Midland – Stoneleigh Companies, LLC

Stoneleigh Companies Announces the Sale of Waterford Lakes Apartments and Waterford at North Park Apartments

BARRINGTON, IL – July 10, 2019 – Stoneleigh Companies, LLC in Barrington, IL announces the sale of two apartment communities located in Midland, Texas: Waterford Lakes and Waterford at North Park.

Stoneleigh acquired Waterford Lakes and Waterford at North Park in December of 2012. Waterford Lakes, a 278-unit community, sold on June 28th, 2019 with 97% occupancy. Waterford at North Park, a 200-unit community, also sold on June 28th, 2019 with 95% occupancy. Stoneleigh was represented by Bart Wickard of Newmark Knight Frank in the sale.

The sale of Waterford Lakes and Waterford at North Park follow closely behind the sale of Waterford Ranch Apartments. The 300-unit community also located in Midland, Texas, recently sold on January 10th, 2019 with 97% occupancy. Stoneleigh was represented by Newmark Knight Frank in the sale.

About Stoneleigh Companies, LLC
Based in Chicago, Stoneleigh Companies is a private real estate investment company focused on acquisition and development of multifamily properties, with a track record of over 40,000 multi-family units in 35 cities and 18 states over the last 35 years. The principals and officers of Stoneleigh are experienced in all aspects of commercial real estate development, investment, finance, and operations. For more information, visit www.waterfordresidential.com.

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Download the Stoneleigh Release PDF

One Arlington – Daily Herald

‘We’re not giving up’: Next phase of Arlington Downs project about to begin

Daily Herald | Christopher Placek | June 29, 2019

Shovels should be in the ground soon on the next phase of the stalled Arlington Downs project — the massive $320 million mixed-use redevelopment west of Arlington International Racecourse.

Plans for a five-story, 263-unit apartment building on the southeast corner of the 27-acre site on Euclid Avenue are in for final permit review with the village. There’s still one technical issue to be resolved before the permit can be issued and construction begins, said Charles Witherington-Perkins, the village’s director of planning and community development.

It would take an estimated 20 months to finish building the apartments, and perhaps some five years for the entire redevelopment to come to fruition, including a proposed hotel, additional residential units, and retail outlots.

“Once they get the apartments started, hopefully then other things will fall into place,” Witherington-Perkins said Friday.

The village board approved original plans in 2012, but the developer made revisions as the market changed. The initial proposal called for reopening a shuttered indoor water park, building a six-story hotel and having up to 71,000 square feet of commercial space.

The latest plans call for a climbing wall recreation facility inside the old water park, a scaled-down four-story hotel, and some 40,000 square feet of retail.

The project revisions received approval from the village board last September, and trustees signed off on a final plat of subdivision last week, paving the way for construction to begin.

“This has taken way longer than anybody wanted,” said David Trandel, chairman/CEO of Springbank Real Estate Group, which is leading the redevelopment. “But we’re going to see it through. We’re not giving up.”

“The good news is we didn’t do something that might not have worked,” he said. “We had some ideas early and the world changed on us. Now we got to make it more relevant for the next 20 years than what we might have wanted early.”

Trandel said Springbank sold 2 acres of land to Indianapolis-based General Hotels Corp., which will build a four-story, 116-room hotel near the Euclid Avenue/Rohlwing Road intersection. The hotelier is still planning to operate the hotel flag Vib, the urban boutique hotel concept of Best Western.

As for the former CoCo Key water park, the project team a year ago announced plans to turn half the space into First Ascent, which would offer courses for climbers of varying skill along with exercise classes and gym equipment, and the other half into Funtopia, a family entertainment center.

But Witherington-Perkins said Friday that First Ascent now plans to take up the entire 46,000-square-foot building.

The old water park is attached to the One Arlington residential tower, formerly a Sheraton hotel, which was renovated and became the first piece of the development to open in 2015.

Future phases call for a 55-and-older residential building on the southeast corner of the site, and a 360-unit residential development on the northwest corner.

Waterford Bay – Twin Cities Pioneer Press

Apartment proposal at former Island Station power plant promises Mississippi River access

Twin Cities Pioneer Press | Frederick Melo | May 26, 2019

Ryan Swingruber said he has big plans for the former Island Station site in St. Paul, but not too big.

The 10-acre parcel of land bordering the Mississippi River near Shepard Road and Randolph Avenue has sat vacant since 2014, and previously was home to a coal-fired power plant decommissioned in the 1970s.

By September, he hopes to break ground on three and four stories of rental housing — a mix of micro, studio, one-bedroom and two-bedroom apartments.

Working with a series of environmental consultants and architects, the Chicago-area developer drew up plans for 250 market-rate apartments, stepped back from the river.

Swingruber’s vision, set within a federal “Opportunity Zone,” calls for a multi-family housing complex that he said will increase rather than block river access.

Those plans include paved walking and biking paths to an inlet, a proposed public kayak launch and connections from the regional trail system along Randolph Avenue.

“From there, they’ll be able to traverse the peninsula,” said Swingruber, who has been meeting with Xcel Energy, which owns land on either side of the future development. “We want to make it public, with defined access and signage.”

The West 7th/Fort Road Federation voted to support the project’s conditional-use permit in March, but also included a letter to the city’s zoning committee raising two concerns. The federation sought deeper assurances the project would include improved public access to the river, and raised questions about the lack of affordable units.

“The Federation Board is being asked, once again, to support a market-rate housing project in our district,” said the letter, signed by board president Dana DeMaster. “We have a need for affordable housing, especially for families and for elderly persons, and this project proposal will not meet that need.”

She noted that the West Seventh neighborhood has among the highest average rents in St. Paul, and experienced a 17 percent increase in rental costs since 2010.

Swingruber said he’s also met with the Friends of the Mississippi River and, in response to their concerns, the building height will drop from four to three stories nearest the riverfront.
“We’ve seen some past development proposals that haven’t gone anywhere,” said Colleen O’Connor Toberman, river corridor program director with Friends of the Mississippi River. “From what we’ve seen of the developer’s plans, there are some nice components of community access to the riverfront, and we do appreciate that aspect of the plan.”

ISLAND STATION BLOWN APART
The site was once home to the Island Station coal-based power plant, an unofficial St. Paul landmark that drew its share of cheers and jeers before it was blown to smithereens.

At St. Paul City Hall, efforts to declare the decommissioned 1920s-era power plant a local historic site deadlocked with a tie vote before the city council in 2013, sealing its fate. Developers literally exploded the iconic but decrepit structure the following March.

As the 280-feet-tall metal smokestack collapsed into debris, hopes for new residences, retailers and other fresh real estate gained some ground.

Fast forward five years, and no one has built anything. After nearly 45 years in limbo, however, the Island Station property has once again caught the eye of a prospective buyer.

