Atlanta Multifamily Jan 13, 2017 Jarred Schenke, Bisnow, Atlanta

The mixed-use division of development powerhouse The Related Group is determined to push forth on not one, but two apartment projects in Atlanta’s core this year. Steve Patterson Related Development Bisnow Related Development has already broken ground on Apogee Midtown and plans to do so soon on Apogee Buckhead, adding more than 350 units to each submarket when more than 11,000 new apartment units are underway within the city. That’s because, with Atlanta’s job growth and current apartment fundamentals, Related Development CEO Steve Patterson (on left) said he’s confident demand will be there once both projects deliver. “Apartment vacancies are the lowest they’ve been in 20 years, and we’re worried about the market falling apart on us?” Patterson said. “That’s nonsense.” Apogee Midtown Atlanta Courtesy: Related Development Already, Related has broken ground on Apogee Midtown, a 39-story, 390-unit apartment project (above) connected to a 77k SF Whole Foods Market on 14th Street in the heart of Midtown that is slated to open late next year. Patterson said Related is expecting some $2.50/SF in rents. The other project is Apogee Buckhead (below), a 35-story, 362-unit apartment tower at 3372 Peachtree Road in the heart of Buckhead, which will look to achieve rents at $2.60/SF. Units in Buckhead — a neighborhood on which Bisnow will host an event next month — will be slightly smaller than in Midtown, which will attract what Patterson said are more affluent and older renters. “Right now, I think in Buckhead, there’s probably 3,500 to 3,600 units under construction, and Midtown it’s pretty close,” Patterson said. “But we think that demand is pretty deep there, particularly for the larger units in Buckhead. This is a market that grows [by] 60,000 to 80,000 jobs a year.” Apogee Buckhead 3372 Peachtree Road Courtesy: Related Development According to Atlanta-based Haddow & Co, which tracks Class-A apartment performance within the Interstate 285 ring, the stock of more than 32,400 units tallied a 97.5% occupancy rate and more than $1,700/month average rents as of Q3 2016. But on its heels are another 11,400 units underway, with 10,000 more units planned. While there’s no definitive plans for concessions, Patterson said Related has added wiggle room in its pro forma for the two Atlanta properties to offer them if needed. Patterson said Related is eyeing more locations in Atlanta and beyond, despite the plethora of new product potentially hitting the market in the next 24 months. “There are markets out there other than Atlanta which are overbuilt today or about to be,” Patterson said, “but they’re not markets we’re active in right now.”

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The Related Group is pleased to announce that The Flats Luxury Apartments at CityPlace Doral is now available for lease. Delivering mid-January, the two-tower residential project will be comprised of 300 luxury studio, one-, two- and three-bedroom apartments with prices ranging from $1,645 to $3,600 a month. In addition to The Flats Apartments, CityPlace Doral’s residential component includes The Manor Apartments, another For Rent luxury apartment property, and Oasis, which was developed in partnership with Shoma Homes. The Manor Apartments in Doral is now available for move in, and Oasis is 90 percent sold with only eight homes left

The Flats Apartments is conveniently located atop CityPlace Doral, a master-planned community poised to become South Florida’s hottest destination for upscale living, shopping, dining and entertainment. At the ground floor of The Flats Apartments, residents will have direct access to the city’s very first Fresh Market as well as a collection of over 40 world-class retailers, including anchors like Kings America, CinéBistro and Improv Comedy Club.

“The Flats Apartments put residents in the thick of CityPlace’s live-work-play lifestyle,” said Steve Patterson, President and CEO of Related Development. “From the very onset of development, we aimed to offer an urban atmosphere within Doral’s suburban setting, and The Flats fulfills that goal. Residents can shop, eat, drink and go home all without ever getting in a car.”

CityPlace Doral features over 300,000 sq. ft. of retail space and is slated to open in early 2017.

TAMPA — Two major apartment projects — one in downtown St. Petersburg, the other on the water in Tampa’s Gandy Boulevard area — could start construction next year.

