Alliance Residential Undertakes Massive Development Plan
- Jul 07, 2011
Phoenix–Demand for apartments has spiked in the last few years, but because of the credit squeeze in the period immediately following the Panic of 2008, the supply of new apartments hasn’t met demand. Now developers are in a better position to develop multifamily rental properties, and they’re pushing ahead with considerable speed.
Alliance Residential Co., for one, says that it’s going to start about 5,000 units as part of a business plan for this year. The company notes that it’s been able to take advantage of the decline in land and construction costs over the past year and a half, as well as multiple opportunities to buy already-entitled sites in good locations. Alliance is already one of the largest private apartment owners and managers in the country, with a portfolio of about 46,500 units in 24 metropolitan markets.
For its new developments, the company is trying to be as precise as possible in providing renters what they expect. “We hold focus groups with tens of thousands of existing residents at Alliance communities nationwide to identify what they like and dislike, and what they consider to be something that adds value to their rental experience,” Jay Hiemenz, CFO of Alliance, tells MHN. “We then strive to incorporate and adapt the ideas gleaned from these focus groups into our next generation of developments.”
This effort has given rise to a variety of new features, Hiemenz adds. For example, green design elements and energy-efficient features, including appliances, windows and low-flow water devices, are now important to renters. That might not be so surprising, considering the attention green living has received in recent years.
But renters are also interested in such features as “custom touches in individual homes that allow them to make their spaces unique, heavily amenitized roof decks, private wine storage, art lobbies, gourmet demonstration kitchens, and fitness centers with dedicated spaces for yoga, Pilates and spin classes,” Hiemenz says. “Also, electric car charge stations, pet parks with dog washes, sports book lounges, iCafes, Wi-Fi access in all common areas, game rooms with Kinect for Xbox 360 and Wii stations, and more.”
All of Alliance’s new developments will be branded under the Broadstone name and managed by the company. Its current projects include properties in Arizona, California, Florida, Nevada and Texas.