Swingruber, a vice president with the Stoneleigh Cos. of Barrington, Ill., hopes to add housing to the site under the title Waterford Bay. This will be the first Twin Cities development for the company, which has apartment properties throughout Texas.

On Thursday, the St. Paul Planning Commission’s zoning committee reviewed a request from the Stoneleigh Cos. to construct the 45-feet-tall apartment complex. Anything above 35 feet triggers the need for a conditional-use permit.

In addition, the main entrance would be situated facing the river on the east side of the property, rather than in the third of the building closest to Randolph Avenue, as currently required.

The developer has also proposed a fire access road and storm sewers in the floodway plain, as well as variances for a front yard setback.

Swingruber said the building will be set back 100 feet from the river, rather than 50, as presently required, in respect for the proposed river setbacks in the city’s draft 2040 Comprehensive Plan. It will be three stories tall closest to the river, and four stories closer to Randolph Avenue, creating a stepped-back approach from the waterfront.

The “Traditional Neighborhood” or “T2” zoning would allow a maximum of 375 housing units, but Swingruber plans to build two-thirds as many units so as not to overwhelm the site.

Given the site’s history as a coal-fired plant, the project will require carefully addressing contaminated soils. Swingruber said he’s worked closely with environmental consultants Braun Intertec, design engineering consultants Kimley-Horn and architects with the BKV Group.

The site sits within a federally designated “Opportunity Zone,” which allows certain tax benefits for investors who hold onto properties for at least 10 years.

In an interview, city council member Rebecca Noecker said she looked forward to a briefing from St. Paul Planning and Economic Development.

FALSE STARTS
A previous developer, T.J. Hammerstrom, once planned 240 units of townhomes and condominiums on the site and in an adjoining eight-story building, which were never constructed.

In late 2014, after the power plant was demolished, Breckner River Development of Burnsville sold the site to Riverwalk of Scottsdale, Ariz., for $4.5 million.

The plot of land at 380 Randolph Ave. generates about $70,000 to $75,000 in property tax and special assessments annually. The listed property owner, St. Paul Riverwalk LLC, owes $343,000 in back taxes, according to Ramsey County property records.

According to the county, the land has an estimated market value of roughly $2 million.

Waterford Bay – Minneapolis/St. Paul Business Journal

St. Paul riverfront site has long vexed developers, but there’s a new plan

Minneapolis/St. Paul Business Journal | Nick Halter | May 17, 2019

A 10-acre piece of land along St. Paul’s Mississippi River riverfront, once the site of Xcel Energy’s Island Station power plant, could be home to as many as 250 apartments.

Several developers have taken a run at the site over the past two decades, most recently in 2014 when local developer Jim LaValle floated an office and residential project that never materialized. In 2004, Rich Pakonen and Dennis Doyle tried to do condos.

Now Stoneleigh Cos. of Barrington, Ill., has plans to use the site for 240 to 250 apartments in a building that steps from three to four stories. Those plans go before the city’s Zoning and Planning Committee on May 23 with a potential May 30 Planning Commission vote.

Ryan Swingruber, vice president of development at Stoneleigh, first visited the site last August, when he rented a Nice Ride bike near his downtown hotel and pedaled down to the river and took the trails southwest to the site, which is near the corner of Shepard Road and Randolph Avenue.

The site’s proximity to those bike trails and the river are influencing the design of Swingruber’s project. He’s working with Xcel Energy, which owns land around the project, to get easements that would bring the trails into the site and lead down to a peninsula, where he’d like to build a small launch for kayaks and canoes.

The project, called Waterford Bay at St. Paul, will have some of the amenities you’d expect, like an outdoor pool atop a parking podium, dog run, fitness center and wi-fi cafe.

But it also has some features geared toward the area, like storage for tenants to keep their kayaks, tents, hiking gear, cross country skis as well as a bike room.

The site is subject to flooding, so Stoneleigh is adding three feet of dirt to raise the building. It’s also going to use most of the first floor for parking — around 250 or 260 spaces — in case the water does creep up like it did this spring.

Swingruber said the apartments mix will skew heavily toward studios and smaller one-bedroom units, with a goal of keeping average rents in the low $1,500s, which would be $125 or $150 a month below the going rate of new Class A buildings in St. Paul.

While 10 acres seems like a lot for just 250 units, Swingruber said only around six ares are buildable due to utilities, easements and a river setback of 100 feet. Stoneleigh could have built 50 feet closer to the river but Swingruber said the city’s 2040 plan will change the setback to 100 feet and he wanted to respect that.

The current owner of the land, St. Paul River Walk LLC, is behind on his taxes by $342,000. Swingruber said Swingruber’s acquisition of the property will include an allocation to pay that debt off, avoiding a forfeiture of the land.

Pending approvals, Swingruber hopes to close on the land in mid July and break ground by Oct. 1. Construction should take 18 to 20 months, which would put an opening in the first quarter of 2021.

This will be Stoneleigh’s first Minnesota project. The company manages 11 apartment communities and has three more under construction, plus five in development. Those apartment projects operate under the company’s property management brand, Waterford Residential.

BKV Group is the architect on the project

Waterford Bay – Finance and Commerce

Apartments pitched for Island Station site

Finance and Commerce | William Morris | May 14, 2019

The onetime coal-burning plant at 380 Randolph Ave. was built in the 1920s but closed down in 1973. St. Paul River Walk LLC, an ownership group tied to Arizona businessman
Robert Graham, bought the 10-acre riverfront property in 2014 and tore down the power plant, with plans by local developer Jim Lavalle to build apartments, offices and some public
space on the site. By 2017, though, that project had fizzled.

Now a Chicago-area developer thinks it has the right plan for the site. Barrington, Illinoisbased Stoneleigh Cos. and its affiliate Waterford Residential have approached the city with
plans to build 240 to 250 market-rate apartments on the site. The $58 million Waterford Bay project goes before the city’s zoning committee May 23 to obtain a conditional use permit
for height, setbacks and other requests.

Key to Stoneleigh’s vision for the project is the location, vice president of development Ryan Swingruber said in an interview. The property is on the north bank of the Mississippi River,
just east of Shepard Road. The land to either side, including a peninsula creating a small river inlet to the east, is owned by Xcel Energy.

Stoneleigh hopes to tap into the existing bike and walking trails along Randolph and connect them to the river, and is in talks with Xcel to extend those connections onto the utility’s land, possibly even including a new kayak landing on the river inlet.

“Obviously we are building apartments, but we are cognizant of the surrounding area,” Swingruber said. “We’re hoping to create a public and private connection through our property to allow public access to the river and extending the biking and walking paths.”

Stoneleigh has had the land under contract since November, Swingruber said, and hopes to get the needed city approvals to close on the site in July. The timing is important because the property is slated for forfeiture to the state in August due to unpaid taxes of more than $342,000, according to Ramsey County records. Stoneleigh plans to remedy that during closing and hopes to begin remediating coal ash and other contaminants on the site before winter.

