Monday, November 26 2012

512 Rose Sells for $56 Million Nine Months After Opening

IMG_9178A10Three factors accounted for the $56 million price paid by Archstone last week (Oct. 15) for The Frank, a 70-unitmixed-use multifamily project in coastal Venice, CA—thoughtful design, a market with a constrained housing supply and a high level of sustainability.

“Venice is a very eclectic market with a limited housing supply for young, upscale professionals,” said Brent Gaulke of Portland, OR-based Gerding Edlen, the developer.

“Despite high monthly rents, which ranged from $3,000 to over $5,000, the apartment community was 98% leased at the time of the sale,” added Gaulke, noting that the project, which opened early this year, is a fine example of thoughtful design.

The Frank was conceived to engage the distinctive articulated context of Venice, according to project principal Barbara Flammang. One and two bedroom units, ranging from 800SF to 1400SF open up to large, lushly landscaped courtyards. Five two-story townhouses face a wide sidewalk and lively Rose Avenue, and are located above ground floor retail that includes 2 restaurants, a yoga studio and a hair salon.

Two large, generously landscaped courtyards and onsite retail shops, including a yoga studio and two restaurants– Café Gratitude (which mainly serves organic foods) and Piccolo–resonated with the renters as soon as they saw the community, Flammang said.

Interior highlights include large operable windows and balcony doors to welcome fresh sea breezes, steel trellises and glass balcony railings.

Built on a landmark 1.4-acre site formerly occupied by the historic Pioneer Bakery– highly revered by the local populace– the entitlement process was extremely demanding, related architect Flammang. “We had at least 30 community meetings prior to city approval.”

These local inputs and the developer’s astute marketing plan played a major role in the resulting design, she said.

Emphasizing the developer’s commitment to sustainability, the project includes a solar hot water system and a LEED Platinum rating.Its energy consumption metric is estimated at 34% less than a typical building, the developer said.

Building materials included hardboard siding, exterior plaster, red brick veneer, steel trellises and glass balcony railings.