CEDARst Cos. has found a joint venture partner in Bridge Investment Group for its multifamily expansion strategy throughout the U.S. The partnership’s first two projects are a 226-unit development that’s currently under construction in Washington and a 190-unit project that’s yet to break ground in California.
As part of the joint venture, Bridge committed more than $26 million for CEDARst’s Timber House Apartments Project in Vancouver, Wash. The joint venture also landed a $51 million construction loan for the project from KeyBank. The project team also includes Summit Development Group, who was brought on as a local development partner.
Will Murphy, CEO & managing partner at CEDARst Cos., told Multi-Housing News that construction for Timber House started in May 2021 and is expected to be completed in February 2023. Murphy also told MHN that the community will have studio, one-, two- and three-bedroom units that range in size from 460 to 1,260 square feet. The community’s amenities will include a pool, roof deck, resident lounge, fitness facilities and green space.
Bridge is also expected to commit an additional $20 million from its Opportunity Zone strategy to CEDARst’s 4135 Park Blvd. project in San Diego’s North Park neighborhood. The deal is expected to close in the fourth quarter, with groundbreaking expected in January 2022 and unit deliveries expected in October 2023, Murphy told MHN. Murphy also told MHN that the studio, one- and two-bedroom units will start at 420 square feet and top out at 770 square feet.
MULTIPLE MARKETS ON THE HORIZON
For the past two years, CEDARst has been expanding its multifamily portfolio into San Diego; Minneapolis; Portland, Ore.; Vancouver, Wash.; and Cleveland, Ohio. The portfolio now totals 5,000 Class A multifamily units specifically located in urban cores and will include ongoing projects like its 345-unit project in downtown Minneapolis that is being redeveloped from two warehouses. CEDARst is also planning to enter additional markets by the end of the year with a focus on regions like the Puget Sound, Southern California, South Florida and the Upper Midwest.
With two West Coast projects to kick off the partnership, CEDARst and Bridge are also looking at additional opportunity zone opportunities throughout the country. Murphy told MHN that the partnership has looked at deals in Milwaukee, Las Vegas, Miami and Tampa, Fla. Murphy also told MHN that there’s no timeline for another deal but the partnership is expected to continue with additional projects.