Golden Valley-based Benson-Orth is on deck as the contractor. Plans prepared by Minneapolis-based BKV Group depict a four-story building facing Randolph, stepped down to three stories facing the river. Parking and other amenity space would occupy a first-floor podium. Floors two, three and four would offer a unit mix heavily weighted toward studio, micro and smaller one-bedroom apartments, Swingruber said, with the goal to offer rents in the high $1,400s or low $1,500s.

In addition to the natural amenities and central location between downtown St. Paul and Minneapolis-St. Paul International Airport, the project has several big attractions, Swingruber said. One is the site’s location in an opportunity zone, a designation created in the 2017 federal tax law that offers investment incentives for development projects in low income communities. The second is a generally hot housing market with considerable unmet demand in St. Paul and the surrounding cities.

A third bonus is that St. Paul’s 2040 Comprehensive Plan update, which has yet to be ratified, is expected to impose new restrictions on development for at least a portion of the city’s riverfront, Swingruber said.

“We like the site due to the fact there’s going to be a limited amount of sites along the river. The [2040] plan is going to be revised to limit building along the river,” he said. “I look at the site as an opportunity to be one of the last to build something that’ll be increasingly more difficult.”

Swingruber noted, however, that Stoneleigh has worked with other stakeholders to respect the spirit of the proposed 2040 Plan changes. After conversations with the Friends of the Mississippi River, Stoneleigh agreed to a 100-foot waterfront setback rather than the 50-foot setback required under current code.

“We haven’t been greedy either in the number of units we want to do,” he said. “Current zoning affords us the opportunity to build up to 375.”

In March, the district council, West 7th/Fort Road Federation, voted to support the project at its proposed height, although board members noted in their letter to the city Planning Commission their concern about the district’s need for affordable housing. Still, the council wasn’t about to turn away a large market-rate project, federation Board President Dana DeMaster said in an interview.

“For us, a lot of the discussion in terms of the positives was increasing the number of housing units. There’s a shortage city- and metro-wide of housing units, and especially rental apartments,” she said. “Also right now, there’s no public access to that part of the river, so this will increase accessibility for people.”

Swingruber said Stoneleigh has spent more than eight months working with the district council and other stakeholders to ensure the project, the company’s first in Minnesota, will be a success.

“We’ve spent an incredible amount of time making sure we’re cognizant of everyone’s concerns and wants,” he said.

Frisco – Dallas News

Frisco Council to vote on PGA deal that would bring hotel, courses and majors to North Texas

Dallas News | Karen Robinson-Jacobs Brad Townsend | November 30, 2018

The PGA plans to move from its longtime home in Florida to a newly built campus at the northern edge of Frisco in a deal that could cost more than $500 million, three sources familiar with the project told The Dallas Morning News Friday.

The project would include a new 500-room resort by Dallas-based Omni Hotels & Resorts, the new 100,000-square-foot headquarters building, two championship-level golf courses and a 9-hole practice course.

It will also include a guarantee that two PGA Championships, two Women’s PGA Championships and multiple men’s Senior PGA Championships will be played in Frisco, sources said.

The cost for creating the golf courses and a clubhouse is estimated to be about $80 million, one source said.

The Frisco City Council is scheduled to vote on the deal Tuesday.

The PGA issued a statement late Friday saying that it is “pursuing an agreement for a transformational headquarters in Frisco. Until the process is complete, we will have no further comment.”

Most officials close to the project were sworn to secrecy ahead of Tuesday’s vote.

Frisco City Manager George Purefoy said the project isn’t a done deal until it is approved by the council and that the details will be released at Tuesday’s meeting.

“It certainly would be another project on the magnitude of several of the other sports-related deals that we’ve done,” Purefoy said.

Much of the project is still being designed, but one source familiar with the details said the development would include about 30,000 square feet of retail space.

The PGA project would be developed by a newly created partnership of Omni, owned by billionaire Robert Rowling, real estate company Stillwater Capital and Woods Capital. Jonas Woods was a key developer of the Trinity Forest golf course in South Dallas that is now home to the AT&T Byron Nelson.

The Frisco council’s Tuesday agenda calls for it to “consider and act upon the proposed master development agreement for facilities and related improvements by and between [the] city of Frisco, the Frisco Community Development Corporation, the Frisco Economic Development Corporation, the Frisco Independent School District, Omni Stillwater Woods Golf Resort LLC and The Professional Golfers Association of America.”

A separate item says the council will “deliberate the purchase, exchange, lease or value of real property located south of US 380, north of Panther Creek Parkway, east of Teel Parkway and west of Preston Road.”

Neither agenda item gives further details on the project.

Rumors have been swirling for months that the Florida-based golf association would join Jerry Jones and the Dallas Cowboys in Frisco, which is home to seven professional sports teams, including FC Dallas.

The new Omni would be about a 10-minute drive from the Omni hotel at the Cowboys’ Star in Frisco.

Founded in 1916, the PGA has nearly 29,000 men and women members in 41 sections across the country. The Dallas-based Northern Texas PGA section was established in 1968.

The PGA’s stated missions include establishing and elevating the standards of golf instruction and expanding interest and participation in the sport.

Starting in 1929, the men’s professional tour in the United States was operated by the PGA, but in 1968, the professional tour players voted to operate independently from club professionals, thus creating the PGA Tour.

The PGA continues to stage one of the four men’s major tournaments, the 100-year-old PGA Championship, as well as the biennial Ryder Cup, the women’s PGA Championship, Senior PGA Championship and about 30 tournaments for its members and apprentices.

On Nov. 9, the PGA, during its 102nd annual meeting, elected its first female president, Suzy Whaley.

The PGA has been headquartered in Florida since 1956 and in Palm Beach Gardens since 1981. News of the PGA’s potential move to Frisco surfaced in a Golf.com report in March.

On the eve of this year’s PGA Championship in August, outgoing PGA CEO Pete Bevacqua acknowledged the association’s interest in Frisco.

“That’s still certainly a possibility,” he said, “but it’s also a possibility that we’ll stay in southern Florida or even look at opportunities around the rest of the country.

“And really, this is something that started two years ago, where we all came to the conclusion that those current buildings, while in a wonderful part of the country, just were not getting it done for us.

“And as we went out and started to talk to people about potential opportunities, we had a lot of interesting offers come our way.

“And certainly the opportunity in Frisco stood out from the others.”

Bevacqua’s comments came during the same week in which The News reported that Hunt Realty Investments had purchased Frisco’s 2,544-acre Headquarters Ranch from the estate of Bert Fields Jr. The land for the PGA project was once part of that ranch, a source said.

Frisco – Time.com

The Best Places to Live in America

Time.com | Shaina Mishkin | September 20, 2018

No. 1
Frisco, Texas

Gearbox Software president Randy Pitchford could have moved his video game company anywhere. But ultimately, the California native picked Frisco, Texas, a city 30 miles north of Dallas, as the site of the company’s new headquarters.

