Virtuoso Living to Build Three-story Clubhouse

A west Huntsville development is stepping up its game in the housing industry.

JCF Living, developers of Virtuoso Living, will build a three-story clubhouse – the first of  its kind in the Southeast. This state of the art building will be in addition to its current clubhouse. 

The clubhouse will feature an entertainment area, rooftop lounge, beautiful city views, a resort-style pool, a luxury fitness center, and a coffee bar.

The unique community considers its apartment units as “Housements” – the patented concept features one-story buildings with private driveways, curbside mailboxes and front and back yards, among others. The community includes a resort style pool, community activity center, and on-site maintenance. There are some 400 Housements planned for Virtuoso.

The community is on Rockcrest Drive, just off Capshaw Road near Providence Main Street and Research Park Boulevard.

“We are excited to work with Huntsville on this elaborate project,” said John Fitzmaurice, CEO of JCF Living. “Coming  into this, I knew Housements would be a game changer for the rental  industry, but I never could have anticipated the demand for more Housements at such a rapid rate.

“We want to build a rental community unlike any other, and I believe this is the catapult to move us forward.”

The new clubhouse will include three floors of activities. It will feature an entertainment  area, rooftop lounge, beautiful city views, a resort-style pool, a luxury  fitness center, and a coffee bar close to the leasing office. 

“Huntsville is an innovative city, and we’re honored to bring such an  innovative concept here,” Fitzmaurice said. “If we are going to make a long-term impact on  the rental industry as a whole, we need to keep moving forward. This is  just the beginning for us.”

Huntsville Rent Increase Among Highest in the Country

Huntsville’s growth is putting a strain on the housing market with a limited number of properties in its inventory.

Now, a new analysis shows rental prices are rising above the national average during the global pandemic. In fact, Huntsville had the seventh-highest increase at 10.5 percent, according to the analysis by AdvisorSmith.

The numbers showed:

  • The rent increase in Huntsville is 11 times higher than the average increase nationally.

  • The weighted average rent in Huntsville jumped from $1,004 in 2019 to $1,068 in September 2020.

  • Huntsville had a higher percentage rent increase than Hoover (6 percent for No. 69) and Mobile (5.9 percent for 75th).

The pandemic has created major changes for Americans in personal and professional lives. One place where the pandemic has caused waves is in the residential rental market, with dramatic increases and decreases in rents in certain communities in the country.

For its analysis, AdvisorSmith examined the trends in rental prices in more than 500 U.S. cities to determine where rents are rising and falling the most.

Rent prices for studios, one-,two-, three-, and four-bedroom rental units in September 2020 were examined and compared to average rents in 2019. For each city, AdvisorSmith determined the weighted average increase or decrease in rents based upon each city’s composition of rental housing units. They then ranked the top 100 cities where rents are rising and falling the most.

The analysis showed rents increased an average of 0.9 percent during the study period. However, the range of rent changes was very wide, with the largest decrease being -34.7 percent, and the largest increase being 12.5 percent, as Americans made new choices about where to live based on shifts in the economy.

The cities where rents rose the most in the past nine months include cities on the outskirts of major metropolitan areas, as well as some midsize cities.

The top 10 cities are: Stockbridge, Ga., 12.5 percent; Avondale, Ariz., 11.6 percent; Spokane Valley, Wash., 11.3 percent; Chino, Calif., 10.8 percent; East Point, Ga., 10.7 percent; Coeur d’Alene, Idaho, 10.7 percent; HUNTSVILLE, 10.5 percent; Ridgeland, Miss., 10.4 percent; Goodyear, Ariz., 10 percent; Augusta, Ga., 9.6 percent.

Rents fell dramatically in some of the nation’s most expensive cities for renters. The top three spots were taken by cities in Texas and North Dakota with economies focused on oil and energy. With the price of oil plunging due to a reduction in driving during the coronavirus pandemic, demand for housing in these communities has fallen substantially.

