BIRMINGHAM, Ala. – Capstone Communities is expanding its multifamily portfolio outside the state with the recent announcement of two low-density cottage communities in Daytona Beach, Fla. and Summerville, S.C., marking its second and third conventional projects to-date.
Last spring, Capstone began its first multifamily venture with The Cottages at Old Monrovia in Huntsville. Both upcoming projects will follow a similar development approach to Huntsville with a “new urbanism” style featuring cottage-style homes with sidewalks and pedestrian-friendly amenities. This model represents a much larger housing trend taking shape nationwide – the rise of build-for-rent (BFR) communities.
“We’ve seen the cottage-style concept prove highly successful in numerous student housing communities we have developed and managed across the country,” said John Acken, executive vice president of development for Capstone Communities. “As we’ve begun introducing this build for rent concept to the multifamily sector, it presents an attractive housing option for individuals in a life transitional phase – whether moving to a new city, preparing to eventually buy a home, or downsizing.”
BFR communities are one of the fastest growing trends in the multifamily real estate segment today. According to market experts (including John Burns Real Estate Consultants), BFR concepts generate approximately 20 – 30% rental rate premiums compared to traditional multifamily apartments because of their design and amenity offerings. Most BFR communities consist of single-story cottage-style homes and private yards with access to upscale apartment-like amenities.
With many residents rethinking the way they live as a result of COVID-19, Capstone expects BFR communities to continue thriving in the future.
“The pandemic has caused a mindset shift among renter’s preferences today,” Acken added. “Many people are now finding more value in the space and affordability you can have in low-density suburban areas.”
CBI Construction Services, Capstone’s in-house construction entity, broke ground on The Cottages at Daytona Beach last December. The Cottages are situated on 30 acres in the booming area of West Daytona Beach that has experienced a significant influx of retail, residential and employment growth over the last few years. The first units are anticipated to be delivered in fall 2021 with full project completion slated for spring 2022.
“With Daytona Beach’s major employment centers, strong retail presence, and attractive public amenities, our team is looking forward to meeting the needs of the market with this multifamily development,” said Shep Nolen, president of CBI Construction Services. “We are also proud to support the city’s rapidly growing economy by bringing approximately 100-120 construction jobs to the Daytona Beach community.”
In South Carolina, Capstone will soon begin construction on a 282-unit project at Nexton, an innovative and award-winning 5,000-acre master planned community located outside the Charleston metro area in Summerville. Occupying nearly 27 acres, the Nexton development will sit adjacent to the planned MUSC Health Community Hospital at Nexton and primarily target the area’s medical professionals. The first homes are scheduled to be delivered in fall 2021 with full completion expected in summer 2022.
“Nexton’s partnership with Capstone comes as a growing number of individuals and families are looking for new residential choices that fit their lifestyle,” said Nexton’s Vice President of Operations Brent Gibaldo. “Capstone’s development offers single-family rental homes in a suburban environment with amenities and services typically found in more urban settings, all of which are highly desirable right now.”
Nequette Architecture & Design is the lead architect for both projects and CBI Construction Services is the general contractor. Capstone Properties, Capstone’s in-house management division, will begin pre-leasing for both properties in summer 2021.
For more information, visit www.capstone-communities.com.
About Capstone Communities
Capstone Communities, formerly Capstone Collegiate Communities, is a Birmingham-based commercial real estate firm specializing in development, management and construction of student, multifamily and senior housing. Capstone Communities was formed in January 2012 as part of the restructuring of Capstone Development, the most active and experienced developer of student housing in the country for more than 21 years with a portfolio that included 118 communities across 31 states, 58,000 beds and $2.7 billion project costs. Capstone Communities carries on Capstone Development’s legacy in the student housing industry while also focusing on the conventional multifamily and senior living sectors. For more information, visit www.capstonecollegiatecommunities.com.