“I don’t regret it,” Pitchford says, reflecting on the 2015 move to Frisco from nearby Plano. “It’s actually been better than we expected.”

Pitchford is not the only one picking up and moving to the north Texas city. A sleepy bedroom community of 6,500 people as recently as 1990, the city today houses around 180,000 residents. Jobs are projected to grow by nearly 15% over the next four years, according to Moody’s Analytics, and companies from T-Mobile to Oracle have offices in the city.

Frisco’s growth, while impressive, is not necessarily unusual for Texas. The state has grown by 3 million people since 2010, more than any other in the U.S., while its local economies are going strong. “Job growth is expanding in Texas as fast as anywhere,” says Susan Wachter, a professor of real estate at the Wharton School of the University of Pennsylvania. “Firms are moving to provide jobs where houses are affordable, and people are moving to jobs where the cost of living is not high.”

But growth alone is not what makes Frisco the best place to live in America. Rather, it’s the way the city has translated its growth into a higher quality of life.

“The mentality here is, Let’s build the place we all want to have fun in and live in,” says Pitchford. While the company considered going as far as Quebec, “by every metric we had, Frisco came out on top,” Pitchford says.

One of those metrics: Frisco’s outstanding public schools. With more than 70 campuses, the Frisco Independent School District has the highest graduation rate of all the cities and towns MONEY evaluated this year.

“I can afford private, but the public school system here is so great,” Pitchford says, citing the district’s career training center, which offers high school students the opportunity to gain real-world experience in specialized programs from hospitality to health science.

Like many Frisco institutions, the schools have benefited from a city focus on public-private partnerships — arrangements that bring high-level sports, art and technology to the Texas town.

Take the Ford Center at The Star, an indoor athletic facility where the Dallas Cowboys have practiced since 2016. It was built as a partnership between the team, city government and the Frisco schools — so when the Cowboys aren’t using the indoor field, high school teams get it for practice and games. It’s a model that began in 2003, when the city partnered with two business groups to build Dr. Pepper Ballpark, now home to the Frisco RoughRiders baseball team.

Local officials have worked similarly with Drive.AI, a California-based self-driving car company, to bring driverless car testing to Frisco — a project the city hopes will ease transit for residents while boosting business in Frisco’s entertainment district.

For all of Frisco’s growth, there are trade-offs. Christie Smith, who moved to Frisco 10 years ago, says she is glad she bought a home when prices were lower. In the first quarter of 2018, the median home price reached $349,000. That may sound cheap to some coastal readers, but it’s well above the median U.S. home price.

“Frisco does not have the same affordable homes anymore,” Smith says. “We’re glad we got in when we did.”

Still, Smith says, the growth has done more good than bad to the community. When she moved to the area with her husband in 2008, she says, Frisco’s most notable landmark was an IKEA. Now, she adds, between concerts, games and charity runs, “you could be doing something every night of the week.” — Shaina Mishkin

Lofts at Red Mountain – Strawberry Days Festival

The Glenwood Springs, CO Strawberry Days Festival was a huge success. The event was picture perfect with sunny skies and a park packed with attendees. The Lofts at Red Mountain booth was a hot spot for guests to grab some shade and water. Over a thousand bottles were given out on Friday alone!

Thank you to all who came out and saw us at the festival. If you didn’t get a chance to stop by, you can reach us at info@LoftsAtRedMountain.com, or keep up with the latest on our Facebook and Twitter.

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Clarksville – Wall Street Journal

RISING STARS

Wall Street Journal | Patrick Thomas | May 19, 2018

As Silicon Valley gets saturated, three under-the- radar towns jockey to be the next tech hotspots.

THE RECENT HIGH-PUBLICITY effort by Amazon to place its second headquarters anywhere but the Bay Area underscores a bigger trend: Major corporations, especially techy ones, are moving away from the coasts and planting flags in smaller but fast- growing U.S. metro areas in order to cash in on lower operating expenses and cost of living, not to mention less traffic.

“You’re getting this relatively sophisticated workforce that’s being encouraged to move,” says Sean Worker, CEO of BridgeStreet Global Hospitality, a company that assists with business travel. “In turn, the towns start to get the financing and infrastructure.” With more than 160,000 accommodations in 81 countries, BridgeStreet studies where development dollars are headed, including these surprising boom towns.

CLARKSVILLE, TENNESSEE
Worker believes the skillset of the people, access to clean energy and strong partnership opportunities are what led to a major investment in the city of 150,000 people on the Kentucky border. “Google broke ground in February on a $600 million data center on 1,300 acres,” he says. “And LG is spending $250 million to build an 829,000-square-foot home appliance factory slated to employ 600 workers.” There’s plenty to do, from strolling the riverfront and hiking the Clarksville Greenway to wandering the Customs House Museum & Cultural Center (above)—but Worker’s pick is D&D Black Light Mini Golf for a round of golf.

25N Coworking – Community Impact Newspaper

25N Coworking to offer a new type of working space in Frisco

Community Impact Newspaper | May 4, 2018

25N Coworking will open in August at 9355 John W. Elliott Drive, Frisco. The co-working space will include meeting and event spaces, private offices, an onsite community manager and concierge services, office equipment, a break room, a fitness studio and outdoor workspace. www.25ncoworking.com

One Uptown – Blueprint Magazine

Luxury to match Dallas’ most walkable neighborhood

Blueprint Magazine | E.C. Gregg | December 12, 2017

Uptown has often been classified as Dallas, Texas’ most walkable neighborhood. Boutiques, bistros, biking, vintage shopping—all are accessible in an afternoon’s stroll.

It’s an eclectic community that Stoneleigh Companies had its eyes on, so much so that in 2013, the Barrington, Illinois-based developer with Texas connections, made Uptown the location of what it’s calling its most luxurious project.

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Known as One Uptown, the 20-story high-rise includes 196 apartments—studios to luxury penthouse suites. Designed by Phillip Shepherd, the founder of PWS Architects Inc., a well-known architecture firm in the area, the tower is distinguished by a flowing facade that gives the impression of a glass wave rippling through the air.

The first floor includes Fogo De Chão, the iconic Brazilian steakhouse, and Circo, a Tuscan-inspired spinoff of Le Cirque, the renowned French restaurant.

“Uptown is one of those neighborhoods that is representative of other major metropolitan areas that Dallas is catching up to,” says Vice President of Development Ryan Swingruber. “With this project, we are trying to address the needs of the city’s changing demographics.”

Thus far, it seems Dallas is responding well to its new addition, he says. While One Uptown was officially completed in June 2017, eager millennials and baby boomers—the target demographics—were moving in back in February, setting the ceiling for the highest rents in the Dallas Fort-Worth area.

To each their own market
One Uptown is not Stoneleigh Companies’ first development in the Lone Star State.

Before moving to Chicago in 1991, CEO and Founder Richard F. Cavenaugh spent his early career developing residential properties in Dallas and Houston.