Also highly represented in the top 25 were cities in the San Francisco Bay Area, New York City, the Boston metropolitan area, and a few suburbs of Washington, D.C. Many of these cities, which have some of the highest rents in the country, contain professional and technical workers, many of who have been working from home for much of the year.

Westward, Ho! Anthem Apartments and Cottages Join Growing Area of Huntsville

Coming soon to growing west Huntsville, a rental community that graciously merges country living with easy access to the best that Huntsville-Madison County has to offer.

Birmingham-based Capstone Building Corp., in partnership with developers EYC Cos. and The Kalikow Group, are developing Anthem Apartments and Cottages, a $67 million, multifamily community in Huntsville.

“It’s a pretty interesting concept,” said Michael Henrickson, vice president of Preconstruction and Estimating for Capstone. “It’s at the corner of Johns Road and Plummer Road. It’s in a great location with a lot of the new growth that’s going on in Huntsville.”

Once completed, the 40-acre property will consist of 406 units: 14 apartment buildings with 312 units, 94 single-family cottages with 48 stand-alone garages. The apartments and cottages are one-, two- and three-bedrooms. The new community will feature front porches that face onto community greens, along with park-like design elements interspersed throughout the property.

“The concept is a little different,” said Ellis Coleman for EYC Companies. “It’s a large site, There’s a lot of open area.

“We’re putting the cottages on one side of the property and the apartments on the other.”

The living space is roomy, too. Apartment sizes range from 757 square feet for the one-bedroom apartments up to 1,300 square feet for the three-bedroom units. The cottage sizes range from 694 square feet to 1,485 square feet.

The finished apartment units and the cottages will have 10-foot ceilings, LED lighting, energy-efficient gas appliances, quartz countertops, and high-quality vinyl flooring. Other amenities will include two saltwater pools, firepit terraces, a dog park, a playground, an herb garden, and more.

“We are building with the end user in mind,” said Coleman. “It will be very park-like when we finish, with lots of open space, sitting areas, and walking trails.”

The groundbreaking took place in July.

“We are a month ahead of schedule and are moving quickly,” said Coleman.

March 2022 is the targeted completion timeframe but some units will be available sooner.

“We have a 21-month schedule from July,” said Henrickson. “We have what we call a ‘phased turnover,’ so, in about 16 months, we’ll have the first apartment building ready to rent.

“We really pay attention to quality of life, so we want the new tenant to have a good experience. It’s going to be a lovely community when it’s done. The developer has really paid attention to ‘How do I make this feel like a home?’”

Publix to Anchor The Market at Hays Farm

One of the most prominent vacant retail developments in the Huntsville metro area is getting a $23.5 million investment, it was announced Friday.

Publix Super Market will serve as the grocery anchor for the Market at Hays Farm (formerly Haysland Square) development, according to developer Branch Properties.

“This is an exciting development for South Huntsville and a welcome announcement for all those residents who have eagerly hoped for a revival of the Haysland Square property,” said Mayor Tommy Battle. “This is also what happens when the city invests wisely in infrastructure that promotes planned growth and development such as the $60 million spent on the South Parkway ‘Restore Our Roads’ project, the new Grissom High School, and the new Haysland Road Extension and greenway.

“We applaud the Hays family for seeing the promise of South Huntsville and for their investment in its success.”

The Market at Hays Farm boasts more than 150,000 square feet of small shops and junior anchor space available in addition to multiple outparcels to serve the needs of the growing South Huntsville community. 

Branch Properties has developed and owned more than 45 Publix-anchored shopping centers around the Southeast and worked in collaboration with Tailwinds Development, which has built more than 15 Publix-anchored centers over the last 20 years.

“Publix has always been a pleasure to work with, and we value our relationship with them,” said James Genderau of Tailwinds. “John Hays and his family, who have owned the property for over 50 years, were truly the reason we made this deal happen. John is a gentleman and man of his word”

Branch Properties Executive Vice President said, “The city’s development staff of Shane Davis (director of Urban and Economic Development), Kathy Martin (city engineer) and Jim McGuffey (manager Planning Service), were rock solid and always had their doors open for us. This team was led by Mayor Tommy Battle who really had a vision for South Huntsville  … We appreciate what (he) has helped us accomplish here”

Since June 2018, South Huntsville has seen $75 million of private investment. The Hays Farm development will include single-family homes, apartments and townhouses to complement retail businesses and a nine-acre city park.

