By Jon Peterson
Hartford, Conn.-based Barings Real Estate Advisers has paid $6 million to acquire the land for the 195-unit The Triangle apartment development project in Redmond, according to a board meeting document from the Ohio Bureau of Workers Compensation Board.
The development is now under construction and should be completed by the third quarter of 2018 with the leasing on the property to start in the second quarter of the same year. The property is located at 16450 Redmond Way.
Barings and Foster City, Calif. -based Legacy Partners are both involved in the development and ownership of the project. Barings has a majority stake in the property. Both companies declined to state the development cost.
This project will be developed in a build-to-core strategy. Barings made the land acquisition on this project for its commingled fund, Barings Core Property Fund. This commingled fund had been known as the Cornerstone Patriot Fund, until last year when the name of Cornerstone Real Estate Advisers was changed to Baring Real Estate Advisers. It has a net asset value of $3.1 billion, as of September 2016. The fund has no current entry or exist queue.
The Core Property Fund is a core open-ended commingled fund. The commingled fund does allow for 10 percent of the portfolio to be made up of traditional value-add investments, which includes development opportunities.
The Triangle will be the first investment that Barings has for apartments in Redmond. “We do have experience with projects in other markets near Seattle like Bellevue and Kirkland. Redmond is a market that we feel strongly about with the planned improvements for downtown and the job growth led by the likes of Microsoft and Nintendo,” says John Kennedy, managing director for Barings. He works out of the company’s regional office in El Segundo.
Legacy sees that Redmond is a strong market for new apartment development. “There has been a great deal of growth in Redmond recently, which includes the City investment in the new Downtown Redmond Park and the Redmond Way/Cleveland Street Couplet Conversion. All of these factors have combined to create a real downtown in Redmond with shops and restaurants and a vibrancy that will only attract more mixed-use development to the downtown Redmond core,” says Steffenie Evans, a vice president with Legacy.
Legacy envisions multiple types of renters for The Triangle. “We anticipate a heavy Microsoft presence within our renter pool, as well as other tech employees. We have been thoughtful about appealing to a potential international renter as well. Additionally, while Millennials are always on our mind, the typical renter in Redmond is slightly older, so our finished appeal to that type of renter. For example, we have paid close attention to creating kitchens with substantial storage and higher-end appliances,” said Evans.
Legacy isn’t sure at this time if The Triangle will be a project that will provide any move-in incentives at this point in time. “It’s a bit too early to determine whether or not we will need to offer free rent during lease-up. Typically, we will look at the market, our competitive set and evaluate on a weekly basis whether or not we need concessions to hit our occupancy targets,” said Evans.