During that time, Cavenaugh built relationships with local real estate companies and architects. When he started Stoneleigh Companies in 2008, at the start of the Great Recession, Cavenaugh was able to use those connections to acquire distressed multi-family properties back in Texas.

OUPT--2

For the first four years, Stoneleigh Companies focused primarily on acquiring existing multi-family real estate, but “as the economy recovered in 2012 and values came back stronger than ever, the company decided it was time to adjust and began developing its own properties, as well,” Swingruber says.

Since then, Stoneleigh Companies has developed multi-family apartment high-rises and garden-style communities across Texas, Illinois, Colorado and Tennessee.

“We have a set of standards that we take with us no matter where the job is,” Swingruber says. This begins with using superior building materials and methods, but Swingruber says it is diving into the details where the company truly shines.

Stoneleigh Companies pays special attention to the floor plan of each apartment, searching for ways to maximize space and providing unique finishing touches with the addition of USB ports, Bluetooth speakers, LED light fixtures and compartmentalized closets.

“The amenity package is also a premium in our buildings because we offer more livable square footage than most of our competitors,” Swingruber says.

Stoneleigh Companies also sees amenities as an opportunity to add a little local flair.

“When we enter a new community, we go in and try to understand not only what is driving the housing market, but what people want out of their ideal living situation,” Swingruber says.

In the case of a fitness center, for instance, this means discerning whether people need a traditional gym with machine weights and dumbbells or a yoga studio with crossfit equipment. Swingruber says similar considerations are made for flooring, colors, countertops, cabinets and “everything in between.”

Luxury at every age
In the case of One Uptown, Stoneleigh Companies wanted to offer people of every age the perfect luxury home.

“Everyone knows that the number one renting demographic are millennials, but what surprises people is that right behind that is baby boomers and empty nesters,” Swingruber says.

Stoneleigh Companies also understood that the needs of 20-somethings just entering the workforce would be extremely different from retirees looking to downsize. To accommodate both sides of the spectrum, the company included a range of apartment styles, from efficient one-room studios to luxury penthouse suites.

Complicating matters, zoning requirements limited Stoneleigh Companies to 200 units instead of the more standard 300. “So we had to ask ourselves, how do we make this project not only feasible, but desirable?” Swingruber says.

In addition to accommodating multiple lifestyles, Stoneleigh Companies decided One Uptown would also have amenities usually found at a luxury hotel.

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The development is the only Class A high-rise in Dallas with two pools. One is located on the rooftop and offers a 360-degree view of the surrounding city. The other is located on the second floor and was designed with a glass bottom that looks down into the porte-cochère. Here, residents enjoy a full-service bar, DJ booth, cabanas and food from Circo, the restaurant on the first floor, and charge it to their room.

“It’s turned into a very exciting project because we’ve addressed the needs of two extremely different demographics in the same project,” Swingruber says.

One Uptown – Multi-Housing News

2017 MHN Excellence Award Winners

Multi-Housing News | IvyLee Rosario | November 7, 2017

The 2017 MHN Excellence Award Winners represent the multifamily sector’s most innovative and ingenious achievements. Whether transforming an obsolete property into a 21st-century community, creating a cutting-edge design, or turning around an underperforming asset, the designers, developers, executives and real estate managers recognized here set a high bar. Also recognized are outstanding executives, top property managers and future stars.

Winners of this year’s Gold and Silver awards were honored at an event Oct. 19 in New York City. Stay tuned for details about the 2018 Excellence Awards.

DEVELOPMENT & DESIGN: HIGH-RISE
Silver: One Uptown
This 20-story mixed-use Dallas development features 198 energy-efficient apartments; 18,500 square feet dedicated to retail and two restaurants; and a 475-space underground parking garage. Judges thought the inclusion of two restaurants was impressive and also noted the building’s eye-catching sinuous forms. One Uptown faced the challenge of an oddly shaped footprint, but Humphreys & Partners Architects offset the hard angles of the tract by designing a curvilinear exterior. Glass, concrete and metal were used throughout the entire project, giving it a sense of motion.

25N Coworking – Crain’s

The latest thing in the suburbs? Co-working offices.

Crain’s | October 27, 2017

As a freelance writer and marketing consultant, Patti Minglin’s morning routine had more than a sense of urgency. After sending the last of her three children off to school, she had to get to the local Starbucks in Naperville in time to land a chair near an outlet that would allow her to plug in her laptop and work through the morning, fueled by coffee. There were plenty of other solo workers seeking to escape from home offices lined up for seats each day.

These days Minglin no longer dashes to Starbucks from her home in Aurora. She has joined a startup co-working development aimed at female entrepreneurs like herself, called Klique Creative, on the second floor above a jewelry shop in downtown Naperville. Minglin, 48, who used to be associate publisher at Chicago Parent magazine and now owns Go Girl Communications, works most days at a communal table along with other writers, web designers or public relations ​ consultants sealed off by their earbuds. “It’s a very creative environment,” she says.

In big-city downtowns, co-working spaces have been an option for members of the gig economy for several years. Now co-working is coming to the suburbs. People who have found home offices claustrophobic and coffee shops too public are seeking shared office spaces where they can park their laptops all day long for a fraction of the price of a conventional rented office and maybe even get more work done.

These places have names like Co-Optim in Deer Park, Suite Spotte in La Grange, Hub 83 in South Barrington, 25N Co-working in Geneva and the Elgin Technology Center. The big daddy of all is Regus, a Luxembourg-based chain that has 20 Chicago locations, mostly downtown, and two dozen more in the suburbs, from Lake Forest to Orland Park. (WeWork, which has six sites in downtown Chicago, isn’t among the suburban hosts.)

Still, shared workplaces are fewer and farther between beyond the city limits. Real estate services firm Newmark Grubb Knight Frank estimates in a recent study that there were 50 co-working facilities occupying 1.3 million square feet in downtown Chicago in 2016. By next year, the study forecasts, their ranks will increase to 86 encompassing 2 million square feet. In suburban Chicago, roughly 45 co-working facilities lease close to 400,000 square feet today, but more are on the way.

“Until now this has been mostly an urban phenomenon,” says Jamie Russo, executive director of the Global Workspace Association in Palo Alto, Calif. “But it’s becoming clear that co-working represents the future of work in the suburbs, too.” She estimates there are 14,000 co-working facilities in the U.S. currently and projects that total will almost double to 26,000 by 2020.

The early thinking was that suburban co-working would appeal mostly to housewives moonlighting part time in internet sales hungry to get out of the house. But it hasn’t turned out that way.

Adil Mohammed, a bankruptcy and immigration attorney, has taken a small office in the Elgin Technology Center and utilizes a Regus office in the Loop on days when he’s meeting clients downtown. He pays $550 a month for his Elgin space. “A decent office would cost me $900 a month, and that wouldn’t include utilities and the fast high-speed internet service I now have,” says Mohammed, 42. “I’m constantly on the road driving to meet with clients all over. So co-working is perfect for a mobile guy like me.”