“The much-anticipated Market at Hays Farm is the first of many great things coming to Hays Farm and the South Parkway,” said South Huntsville Main Business Association Executive Director Bekah Schmidt. “We welcome the new Publix to the South Huntsville community and look forward to small businesses and additional anchors coming to the Market at Hays Farm.”

Demolition will begin immediately with the center scheduled to open in the fall of 2021.

Huntsville No. 2 for Career Opportunities in COVID-19 Recession

We’re not No. 1, but No. 2 is pretty good.

In a recent study, Huntsville ranked No. 2 among the best places for career opportunities in the COVID-19 recession . SmartAsset analyzed 200 of the largest metro areas across seven metrics related to employment, income and access to professional development through higher education or career counseling.

Huntsville placed in the top 10 of the study for two different categories: It had the sixth-lowest unemployment rate in May 2020, at 7.6 percent, and the eighth-highest income growth over a career, at 30.47 percent.

While the metro area finishes in the bottom half of the study for its low number of career counselors and post-secondary teachers per 1,000 workers, it ranks within the top 50 for its relatively small drop in total employment over the past year (-7.26 percent) and its relatively high 2019 median income (almost $42,000).

The top 10 according to SmartAsset are: College Station-Bryan, Texas; Huntsville; Gainesville, Fla.; Lincoln, Neb.; Champaign-Urbana, Ill.; Provo-Orem, Utah; Tallahassee, Fla.; Boulder, Colo; Tucson, Ariz.; and Phoenix-Mesa-Scottsdale, Ariz.

SmartAsset is a financial technology company that provides personal finance advice on the web. The company offers free and personalized tools for personal finance decisions around homebuying, retirement, taxes and more.

 

Madison County Housing Market Booms Despite Pre-COVID Shortages

Before the coronavirus pandemic, the only things obstructing regional residential growth was the construction industry labor shortage and a desperate shortage of housing inventory. 

Still, during the pandemic, there is nothing – at least nothing new – slowing the residential housing market in North Alabama. Not a virus, not consumers, not builders, not banks, not regulation, and not the economy.

Home-buying and homebuilding are booming.

“We have sold more homes in 2020 than were sold at the same time in 2019,” said Josh McFall, CEO of the Huntsville Area Association of Realtors. “Even amidst the stress of a pandemic and busy housing market there was no slow down, and in fact, the only thing the association has seen take a downturn is housing inventory.

“I don’t even think we can classify the inventory problem as directly related to the pandemic. Beginning in January, we reported the lowest number of homes available for sale in the MLS since the MLS has been keeping track of those records in the mid-1990s.

“Madison County has been the big driver of that because we have the most MLS listings due to the denser population. Inventory is low, but we consistently slide down the entire MLS because our average days on market has also slid down.”

He said the days on market number for North Alabama combined is 42 days but, in Madison County, that number is 26 days and consistently falling.

“I remember five years ago we were reporting 80 or 90 days on the market and here in 2020 and during a pandemic, as of June that number is 26 days,” he said. “So, we had this housing shortage before COVID.”

Last month, around 840 homes were sold in Madison County. Of those, 600 were resales and 230 were new construction. Those 230 are either new construction, a prospect build that was sold, or a custom build that entered the MLS.

“So, what we are saying is, more builders are feeling more confidence in the local economy, so they’re ramping up their building, while at the same time, they have a lot of pressure on them due to the labor shortage and rising supply costs,” McFall said. “But if you look at all the MLS to date, there were 2,307 available homes on the entire market; 926 are in Madison County.”

