Watermark Begins Construction on St. Louis-Area Development
- Oct 06, 2020
Construction has begun on Avenue64 by Watermark, a 316-unit multifamily community being developed by Watermark Residential in the St. Louis suburb of O’Fallon, Mo. The property is slated for completion in August 2022 and will be the company’s fourth apartment asset developed in Missouri.
Watermark Residential, a wholly owned affiliate of Thompson Thrift, acquired approximately 19 acres in the affluent suburb to build the Class A apartment community. The firm has secured financing for the project but declined to disclose details, including the lender partner.
Located at 1147 Technology, Avenue64 by Watermark will be located between I-64 and Highway K, about 30 minutes west of downtown St. Louis. It will be less than 1 mile from CitiMortgage and Progress West Hospital, two of the metro’s largest employers, and a five-minute drive from MasterCard’s global operations headquarters. Several local and national restaurant and retail options are located near the planned community.
The property will consist of three four-story buildings and have 316 one-, two- and three-bedroom apartments averaging just over 1,000 square feet. Rents will range from $1,300 to $1,900. Each unit will have premium interior finishes including 9-foot ceilings with designer light fixtures, smooth glass cooktop stoves and stainless steel appliances, gourmet bar-kitchens with quartz countertops, walk-in closets, garden tubs and full-size washers and dryers. Community amenities will include a clubhouse, fitness center, swimming pool with cabanas and entertainment areas, a bark park and doggie spa. Avenue64 by Watermark will have an onsite property management team.
With relatively high income levels and affordable living rates, O’Fallon has been called one of the best cities to live in the Midwest. The greater St. Louis area has approximately three million residents and is the 21st largest metro by population in the United States. Demand for quality multifamily properties continues to outpace the supply, especially in O’Fallon, where only 456 units have been delivered in the last five years. Overall, the St. Louis MSA has seen fewer than 1,800 multifamily completions per year over the past five years, according to Watermark.
Jesse Houghtalen, Watermark’s vice president of development, Southeast, said in a prepared statement high barriers to entry is one of Watermark’s top criteria for new developments. The limited development in the O’Fallon area has lead to a strong multifamily market in the region, he said. Josh Purvis, Watermark managing partner, credited the Watermark team for securing what he called an advantageous site during the current environment and said they look forward to bringing a second Watermark project to the St. Louis area. In February 2017, Watermark acquired 12.7 acres in Chesterfield, Mo., to build Watermark at Chesterfield Village, a 345-unit Class A apartment community completed in early 2019.
In March, Watermark acquired 23 acres in Kansas City, Mo., to develop The Element by Watermark, a 276-unit, garden-style apartment community. The firm opened Watermark at Tiffany Springs, a 276-unit community also in Kansas City, in September 2019.