Neil Morgan, 50, owns Cobalt Solutions, which provides cloud-based human resources services and is based at Co-Optim in Deer Park. He has seven employees, most spread around other co-working spaces. “Co-Optim gives me great flexibility to expand or contract my business without worrying about leasing real estate long term,” he says. “I’ve tried working from home, but there is always the laundry to be done or the dog to be let out. You don’t have those distractions in co-working space.”

RESOURCE FOR COMPANIES

Operators are encouraged. Mara Hauser, 56, an interior designer, started 25N in Geneva in 2014 with 10,000 square feet in a vacant bank building. In August she took an additional 5,000 square feet and now counts a roster of 200 tenants, up from 20 in her first year. She opened a co-working branch in 12,600 square feet in a former hotel in Arlington Heights and is expanding there by 4,000 feet soon. She’s got plans for a space in suburban Dallas and another in Orlando, Fla.

“We’ve become an important resource for companies looking to staff month to month who don’t want to worry about arranging for copy machines and Wi-Fi and furnishings. We have all that for them here,” Hauser says. She has local restaurants provide lunches, and she hosts happy hours and breakfasts for her tenants. She has a fitness studio and telephone rooms and meeting rooms for tenants, too. Prices range from $35 for a day pass to $365 a month and more for private offices.

Rick Cavenaugh, president of Stoneleigh in Barrington, which owns and develops office and apartment buildings around the suburbs, is a co-developer with Hauser in both Arlington Heights and Dallas. He thinks more landlords will catch on eventually. “The co-working crowd makes a building seem more vital and alive,” he says. “You won’t get contracts with companies like IBM, but you will bring in a nice mix of small and medium-sized businesses.”

Many of the tenants are software specialists. Forty-year-old Brian Kothe, who keeps a desk at 25N in Geneva, a few blocks from his home, is a programmer who writes computer code all day long for Sentric, a payroll and benefits processing company in Pittsburgh. His company initially asked him to work from a home office but eventually agreed to pay for his co-working desk. “Hey, it gets lonely at home,” Kothe says. “I prefer to be around other people. If I weren’t here, I’d be at Starbucks.”

He could have Minglin’s old spot.

Stoneleigh Construction Company – Construction Today

Stoneleigh Construction Company brings three new apartment complexes to Texas.

Construction Today | Kat Zeman | October 4, 2017

When it comes to providing luxury living, Stoneleigh Construction Company knows how to bring it. The Barrington, Ill.-based company is bringing not just one but three new luxury multifamily developments to Texas.

The firm finished construction on a 340-unit apartment complex in June and has two more luxury complexes under construction, with a targeted completion date in 2018. “Right now, Texas happens to be a great market,” President Steve Niles says.

Aside from Texas, Stoneleigh has developed projects in Arizona, Colorado, Nevada, Florida and Illinois. Its newest development, a $33.5 million apartment complex of 16 buildings in Spring, Texas, is ready for occupancy. Waterford Trails is a 340-unit luxury complex that features two- and three-story garden-style buildings with an assortment of amenities. “I think its architecture is timeless,” Niles says. “We’ve tried to introduce a lot more single-family detached residential details and material applications.”

The apartment community offers one-, two- and three-bedroom units with stainless steel appliances, custom closets, granite or quartz countertops, maple wood cabinetry and luxury vinyl hardwood floors. Select units include private fenced-in “puppy patios” and attached garages.

Outdoor amenities include two barbecue pavilions, a covered open-air living room with an 80-inch outdoor HDTV, fireplace and a resort-style pool with tanning ledge and poolside cabanas. The complex also features a clubhouse, an intimate wine room with reserved wine lockers, cyber café, full demonstration kitchen and two lounge areas with a television and Wi-Fi access. Its 1,300-square-foot fitness center is equipped with Precor fitness equipment and state-of-the-art HD entertainment consoles that offer 150 channels of entertainment programming.

Master Plan

Stoneleigh recently saw an opportunity to bring another luxury apartment community to one of the fastest-growing and most sought after-suburbs of Dallas. A 585-unit apartment complex is under construction on roughly 10 acres in downtown Frisco. The $98 million complex is a two-phase project called Waterford Market.

The first phase includes the construction of a 381-unit building, slated for occupancy in 2018. Phase two, a 306-unit building, will follow in fall 2019. “Waterford Market is a part of the Frisco master plan,” Niles says. Stoneleigh box

The two buildings will be a part of the city’s master plan that calls for additional office space, retail shops, residential developments and parks in the heart of downtown. “This creates another central core area,” Niles says. “All of that will become available to our residents within walking distance.”

The city has experienced unprecedented growth over the past decade and currently has more than $5 billion of commercial development underway which will create demand for institutional-quality apartment homes. The amenities at Waterford at Frisco will be unique in the North Dallas market, Niles says.

Adjacent to a retail park as well as a Frisco Fresh Market, the new complex will have a mixture of indoor and outdoor living amenities. Features include club rooms, game rooms, internet cafes on the second floor, outdoor patios, healthy snack vending machines, a dog wash area, and bike storage and repair facilities. Each building will also have a state-of-the-art fitness facility with 145-channel HDTV-equipped cardio equipment and a spin and yoga facility within an open-air environment that connects with each building’s pool deck and outdoor courtyard facilities.

Amenity-Studded

Another luxury complex is under construction in Carrollton, Texas. This $27.5 million, 232-unit apartment complex will feature two buildings that sit on roughly four acres of land strategically located at Interstate 35 and near the DART Rail Downtown Carrollton Station.

Units inside the Switchyard complex will feature stainless steel appliances, custom closets, granite or quartz counters, maple wood cabinetry and simulated hardwood floors – just as at Waterford Trails. Select units will have access to reserved tuck-under parking.

Community amenities will include a large fitness center with Precor fitness equipment, state-of-the-art HD entertainment consoles providing 150 channels of entertainment programming and a dedicated fitness-on-demand facility. The two buildings will share a tech lounge, java bar featuring freshly brewed coffee and cold brew coffee on tap, recreational lounges, a barbecue grilling area, bike storage and repair facility, dog salon and a resort-style pool with tanning ledge, a bar area and poolside cabanas.

Lofts at Red Mountain – REBusiness Online

Stoneleigh Cos., Realty Capital Management to Develop 85-Unit Apartment Complex in Glenwood Springs

REBusiness Online | Nellie Day | September 28, 2017

GLENWOOD SPRINGS, COLO. — A joint venture between Stoneleigh Cos. and Realty Capital Management has acquired 3.8 acres of land to build The Lofts at Red Mountain Apartments, an 85-unit apartment community with ground-floor retail in Glenwood Springs. The land is situated at south of Wulfsohn Road, adjacent to the Glenwood Meadows Market Street and Shopping Center.