The Miami-based Related Group, one of Florida’s leading residential developers, announced Monday that it expects to close next week on the site of a proposed 15-story, 354-unit apartment building at 801 Central Avenue in St. Petersburg’s burgeoning Edge District.

On the Tampa side of the bay, Related is planning a four-story, 396-unit project just south of Gandy Boulevard and west of Westshore Boulevard.

“We are strong believers in (the Tampa metro area) and we want to be there for the long run,” said Steve Patterson, head of Related’s rental division. “There’s been great job growth, great population growth, property values are rising, it seems to be attracting young people into the urban cores both in St. Pete and Tampa — a lot of those things demonstrate demand for the right type of resident.”

Dubbed Town at Westshore Marina District, Related’s Tampa apartments will be on eight acres of a 52- acre site once planned for a grandiose development called New Port Tampa. That collapsed during the recession, and in 2015 BTI Partners of South Florida acquired the property. It has been marketing parcels to developers like Related.

Patterson said he could not disclose the land price of the apartment complex, which will cost about $80 million. Most of the units will have views of the water including Tampa Bay, he said. Two bedroom apartments likely will start around $1,800 or $1,900.

“We are obviously looking for employment centers and Westshore is a key center in Tampa,” he said. “The combination of being close to jobs and on the water made it extremely attractive. It has great access, (residents) will be able to get over to St. Pete quickly and also to downtown Tampa.”

Patterson said Related expects to close on its parcel in the next three or four weeks. BTI, which is awaiting final city approval of its master plan for the 52 acres, will be reopening roads, making other infrastructure improvements and putting in landscaping.

In addition to Related, BTI has “multiple buyers in place right now” for both residential and ownership projects, executive vice president Beck Daniel said Monday. BTI also is talking to groups interested in commercial and retail space.

In St. Petersburg, the as yet-unnamed Related project comes in the midst of a luxury apartment boom that has added some 2,000 new rental units to the market in the past few years. Within two blocks of the Related property are the newly completed, eight-story, 384-unit Hermitage and the future site of 930 Central Flats, a 218- unit, five-story building now under construction.

Despite some concerns that downtown St. Petersburg could be getting saturated with expensive apartments, Patterson said he thinks the demand is strong, especially among slightly older tenants.

“The people that are renting these high-end projects are more boomer than millennial,” he said. “With the home ownership rate falling as it has and people moving back into cities, that is driving the absorption rate.”

The site of the Related project is currently owned by a Tampa company that planned to put a four-story apartment building atop the 1926 Union Trust Co. bank, which is on the National Registry of Historic Places. Patterson said Related will demolish some later additions to the building, but preserve the original neoclassical structure for possible retail or restaurant use.

Construction on the apartments, which are near a new Publix and across the street from the Morean Arts Center, could start around June, Patterson said.

The Central Avenue apartments will be Related’s first project in Pinellas County. In Tampa, it is building the 304-unit, 21-story Manor on Harbour Island and plans a 400-unit rental complex on the site of the Tampa Tribune building on the Hillsborough River in downtown Tampa.

In June, the Tampa Housing Authority tapped Related for the $400 million West River redevelopment project that will include a mix of market-rate and subsidized housing units.

One of the largest Hispanic-owned businesses in the United States, Related has built, renovated and managed more than 90,000 condominium and apartment units. It developed many of South Florida’s best known condo towers, including the 41-story Trump Tower Hollywood.

Related advances apartment project in Fort Lauderdale with below-market rents

The Miami-based developer plans to build 150 apartments, mostly with below-market rents

December 03, 2016 03:30PM

600 North Andrews Avenue (Credit: Brittany Walman / Sun-Sentinel)

600 North Andrews Avenue (Credit: Brittany Walman / Sun-Sentinel)

Broward County endorsed a plan by Related Group and a partner to lease county land at Andrews Avenue and Sistrunk Boulevard and build apartments there, most of them with rents below market rates.

County commissioners voted November 29 to negotiate a land lease agreement with Miami-based Related Group and a company called Flagler Warehouse 1, co-owned by Doug McCraw, founder of the Flagler Arts and Technology Village, or FATVillage.

