TAMPA, Fla. – Capstone Communities has broken ground on its latest build-for-rent (BFR) community, The Cottages at Cypress Cay, in Tampa, Florida. A low-density multifamily development, The Cottages is located in the established Tampa Palms neighborhood, just north of Bruce B Downs Blvd.
“With Tampa Bay’s continual top 10 national metro ranking for population and migration growth and Tampa Palms’ high concentration of employees, this is the perfect location to introduce our cottage-style community,” said Amanda Wallis, executive vice president – development for Capstone Communities. “The Cottages will give residents a sense of community unlike the traditional apartment setting and provide easy access to work, shopping, restaurants and entertainment.”
Construction will begin in August 2022, with the first units scheduled to be delivered by Fall 2023 and full completion in Spring 2024. Incorporating a “new urbanism” style, the 198-unit development includes sidewalks, pocket parks and open green spaces.
Designed by Birmingham-based Nequette Architecture & Design, The Cottages will offer a mix of lofts, one and two-story cottages, as well as two-story townhomes including private outdoor yards. Each unit will include nine-to-12-foot ceilings, wood-grain flooring, in-unit washers and dryers, 24/7 on-call maintenance and optional enclosed garage parking. Neighborhood amenities include lush courtyards with pavilions, a central clubhouse with a resort-style pool, fitness and business centers, pet washing stations and valet trash.
For more than two decades, Capstone built its reputation in the student housing industry. After expanding to multifamily in 2018, Capstone quickly became an industry leader at the forefront of the rapidly growing build-for-rent movement. With similar projects under construction in Daytona Beach and Port St. Lucie, Capstone currently has 10 total BFR cottage-style communities under development across the Southeast in Georgia, Alabama, Florida, North Carolina and South Carolina.
CBI Construction Services is serving as the general contractor for The Cottages at Cypress Cay. Capstone Properties, Capstone’s in-house management division, will begin pre-leasing in Summer 2023. Cody Kirkpatrick, Noam Franklin and Chinmay Bhatt of Berkadia JV Equity & Structured Capital sourced the equity partner, a fund manager based in Texas.
“We appreciate the opportunity to help Capstone Communities rapidly expand its portfolio of BFR communities throughout the Southeast over the last 12 months,” said Kirkpatrick, managing director of Berkadia JV Equity & Structured Capital. “These newest communities are evidence of the value of long-term programmatic partnerships between experienced developers and an institutional equity partner. Among a variety of capital providers, we were able to identify an equity partner whose values and goals aligned with Capstone’s, allowing them to execute on these transactions with speed and confidence in an otherwise volatile market.”
About the Build-for-Rent Concept
Build-for-rent communities are one of the fastest growing trends in the multifamily real estate segment. According to industry expert, Brad Hunter, about 100,000 BFR units were built in 2021 with an estimated 120,000 units to be built in 2022. Hunter sees this trend eventually surpassing 200,000 new-construction units per year (Hunter Housing Economics).
About Capstone Communities
Capstone Communities is a Birmingham-based real estate firm specializing in development, management and construction of student housing, multifamily and town centers. Capstone Communities was formed in January 2012 as part of the restructuring of Capstone Development, a nationally renowned student housing developer for more than 21 years with a portfolio that included 118 communities across 31 states, 58,000 beds and $2.7 billion project costs.
In 2018, Capstone expanded to the multifamily sector at the forefront of the build-for-rent movement with the introduction of its cottage-style development program. Today, with a mission to be an innovative company dedicated to serving people, building community and delivering exceptional experiences that stand the test of time, Capstone’s growing project footprint now stretches across the Southeast with build-for-rent communities under construction in Alabama, Georgia, Florida, South Carolina and North Carolina. For more information, visit capstone-communities.com.