One-third of houses under construction sell every month so the industry must build a lot of houses to keep up with demand, 

“Sales prices are continuing to tick up from month to month so you can see it is a supply and demand issue,” said McFall.

How are people feeling about buying or building a home during a global pandemic? 

Apparently, completely unfettered.

“Buying a home during COVID-19 was almost no different than our previous purchases,” said David Fields. He and his wife Meredith bought a home right around the highpoint of the pandemic this spring. “Our Realtor was very supportive and took all the necessary precautions including the use of PPE and social distancing. Overall, it was a great experience.”

“We’re getting lots of activity on the housing side of our business,” said Joey Ceci, president of the Breland Companies. Breland’s commercial division is developing the 525-acre Town Madison off I-565.

“At Pike Place at Clift Farm off Balch Road in Madison we already have several townhouses built and sold,” Ceci said. “At Town Madison, they are getting calls from people who are downsizing and who want to get away from a large yard and out from underneath the maintenance of a large house.” 

While Breland builds a variety of housing products, they also contract with homebuilders such as Regent Homes of Nashville. Regent built homes at the Village of Providence and is building The Heights District at Town Madison.

Ceci said all Breland developments, whether they are cottages, single-family homes, or townhouses, are continuing to go up all over North Alabama. The Ledges of Oakdale in Athens, Meadowbrook in Cullman, and The Retreat in Meridianville are selling quickly, while Pebble Creek at River Landing in Madison is sold out.

“The impact on the economy with all these houses being built and sold are keeping home values up for existing homeowners,” Ceci said. “It’s good for our local economy too to be able to say we are not just swapping houses. We were pretty sure all these people would be moving here to take jobs with the FBI and Toyota, and now they are here. There are a lot of new people coming into the area.”

Stone Martin Builders who has developed Celia’s Garden, Allen Acres and Copper Creek in Huntsville, has continued to build throughout the pandemic, according to sales manager Ashley Durham, despite hurdles caused by supply shortages and subcontractor delays. 

“The labor shortage is the building industry’s greatest challenge currently and it has a direct impact on low inventory,” said Durham.  

One of the ways they are addressing the problem is to build strong relationships with subcontractors to help them grow their companies alongside their own.  

“As a growing company, Stone Martin Builders finds value in helping our business partners grow and become great so we can in turn, overcome all types of industry challenges together,” Durham said. “That in addition to seeking opportunities with local technical programs to enhance the workforce, we are all helping each other.” 

One of those technical programs is the North Alabama Homebuilding Academy started by the Huntsville-Madison County Builders Association to address the problem and they have already graduated their second class, even during the pandemic.

The North Alabama Homebuilding Academy trains people to be a homebuilder. Upon graduation, they can work as a contractor in training or in one of the ancillary trades. It was an 18-month endeavor but since January, the Academy has graduated 47 students.

According to Barry Oxley, Executive Officer of the HMCBA, the gap in skilled construction and construction-related labor goes back 30 years to the No Child Left Behind Act when school systems retooled education.

“There was for a long time, the idea that you have to go to college to be successful and as schools began to do away with trade school classes, a stigma developed around trades that said you were not meant for college,” said Oxley. “But the construction industry is made up of a lot of small businesses. If you are a skilled plumber, electrician, window or flooring installer or masonry expert, you do quite well.”

The Academy’s focus is on the 30 percent of school kids who are not able or do not want to go to college. 

The program is an eight-week session with a cap of 18 to 20 students. The fourth session started in early July with 19 students and every class through September is booked to capacity.

“We have been talking about the labor shortage for a long time, so we decided to do something about it,” said Oxley. “They apply through our website and we invite them to an open house. We have been doing those virtually since the shutdowns started.

“We send them an invitation to sign up for a class. It does not cost them anything to attend and we back up the classes with ongoing job fairs where we bring in employers who hire our students. These students are going from minimum wage jobs to making $14 to $16 an hour.”

“We will always strive to build homes efficiently and with great quality … and we will continually seek to find growth opportunities for our organization in the North Alabama market to help offset the housing shortage,” said Stone Martin’s Durham. “We are still accomplishing this goal and our customers remain positive.