McCraw’s company and Related have formed a company called Related FATVillage LLC to build a mixed-use development with 150 apartments, including 109 that would be available at below-market rates.

Most of the apartments would have below-market monthly rents, including $1,631 for studios and $1,957 for two-bedroom units.

The development team tried to price the below-market units to keep rent from exceeding 30 percent of a tenant’s income.

The mixed-use development, called The Gallery at FAT Village, would have retail-store and art-gallery space on the ground floor.

Related FATVillage LLC would make payments on the county land lease over a 60-year term.

The county acquired the land at 600 North Andrews Avenue after a developer failed to build affordable housing there, one of two failed attempts to put below-market rentals on the property, county officials told the Sun-Sentinel.

Ralph Stone, executive director of the Broward County Housing Finance and Community Development Division, told the newspaper that Related FATVillage LLC isn’t seeking a subsidy, or land at little or no cost. [Sun-Sentinel] Mike Seemuth

Related Group under construction on Harbour Island tower, wants to begin Tampa Tribune project ‘ASAP’

A Miami developer is under construction on a 21-story apartment tower and plans to move quickly to begin another major development in downtown Tampa.

Related Group closed on the land for Manor at Harbor Island, at 402 Knights Run Ave., paying $12 million for the 1.27-acre site in a deal that closed in late February, according to Hillsborough County property records. It’s also secured a $60 million loan from Bank of America, according to property records.

“Construction is under way,” Arturo Pena, vice president with Related Group, said Wednesday.

In the coming months, Related expects to begin another big development: The demolition of The Tampa Tribune’s downtown offices to make way for another multifamily project.

Related closed on the Tribune’s waterfront real estate in late July, paying $17.75 million for the site. The Tribune signed a lease for its offices, which Pena said expires in late April or early May. The Tampa Bay Business Journal first reported on April 17 that Related was targeting the site for a redevelopment play.

“We’d like to start demolition as soon as possible, as early as May or maybe June,” Pena said. “And begin new construction in September.”

Despite the proximity of the two developments — they’re about one mile apart — Related doesn’t view them as competing projects. Pena said the group expects the Harbour Island tower to draw affluent empty nesters; the downtown project will likely attract a younger demographic.

Pena said Related remains bullish on the rental market and Tampa.

“We like the Riverwalk and we love what the mayor is doing — we love the amount of jobs,” Pena said. “The job growth is one of the metrics that we look at the hardest.”

Developers are setting the stage to begin laying out a new $60 million mixed-use project that will bring boutiques, eateries, a market and upscale lakefront rental homes to an orange grove in Maitland.

Miami-based Related Development LLC, an entity related to The Related Group, is seeking preliminary subdivision plat approval so it can create eight lots and seven tracts for the Maitland Concours North mixed-use development on 96 acres west of Maitland Avenue on the north side of Maitland Boulevard, city of Maitland documents showed.

A preliminary plat establishes formal lot lines for the project, as well as tract boundaries for internal roadways and other elements that are part of the planned development.

The property — owned by Winter Park-based Battaglia Group Management LLC’s related BPL Maitland Concourse North LLC — is one of the last remaining open large parcels in Maitland that can be developed.

Plans for the site include a 350-unit luxury residential rental community, both apartments and “Big House” townhome units, by Related Development plus a 130,000-square-foot, specialty grocer-anchored shopping center by Lake Mary-based Pelloni Development Corp., as previously reported by Orlando Business Journal.

The development is expected to bridge the gap between the Maitland Center office complex on the west side of Interstate 4 and the rest of the city, as OBJ previously reported.

It also will bring plenty of needed amenities to the area’s businesses and residents, while also providing upscale rental housing near a major regional jobs center.

The city council is expected to review the plat request at its Oct. 10 meeting. The request got recommended approval from the city’s planning and zoning commission in August and the development review committee on Sept. 29. More.

Tampa Housing Authority picks Related Group as lead developer on West River project

TAMPA — A Miami developer has been chosen to build the city’s signature West River redevelopment, a $400 million project intended to expand the revitalization of downtown west of the Hillsborough River.