The Lofts at Red Mountain has an on-site RFTA bus stop, situated next to the Glenwood Springs Community and Recreation Center. It is also adjacent to the Glenwood Springs trail system. The developers have already broken ground on Phase I, with completion scheduled for early 2019.

RVC Construction is building the project, which KCB Architecture designed. SunGate Capital Funding 7 LLC, Stoneleigh Cos. LLC and Realty Capital Partners provided equity financing.

Lofts at Red Mountain – Daily Herald

Barrington firm starts apartment project in Colorado

Daily Herald | September 27, 2017

Barrington-based Stoneleigh Companies, in partnership with Dallas-based Realty Capital Management, announced the acquisition 3.85 acres for the construction of The Lofts at Red Mountain Apartments located in Glenwood Springs, Colorado.

Phase I has broken ground and will consist of 85 apartments and 5,300 square feet of retail shop space on 2.01 acres south of Wulfsohn Road, adjacent to the Glenwood Meadows Market Street and Shopping Center.

“The beginning of construction marks a significant milestone for all of Glenwood Springs,” said Richard Myers, Managing Director for Realty Capital Management. “We have been working to bring new housing to the Roaring Fork Valley for quite some time and look forward to developing Class A apartments for area residents.”

The Lofts at Red Mountain Apartments will feature 85 Class A luxury apartments consisting of studio, one, and two-bedroom units. Residences will range from 555 to 1,266 square feet offering high end finishes including quartz countertops, luxury vinyl hardwood-style floors, stainless-steel appliances, in-unit washer and dryer, and balconies with picturesque mountain and valley views. Community amenities include a resident clubroom with demonstration kitchen, tech lounge, fitness center and yoga studio, outdoor entertainment space with a grilling and dining pavilion and fire pit, bicycle storage, and private garage parking with electric car charging stations.

The property is located just west of downtown Glenwood Springs, on Wulfsohn Road in the Glenwood Meadows retail development, the area’s largest shopping center. The Lofts will bring an urban lifestyle to the Glenwood Springs community and will offer units and amenities above and beyond what is currently available in the area. In addition to its proximity to the Glenwood Meadows, the project has an on-site RFTA bus stop, is located next to the state-of-the-art Glenwood Springs Community and Recreation Center, and is adjacent to the Glenwood Springs trail system.

The project has been designed by Keith Bennett, founder of KCB Architecture in Salt Lake City, Utah. Local contractor Gould Construction will be performing the underground and utility work with RVC Construction out of Salt Lake City, UT working as the general contractor.

Lofts at Red Mountain – Post Independent

Lofts housing project finally breaks ground at Glenwood Meadows

Post Independent | John Stroud | September 26, 2017

Site and utility work has begun to make way for the first 85 housing units to be built at Glenwood Meadows since the Glenwood Green Apartments were completed four years ago.

Phase I of the larger, 185-unit Lofts at Red Mountain Apartments, as well as 5,300 square feet of street-front retail shop space, is now underway.

The project has been some five years in the planning and Glenwood Springs’ city approval process.

Recently, Chicago-based Stoneleigh Companies, in partnership with Dallas-based Realty Capital Management, formally acquired 3.85 acres on the south side of Wulfsohn Road for the project.

“The beginning of construction marks a significant milestone for all of Glenwood Springs,” Richard Myers, managing director for Realty Capital Management, said in a prepared statement. “We have been working to bring new housing to the Roaring Fork Valley for quite some time and look forward to developing Class A apartments for area residents.”

Last May, Glenwood City Council denied a request by the developers for some $1 million in impact fee waivers for the free-market apartment project.

Council members were concerned rent wouldn’t remain affordable over time without deed restrictions to maintain below-market rates for at least some of the units.

Myers and his development team said the smaller unit sizes planned for the project would keep them affordable, and that deed restrictions would have made it difficult to obtain financing.

“The city did do some reductions for us, but not what we thought was enough,” Myers told the Post Independent Tuesday. “We were also able to reduce some of the costs to make it work.”

Based on the current market, the efficiency studio units will likely start at $1,100 per month, with higher rents for the one- and two-bedroom units. The apartments are to range in size from 555 to 1,266 square feet, according to a news release announcing the groundbreaking.

“We should be ready with the first units by next fall, but hopefully sooner than that,” Myers said. Pre-leasing is expected to begin in the spring of next year, he said.

Gould Construction is currently doing the site grading and underground utility work. The builder will be RVC Construction out of Salt Lake City.

The Lofts apartments are to feature high-end finishes including quartz countertops, luxury vinyl hardwood-style floors, stainless-steel appliances, in-unit washer and dryer, and balconies. A resident “club room” will have a demonstration kitchen, tech lounge, fitness center and yoga studio, outdoor entertainment space with a grilling and dining pavilion and fire pit, bicycle storage, and private garage parking with electric car charging stations.

Lofts at Red Mountain – Stoneleigh Companies, LLC

Stoneleigh Companies/Realty Capital Management Announce the Groundbreaking of The Lofts at Red Mountain Apartments

(September 26, 2017) –Chicago-based Stoneleigh Companies, in partnership with Dallas-based Realty Capital Management, announce the acquisition 3.85 acres of land for the construction of The Lofts at Red Mountain Apartments located in Glenwood Springs, Colorado. Phase I has broken ground and will consist of 85 apartments and 5,300 square feet of retail shop space on 2.01 acres south of Wulfsohn Road, adjacent to the Glenwood Meadows Market Street and Shopping Center.

“The beginning of construction marks a significant milestone for all of Glenwood Springs,” said Richard Myers, Managing Director for Realty Capital Management. “We have been working to bring new housing to the Roaring Fork Valley for quite some time and look forward to developing Class A apartments for area residents.”

The Lofts at Red Mountain Apartments will feature 85 Class A luxury apartments consisting of studio, one, and two-bedroom units. Residences will range from 555 to 1,266 square feet offering high end finishes including quartz countertops, luxury vinyl hardwood-style floors, stainless-steel appliances, in-unit washer and dryer, and balconies with picturesque mountain and valley views. Community amenities include a resident clubroom with demonstration kitchen, tech lounge, fitness center and yoga studio, outdoor entertainment space with a grilling and dining pavilion and fire pit, bicycle storage, and private garage parking with electric car charging stations.

The property is located just west of downtown Glenwood Springs, on Wulfsohn Road in the Glenwood Meadows retail development, the area’s largest shopping center. The Lofts will bring an urban lifestyle to the Glenwood Springs community and will offer units and amenities above and beyond what is currently available in the area. In addition to its proximity to the Glenwood Meadows, the project has an on-site RFTA bus stop, is located next to the state-of-the-art Glenwood Springs Community and Recreation Center, and is adjacent to the Glenwood Springs trail system.