“We keep them informed of any affects the pandemic will have on the construction process, and there has been very little disruptions in our builds, so customers continue to be eager and excited about their new home.”

Durham believes it is the commitment their company made to colleagues, customers, and the building team to support one another throughout the crisis. The minute COVID-19 began to challenge the building industry, Stone Martin Builders acted. 

“We identified fellow business owners that may be negatively impacted by the pandemic, and we found ways to become their patrons,” she said. “Many of these business owners were Stone Martin buyers, and we believe it is our duty to give back when we have the ability to do so.”

Some of the steps they took included renting tents from an event resource company whose events had been cancelled. 

“To offset their losses, we used these tents for outdoor closings and information gathering stations to offset the cancellation of open houses in North Alabama,” she said. “Our goal was to find ways to use the product of a struggling customer to help offset the struggles we were having.” 

Durham said some of their processes with customers also changed.

“Upon our first meeting with a customer, we seek to understand the ‘Why?’ they are building a new home,” she said. “COVID changed that process slightly in that we now need to understand how a homeowner is going to function in their new home. 

“COVID is requiring the home be multi-functional and that looks different for every homeowner.”

For instance, they see an increase in the need for home offices, quiet rooms for schooling or reading, functional kitchens with people cooking at home more, and good natural light for being home in day time hours.

“We are creating home plans that meet those needs,” said Durham. 

“We continue to see high demand for housing in Madison County, and especially in Madison,” said Madison Mayor Paul Finley. “The City instituted a Growth Impact Committee in 2017 that documented inventory and anticipated growth. Using this data, the Madison School Board, supported by the City Council, defined 12 mills as the proper number for managing this growth via the property tax referendum.”

The mill rate is the amount of tax payable per dollar of the assessed value of a property.

“This passed in September 2019 and we are now building the needed schools to manage the growth,” he said. 

To support this managed growth, the Madison City Council formulated and instituted a Growth Policy in mid-2019. Town Madison’s residential growth was factored into the Growth Impact Committee’s study and they continue to build out both the residential and retail portions. 

A new townhouse development on Kyser Boulevard is a perfect example of how managed growth can work for all parties. 

“The developer focused on providing 366 townhouse units on industrial property,” Finley said. “Our growth policy dictated that the only way we would change this zoning was if significant city objectives were achieved. 

“Working with the developer and schools, we defined two significant objectives: connecting Westchester Road to Kyser Boulevard allowing school buses a more direct and safer route to Sullivan Street; and extending the Bradford Creek Greenway from Palmer to historic downtown. These two objectives are estimated to cost $4,000,000 and will now be built and paid for by the developer. 

“The developer also agreed to spread the building out to eight years with a 50 unit maximum per year and will not include second stories or a swimming pool, keeping their focus on non-school age purchasers.”

“If you think back 10 years to the recession, Huntsville was not hit as hard as some places, but some of the bigger builders either scaled down or consolidated,” said McFall. “You may notice tracts of land still sitting empty in the back of neighborhoods that were built out for new homes in 2009 and 2010.

“Now they are exploding because builders have bought them. You can drive all over town and see construction in neighborhoods where one builder built the homes in one section of the development, but another builder is completing it. 

“The bottom line is people need a place to live, whether they are moving up or moving down. Marry that with the best interest rates seen in the mortgage industry in a long time, it explains the good housing numbers.”

Force Majeure: An Unexpected Legal Side Effect of Coronavirus

If you are a person who never reads the fine print of a contract, you have probably never heard of a force majeure clause.

However, that clause in every commercial contract for the past century may be worth reading for those suffering the economic hardships caused by coronavirus and the economic shutdown.

That relatively short paragraph in a commercial lease offers a glimpse into why all that fine print is important, and many business owners are discovering they can take shelter in its words.

Broadly written and mostly ignored until now, force majeure essentially says the contract you are signing is not enforceable in the event of a declaration of war or an act of nature.

