Executive Feedback
As companies sell their Midwestern holdings, who will own and operate apartments in these cities?
A: “With respect to the AMLI Indianapolis [properties], my guess is that we will get a mix of local guys in the Indy market, some institutional capital with some institutional advisors, along with TIC [tenant-in-common] buyers from around the country looking for more yield than they can get on the coastal, high-price, low-cap-rate markets. I believe that, for the most part, local guys will be managing for the TIC buyers and the institutional buyers.” –Gregory T. Mutz, CEO, AMLI Residential
A: “As we sell assets in the Midwest markets, we see most assets being bought by smaller private owners, but some assets are being purchased by condo converters and large institutional owners as well.” –Alan George, chief investment officer, Equity Residential
A: “It is true that some REITs are positioning their portfolios to have greater exposure on the coasts than in the center of the country. The migration of equity capital makes sense, because the coastal states have a greater proportion of renters versus owners due to higher housing costs. There are many insurance companies, smaller REITs, private owners, and institutions that remain committed to Mid-western markets.” –Jon Segner, president and COO, Dominium Management Services
Project of the Month: Kentucky Courts
Washington, D.C.
It sounds like a near-impossible task: Transform a seedy, ramshackle public housing project into a dynamic, mixed-income redevelopment. But that’s exactly what Washington, D.C.-based architecture firm Sorg & Associates did with Kentucky Courts, a rental community on the edge of the Capitol Hill historic district in southeast Washington, D.C.
In its former life, Kentucky Courts was anything but modern and contemporary. The residence slowly drifted into a shadowy, dilapidated mess, as its surrounding neighborhood became synonymous with drug wars and violence. But Sorg & Associates and the D.C. Housing Authority saw the potential to revitalize the site’s entire block with a revamped and retooled Kentucky Courts. The strategy: Tear down the old Kentucky Courts building and start from scratch.
The big hurdle to overcome, though, was how to create a new three-story structure that packed a powerful aesthetic punch, while not straying entirely from the rest of the site’s environment. The previous building had its backs facing the street–there was no fluidity or openness. For Kentucky Courts’ reincarnation, the architecture firm created a series of aligning rowhouses, with each unit directly facing the street to encourage interaction.
Each rowhouse features brick veneer exteriors in various colors and shades, which in turn blends in well with the surrounding neighborhood. Two different styles of turrets–one circular, the other rectilinear–sit atop some of the units.
The $8 million development built by IDS Homes will comprise 18 stacked townhomes, 18 flats, and two three-story townhomes. Twelve of the homes will be leased or rented out to moderate-income residents, and the rest will be sold as condominiums. Each home will offer front and rear entrances and off-street parking. The project opened in 2005 and recently won the 2005 AIA Merit Award for Architectural Excellence.
–Abby Garcia Telleria