in five this means. It is not clear what exactly is the right locations under development or in lease-up. strategy, and what the returns are from green efforts. Mutz says that Amli will continue to consider It appears that buildings that are greener may be both urban and suburban locations. “We think that worth more, but how you quantify that cannot be urban properties in 24-hour cities make a great deal done right now.” of sense. There are many characteristics that render Mutz notes that Amli will develop apartments urban rental communities attractive,” says Mutz. that conform to green standards, though not nec“There is strong demand for urban living, and the essarily LEED, which works better for certifying statistics bear this out.” concrete and steel mid- and high-rises, and not For now, though, Amli has placed new developstick-built suburban properties. ment on hold. Although it will continue to acquire “LEED has a task force that is attempting to figin both suburban and urban locations, Amli will ure out how to apply the certification to suburban, probably not be breaking ground until rents return low-rise stick-built developments,” he says. “This to levels that will cover new construction costs, says is a rapidly evolving subject.” MHN Mutz. He surmises that it may be later this year or next year before the company will look at groundup development again. To comment, e-mail keat.foong@nielsen.com. Another strategy Amli is likely to continue is its MHN ONLINE green development program. In fact, Amli on 2nd is a Four Star Green-rated community, the secondREITs may dominate market again, according to NAREIT speakers: highest green rating under Austin’s Green Building www.multi-housingnews.com/REITsMarket Program. Many of Amli’s other properties are www.multi-housingnews.com | August 2009 33 http://www.multi-housingnews.com/REITsMarket http://www.multi-housingnews.com

Table of Contents for the Digital Edition of Multi-Housing News - August 2009

Multi-Housing News - August 2009
Contents
From the Editor
Executive Insight: David Hendrickson, JLL
Market Pulse
Operations
Finance: Green Lenders
Property Management: Mentoring
Development & Design: Green
Profile: AMLI
Market Report: Florida
Kitchen & Bath: Saving Water
Products: Paints & Finishes
Technology: Resident Screening
Perspective: Leasing Practices

Multi-Housing News - August 2009