In the past, what exactly constitutes an act of nature has been a bit unclear and some businesses are vowing to fight it in the courts, while many businessowners are justly using the force majeure to say, “Wait a minute. We are in the middle of a worldwide pandemic and I am being forced to close my business due to circumstances outside my control. I am activating my force majeure clause in response to my inability to pay the rent.”

As a result, commercial developers, property managers, and businesses who lease space to another business are getting their first look at post-coronavirus lease contracts.

What used to be a short, single paragraph is coming back a page or more in length, clarifying in detail, what exactly constitutes an act of nature. In addition to global pandemic, which is meticulously explained, these contracts are also allowing for events of civil unrest and riots.

As one landlord put it, the force majeure is now a lot more iron clad and landlords are going to have to go along with it.

While most businesses are willing to work with tenants on situations where they cannot pay the rent, and essentially defer the collection process until solutions can be found, it is now more than ever a choice about what the two parties will and won’t negotiate to reach a solution.

The force majeure is being expanded to try and clarify all circumstances that uphold that argument.

One example is that of a knee surgeon who isn’t allowed to perform knee surgeries because they are shut down for six weeks. Clearly there is no money coming in to pay the rent.

Some of these longer force majeures are written to say, if you close the hospital to elective surgeries, I will need to forego payments for six months or until the hospital reopens and I am able to offer services.

Force majeure is just one of the unexpected consequences of the coronavirus that will be with us for a long time.

Middleburg Communities Breaks Ground on 290-Unit Apartment Community in Cummings Research Park

Middleburg Communities has broken ground on Mosby Bridge Street, a 290-unit apartment development in Cummings Research Park. Construction on the community at 320 Voyager Way is expected to be completed April 2022 with leasing starting in May 2021.

“Mosby Bridge Street is another excellent example of utilizing our extensive research capabilities to identify prime locations surrounded by significant population and employment growth,” said Chris Finlay, Managing Partner of Middleburg Communities.  “By executing through our fully integrated team of development, construction, property management, and investment management, we are able to deliver better value to our residents and increased returns to our investment partners.”

Once completed, the property will be self-managed by Middleburg Communities, a Virginia-based real estate investment, development, construction and management firm.

“Middleburg is very excited to start this transformative development in what has become the fastest growing tech city in the U.S. and within Cummings Research Park, the second largest research park in the country,” said Middleburg Communities Vice President of Development Alexi Papapieris. “Mosby Bridge Street is our first investment in the Huntsville area and this property exceeded our most exacting standards, demonstrating strong job and population growth, a highly educated STEM workforce, new major employment hubs underway and immediate access to amenities, recreation and transportation corridors.”

Mosby Bridge Street will offer residents one-, two- and three-bedroom luxury apartments in four, four-story, elevator-served buildings with controlled access, conditioned corridors.

The development will feature Middleburg Communities’ Local Heroes program, which honors firefighters, police officers, emergency medical technicians and public school teachers by providing them with a rent discount for a select number of units.

Residents will be walking distance from the Bridge Street Town Centre and the community is enveloped by Cummings Research Park, home to a hub of science, technology, tech, space and defense companies, business incubators and higher education institutions.

The 3,800-acre CRP is home to nearly 300 companies in total and more than 30,000 employees and students. This is in addition to another 36,000 jobs at nearby Redstone Arsenal, which includes multiple Army commands, NASA’s Marshall Space Flight Center and the FBI’s new $1 billion campus focused on cybersecurity.

Huntsville Housing Sales Up Nearly 15% Over Year Ago

Though the number of house available for sale is the lowest in years, Huntsville residential sales for the first quarter of this year was nearly 15 percent higher than the first quarter of 2019.

The sales, according to the quarterly report from the Alabama Center for Real Estate, for the first quarter totaled 1,801 units, representing an increase of 14.9 percent when compared to 1,567 units sold in the first quarter of 2019.

“Compared to historical data, first quarter sales are 20.1 percent above the three-year quarterly average and 31.1 percent above the five-year quarterly average,” the report said.