The project has been designed by Keith Bennett, founder of KCB Architecture in Salt Lake City, UT. Local contractor Gould Construction will be performing the underground and utility work with RVC Construction out of Salt Lake City, UT working as the general contractor. Equity financing has been provided by Orlando-based SunGate Capital Funding 7, LLC, Stoneleigh Companies, LLC and Dallas-based Realty Capital Partners. The Lofts at Red Mountain is anticipated to open in early 2019.

About Stoneleigh Companies, LLC
Based in Chicago, Stoneleigh Companies is a private real estate investment company focused on acquisition and development of multifamily properties, with a track record of over 40,000 multi-family units in 35 cities and 18 states over the last 35 years. The principals and officers of Stoneleigh are experienced in all aspects of commercial real estate development, investment, finance, and operations. For more information, visit www.waterfordresidential.com.

About Realty Capital Management, LLC
Realty Capital was founded in 1987 and over the past 30 years has developed over 3,500 residential units and more than one million square feet of commercial buildings. In 2011, Realty Capital became an employee-owned firm with Richard Myers, Jimmy Archie and Tim Coltart serving as Managing Directors. Realty Capital is currently partnered with industry leaders including Hillwood Communities, Stratford Land, Granite Land and Avanti Properties in development of mixed-use projects across the Southwest. For more information, visit www.realtycapital.com or contact Richard Myers at 817-313-5000.

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Download the Stoneleigh Release PDF

25N Coworking – D Magazine

Illinois-based 25N Is Latest Player on DFW’s Coworking Scene

D Magazine | Kevin Cushingberry | September 22, 2017

There’s another new player in the North Dallas coworking market. Illinois-based 25N Coworking has decided on Frisco as its first expansion outside the Chicago area.

Founder and CEO Mara Hauser says 25N tapped Frisco as the home for its third location after auditioning dozens of cities around the country. “To be able to have a workspace close to [residents] was something I was very excited about bringing to the community,” she says.

According to Hauser, 25N hopes to draw membership primarily from Frisco residents when it opens next April. “We’re not a very large corporation,” Hauser says. “We’re personal. We’re there to build a network of support.”

25N differentiates itself by locating in suburban markets (its first two locations are outside Chicago) where coworking demand has been largely untapped. Work spaces are well suited for suburban residents who may otherwise work from a home office, according to 25N.

Adding to its community focus, 25N will open 12,500 square feet on the ground floor of Waterford Market apartments, developed by Stoneleigh Cos. Waterford Market is located near Frisco and Main streets in Frisco’s $5 Billion Mile.

25N’s new space will offer fully-furnished private offices, team suites, dedicated desks, shared flex space, meeting rooms, event space, and virtual office packages. Select residential amenities and additional spaces will be accessible to members through an add-on Premier Membership option. Memberships start at $25 per month, day passes start at $35, and dedicated desks start at $365 per month.

“Frisco’s rapid development has resulted in an infrastructure that doesn’t necessarily provide the consistent technological amenities that its workforce requires,” Hauser says. “So we intend to resolve the unmet needs of Frisco’s independent worker population.”

25N will join LaunchPad City and Yeager Office Suites in Frisco and WeWork (which just announced its Fort Worth expansion) and Common Desk in nearby Plano. Hauser sees potential for 25N to expand elsewhere in Texas, specifically in North Texas.

Stoneleigh Companies – REBusinessOnline

Combination of Multifamily, Office Space is Hot Concept in Texas, Say InterFace Panelists

REBusinessOnline | Taylor Williams | September 15, 2017

DALLAS — Say the words “mixed-use” in commercial real estate circles today and generally the first thought that comes to mind is a property featuring a combination of multifamily and retail space.

But there’s no written rule that says what property classes can or can’t be included in mixed-use. As such, a number of multifamily developers in Texas are redefining the term’s scope and application by bringing together apartment living and an office component in newer projects.

As part of the InterFace Multifamily Texas conference, a panel of real estate experts convened Sept. 13 at the Westin Galleria in Dallas to address this topic and other emerging trends in the apartment sector, most of which center on ways of improving amenity packages for tenants. Approximately 200 real estate professionals attended the event.

The move toward developing apartment communities with office space — not business centers — stems from landlords’ need to differentiate their amenity packages from the competition. These new office elements within multifamily properties are taking a variety of forms in their infancy, ranging from large co-working spaces and conference rooms to individualized desks and cubicles.

“Having amenities like a knockout pool and an awesome fitness center doesn’t really set you apart anymore,” said panelist Greg Coutant, director of development at StreetLights Residential. We’re working to provide what we call ‘makers’ spaces,’ which are open spaces with desks where tenants can work. We’ve found that if you provide a cool working atmosphere with connectivity, people will work there.”

Coutant noted that residents are drawn to the live/work/play environment that these office spaces provide, all under the same roof. His firm, which undertakes projects in metros with thriving office sectors, including Dallas and Austin, is even considering putting bars in some of these spaces to further heighten their appeal.

Panelist Rick Cavenaugh, president of Illinois-based multifamily developer Stoneleigh Cos. said that his firm has also seen tremendous success from the inclusion of office components at its properties, specifically co-working areas that allow employees from different companies to occupy the same workspace and develop synergies with one another.

“Integrating co-working facilities into the living environment and making it part of the offering to tenants is different from what we’ve seen with the likes of WeWork,” said Cavenaugh. “We did this with a property in Chicago and it was a total hit. We have since leased 140 workspaces in five months, and it’s brought a ton of vibrancy, traffic and new tenancy to the building.”

Cavenaugh stated that his firm sees the trend as particularly appealing to consumers in submarkets with steep office rents, such as Frisco and Plano.

“In those submarkets, there’s just not that option for people to have an office for a few hours a day, three days a week, and then to be able to walk down the hall to their apartment,” he said. “It’s a different working environment, but one that definitely promotes flexibility. We’ve seen that Millennials like that flexibility.”

Panel moderator Drew Kile, director of Institutional Property Advisors, a multifamily brokerage division of Marcus & Millichap, noted that the trend also seems to have legs in Austin, where office rents have been rising for the past five-plus years.

“There’s a growing percentage of people in urban Austin who work from home,” said Kile. “The more workspaces you put into a building, the more they get used. Not so much a business center, but a place where they can bring their own laptops and have their own meetings.”

Tom Lamberth, regional partner of Dallas-based CF Real Estate Services and another conference panelist, sees as much monetary potential in these features as the other panelists see in their ability to generate positive word-of-mouth for the property.

“We’re working on making the office component more than just an amenity, but something you can monetize,” said Lamberth. “We have a property in Atlanta where inside the amenities center we built about 12 office cubicles that people can rent for a few hundred dollars a month. And we’ve had demand for these spaces from people who don’t even live in the building.”

While StreetLights, Stoneleigh and CF Real Estate have yet to iron out all the kinks of developing and leasing these office spaces in their multifamily projects, they have little doubt as to their ability to heighten the appeal of the property and cater to the preferences of tenants.