The Tampa Housing Authority’s governing board today approved the selection of the Related Group as lead developer on the 20-acre project that includes the construction of 1,636 housing units apartments and 177,000 square feet of retail and office space.

The project area runs west from the Hillsborough River as far as Rome Avenue and north from Interstate 275 as far as Columbus Drive.

The first phase will include the demolition and redevelopment of North Boulevard Homes, the city’s oldest public housing project, and the Mary Bethune High Rise Apartments, a senior center located within the project.

In their place will be a mix of condos and apartments, some priced at market rate and some for use as subsidized housing.

Related was chosen from among six firms that bid for the project. Its recent developments in Tampa have been more upscale projects.

It is developing The Manor at Harbour Island, a 21-story, 340-unit tower planned next to Plaza Harbour Island and last year it bought the Tampa Tribune headquarters at 202 S Parker St. for $17.75 million for a mid-rise residential project on the 4-acre site that overlooks the Hillsborough River. Related also built the Pierhouse at Channelside.

But the company has experience developing affordable housing projects including Collins Park in Miami, a 124-unit apartment tower for seniors.

“This is very significant to have Related involved,” said Ben Wacksman, chairman of the housing authority. “There has been a tremendous amount of work done on this.”

City leaders envision West River as a walkable, mixed income community that will be further enhanced by the $35 million remaking of Julian B. Lane Riverfront Park, the most expensive park project in the city’s history.

Under the agreement with Related, at least 820 rental units and 30 percent of the for-sale homes will be affordable to families earning less than 80 percent and 120 percent of area median income, respectively, housing authority officials said.

The agency began relocating residents out of North Boulevard Homes and the senior center about a year ago. Those residents will be given priority if they want to return to the area once the project is built.

Steve Patterson has experienced what it’s like commuting on Maitland Boulevard.

The CEO and president of Miami-based Related Development LLC previously headed up Orlando’s Zom Development Inc., and he lived and worked in Maitland. So, he has some first-hand experience to lend to the project his current employer is working on: a piece of a new $60 million mixed-use development that may bring to fruition something he hoped for when he was a tenant in Maitland Center.

Related Development, a division of multifamily developer The Related Group, plans to build a 350-unit lakefront luxury multifamily complex with garden-style apartments and two-story attached homes similar to townhomes.

Related Development’s project will be joined by a 130,000-square-foot retail complex by Lake Mary-based Pelloni Development Corp. featuring a specialty grocer, trendy shops, a coffee house, and casual and upscale restaurants.

This is the same team that put together the original plans for Mills Park near downtown Orlando, which both companies sold in 2011 to Tampa-based DeBartolo Development Co. and Forge Capital Partners.

Together, the two new projects on Maitland Boulevard between Interstate 4 and North Maitland Avenue are set to help create a village-like atmosphere that will benefit not only those seeking a luxury, maintenance-free lifestyle but also for existing residents and workers in the city.

“The real amenity is this mixed-use concept where it becomes more about place making rather than doing a project,” Patterson told Orlando Business Journal. “It’s a residential complex that has a retail connected by streets and sidewalks, so people can go back and forth. It’s not being developed like two neighboring projects but, rather, will be interconnected by architecture and patterns.”

Though many neighboring landowners are opposed to the project — those who own homes on Lakes Charity, Hope and Faith have said they don’t want their current view across the lake to what’s now an orange grove to be marred by new development — Patterson said the buildings’ layout and the high-end architecture along with open spaces will continue to offer them pleasing views.

And in the process, the project will fill a need in Maitland for updated, upscale multifamily homes.

“Absolutely, this project is going to be successful,” Patterson said. “If you ask me, the Maitland multifamily submarket is a little underserved. There’s not a lot of new stock that’s been brought into market in the last decade, but there is demand for that. We hope to resolve that with this project.”