The number of houses available for sale in the first quarter was 845 – a 32.5 percent decrease compared to the first quarter of 2019, when 1,252 houses were available.

And, not only did sales increase, so did the median and average prices – thanks to the low inventory.

The median selling price in Huntsville for the first quarter of 2020 was $233,688, a 12.2 percent increase from the first quarter of 2019’s median selling price of $208,333. The average sales price for the first quarter was $261,455, an 11 percent increase from the first quarter of 2019’s average sales price of $235,610.

“Compared to historical data, the fourth quarter median sales price is 21.1 percent above the three-year quarterly average and 28.3 percent above the five-year quarterly average,” the report said. “The fourth quarter average sales price is 20 percent above the three-year quarterly average and 26.4 percent above the five-year quarterly average.”

The houses that were available, weren’t on the market long, either. The average number of days on the market in the first quarter of 2020 was 40, representing an improvement of 15 days from one year ago.

Construction of Luxury Housing Continues as B’ham Developer Breaks Ground Near MidCity

As the worst of the COVID-19 crisis seems to be waning in North Alabama, new jobs, new construction, and plans for a new luxury living development pick up right where they left off in March.

Birmingham developers Capstone Communities broke ground on The Cottages at Old Monrovia, a 25-acre housing development near Old Monrovia Road and Oakwood Road, about a mile from Huntsville’s MidCity district. The rentals will feature a mixture of single-story attached homes, lofts and two-story townhomes.

“Our goal is to build a unique community and true sense of place at The Cottages,” said John Acken, executive vice president of development for Capstone Communities. “With plenty of sidewalks, pedestrian features and open green spaces, we want to create a safe and walkable community where residents can look forward to spending time outside enjoying cookouts, hosting community events and connecting with their neighbors.”

Capstone Communities estimates the project will bring 100 to 120 temporary and permanent jobs to the area in construction in management.

Convenient to Cummings Research Park and Redstone Arsenal, the low-density multifamily development consists of 275 cottage-style homes, expected to attract young professionals and their families, and empty-nesters looking to downsize.

Capstone Properties, the in-house management company for Capstone Communities, will begin leasing this fall. The first units are expected to be completed in March 2021 with the full completion slated for September 2021.

Architect’s rendition of the loft-style home at The Cottages.

Designed by Nequette Architecture & Design, also headquartered in Birmingham, The Cottages at Old Monrovia will offer a variety of upscale amenities such as nine to 12-foot ceilings, granite countertops, wood-grain flooring, in-unit washers and dryers, a smart home technology package, state-of-the-art fitness center, resort-style pool, centralized clubhouse, dog park, electric car charging stations, a car care center, a pet spa, 24/7 on-call maintenance and optional enclosed garage parking.

Capstone Communities (formerly Capstone Collegiate Communities) is a Birmingham-based commercial real estate firm specializing in the development, management and construction of student, multifamily and senior housing. They entered into a partnership with OG Capital, a private equity real estate investment firm specializing in the acquisition and re-positioning of existing multi-family properties throughout the South, to bring the development to Huntsville.

According to OG Capital principal David Oakley, the single-family style rentals have proven successful in other markets with a 50 percent faster lease-up period, and a 20 percent higher resident retention rate than traditional garden-style apartments.

“I first noticed this cottage concept out West a few years ago and grew to love it,” said Oakley. “Apartment living doesn’t have to mean stairs and elevators. The cottage style product meets the market by providing residents with the features they value most – private backyards, high ceilings and in-home tech packages – to name a few.”

It is Huntsville’s surge in innovation and economic growth that makes Huntsville the perfect location, said Shep Nolen, president of CBI Construction Services, Capstone Communities’ in-house general contractor for the project.

“We’re thrilled to enter such a promising market and support the city’s economic development efforts by creating additional jobs as Huntsville prepares for its next chapter of growth.”

Construction financing is being provided by Trustmark National Bank and Renasant Bank.