HUNTSVILLE, Ala. – Capstone Communities has begun construction on its latest build-for-rent (BFR) development in Huntsville, The Villas at Old Monrovia. This project marks Phase II of Capstone’s first Huntsville development, The Cottages at Old Monrovia. The low-density multifamily community will sit on approximately 29 acres south of The Cottages at Old Monrovia, off Research Park Blvd.
Construction on The Villas began this month, with its first units scheduled to be delivered by Fall 2023 and full completion in Spring 2024. Developed with a “new urbanism” style featuring sidewalks, pocket parks and open green spaces, this 276-unit community is designed intentionally to create a true sense of place for its residents.
“Our first cottage development in Huntsville – The Cottages at Old Monrovia – leased up quickly and demonstrated Huntsville’s strong demand for this high-quality, flexible housing product,” said Jim Beatty, Capstone’s vice president of development. “Huntsville’s booming population growth is a glowing representation of its strong economic foundation, and we’re excited for the opportunity to continue creating communities in Alabama’s largest city on the rise.”
Designed by Birmingham-based Nequette Architecture & Design, The Villas will offer a mix of lofts, one and two-story cottages, as well as two-story townhomes with each having private outdoor yards. The Villas will include nine to 12-foot ceilings, wood-grain flooring, in-unit washers and dryers, a smart home technology package, 24/7 on-call maintenance and optional enclosed garage parking. Neighborhood amenities include courtyards with pavilions and grill stations, a central clubhouse with a resort-style pool, a state-of-the-art fitness center, dog park and valet trash.
“The Villas at Old Monrovia – and each of our cottage communities – is designed and built with the community’s evolving needs top of mind,” said Shep Nolen, president of Capstone’s in-house construction entity, CBI Construction Services. “The Villas are only a three-minute drive to some of Huntsville’s major employment hubs, including Cummings Research Park and Redstone Arsenal, which will offer a convenient option for the Rocket City’s expanding workforce to call home.”
Capstone currently has another BFR project under construction near Birmingham, The Cottages at Greystone. Outside the state, Capstone’s BFR footprint stretches across the Southeast with eight more communities under development in Georgia, North Carolina, South Carolina and Florida.
CBI Construction Services is serving as the general contractor, and Capstone Properties, Capstone’s in-house management division, will begin pre-leasing in Spring 2023. Cody Kirkpatrick, Noam Franklin and Chinmay Bhatt of Berkadia JV Equity & Structured Capital sourced the equity partner for this project.
“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.
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.