Here are some of the other things you can expect to see if Related Development’s portion of the project:

  • Big House: No, it’s not the gathering place of convicted criminals but, rather, a multifamily product created by Dallas-based Humphreys & Partners Architects Inc. The 96 lakefront Big House units at Related Development’s project will be stacked flats with private ground-floor entries like single-family homes, direct access into garages and more. “We had the option to do four stories, but we decided not to go that route based on what we heard from neighbors in [community meetings] we held,” Patterson said. “As rentals go, it’s pretty sophisticated.”
  • Breezeway: The 254 luxury apartment units will have similar grand entryways into the building and connecting sidewalks that also will lead to the retail portion. In addition, there will be covered parking in the back for residents and enclosed exterior breezeways between the units.
  • Amenities: The complex will offer high-end amenities popular at residential developments today, such as a clubhouse with a fitness center featuring weight room and aerobics/cycling/yoga room, plus some open space known as “great lawns” on the waterfront. Additionally, the walking paths will connect into Pelloni’s planned retail center, now being called The Shoppes.
  • Upscale appeal: As renting becomes a more desirable option for today’s workforce, this project features homes that will appeal to a higher-end of the demographic. Rents will likely range from $1,200-$3,000 per month. “These are relatively affluent people who are now renting,” Patterson said. “For someone to qualify for a $3,000-a-month rent, they have to have a household income of more than $100,000 per year.”

City committee will make a recommendation to commissioners

August 03, 2016 11:15AM

Renderings of the Related Group and Allen Morris Company's proposal, leftl, and of the Terranova Corp. and ZOM proposal, right

Renderings of the Related Group and Allen Morris Company’s proposal, left, and of the Terranova Corp. and ZOM proposal, right (via South Florida Business Journal)

The battle is on for the right to redevelop a 2-acre stretch of city-owned land in Coral Gables, with two teams led by the Related Group and Terranova Corp. in the running.

Coral Gables officials sent out a request for proposals mid-year 2015 to redevelop two of the city’s parking garages at 245 and 345 Andalusia Avenue, according to the South Florida Business Journal. Two bids are now up for selection.

For the first, Related has again teamed up with the Allen Morris Company, proposing a $250 million mixed-use project called the Coral Gables City Center designed by Zyscovich Architects.

Theirs is the larger of the two proposals, with a total buildout of 569,094 square feet, according to the Business Journal. Related and Allen Morris want to redevelop the main garage at 345 Andalusia Avenue into a 16-story tower with 140,000 square feet of offices, 11,871 square feet of retail on the ground floor, an outdoor cafe on the 12th floor and 770 parking spaces. Plus, the companies would build out a public park on the site.

The second garage would be transformed into a 17-story tower, this time with its primary use being residential. The building would have 270 units — Related and Morris haven’t decided on apartments or condos yet — along with 799 parking spots, 16,878 square feet of ground-floor retail space and a rooftop pool deck, the Business Journal reported.

In return for development rights, the city would receive the public park, 20,000 square feet of the project’s office space, plus shared revenue from the parking garages. The partners would also give Coral Gables $5 million if the city allows them to develop both garages at once, instead of in two phases, the Business Journal reported.

The second team competing includes Terranova Corp. and ZOM, whose $184.8 million proposal is dubbed the Shops and Residences at Miracle Mile. Arquitectonica and Khoury-Vogt Associates are the architects.

Terranova and Zom have proposed to expand the main garage at 345 Andalusia Avenue to 952 spaces with a 21,260-square-foot office component, while also building a pair of 16-story towers on the second garage and a piece of land Terranova already owns at 220 Miracle Mile, according to the South Florida Business Journal.

The tower on Terranova’s land would have 187 apartments and 17,695 square feet of retail space, while the second tower would house 148 apartments and 33,790 square feet of retail, plus 923 parking spaces. Tentative rents would range between $1,900 and $4,500 per month, with units sized from 500 square feet to 1,250 square feet.

ZOM would own and operate the apartments, while Terranova would do the same for the retail. The developers would also request financial aid from the city to help fund construction costs, according to the Business Journal. In exchange, Coral Gables would receive 18.3 percent of the development’s revenue, plus annual rent of $205,000 for 99 years.

A city committee will hold a public hearing Thursday. The committee will then submit their recommendation to the city commission. [South Florida Business Journal] —Sean Stewart-Muniz