Executive Feedback
What ancillary services give your company the biggest bang for the buck?
A: “The ancillary services that give us best bang for the buck are charging for parking, creating storage spaces, charging pet rent and nonrefundable pet deposits, renting roof space for cell towers, sharing revenue with cable, Internet, and phone services, converting carports to ‘garports’ (enclosed carports), and building standalone garages.” –J. Scott Morrison, senior vice president, Legacy Partners Residential
A: “Our best bang for the buck ancillary [income-generating] service has been pet rent. We’ve developed a very comprehensive program that allows for many breeds of dogs (with proper documentation) and other house pets. This has not only generated significant revenue, but it has also improved our resident retention rate.” –Dan Lieberman, president, Horizon Management Group
A: “Delivery of zero-cost ancillary services provides the most bang for property owners. Utility reimbursement generates the absolute greatest revenue. Revenue shares for cable, Internet, telephony, satellite, wireless Internet, and credit card fee participation are also excellent sources. We also capitalize on in-place assets (e.g., value pricing, permitted parking, storage, corporate units, and pet rent).” –Dennis Treadaway, president, FPI Management
Project of the Month: Legacy Fountain Plaza
San Jose, Calif. Most urban infill sites present a challenge to be reckoned with. But with extensive planning and research–and a little patience–tackling urban infill properties isn’t as harrowing as one might think. Just ask real estate developer Legacy Partners and architectural firm Newman Garrison Gilmour + Partners (formerly Meeks + Partners).
The team joined forces to provide a distinctive mix of urban living opportunities in San Jose, Calif., and relate it to the surrounding city elements. The result was Legacy Fountain Plaza, a Mediterranean-themed luxury mixed-use residential complex containing apartments, for-sale townhomes, and live/work lofts.
But there were some knots to untie in the process. An old railroad yard and a blighted city park stood in the project’s way. But building a new project alone created opportunities to revamp the isolated park. “The development … created strong street scenes with architectural statements and landscape and usable open space for its new residents,” says Dave Gilmour, president of planning for Newman Garrison Gilmour + Partners.
The 367 luxury apartments and 65 townhomes are situated throughout the 10-acre site to maximize density on the long, narrow property. The project spruced up the street scene with the townhomes facing the park, while the parking structures were placed as buffers to the rail line. The complex features large windows, plus entry stoops and courtyards to encourage a pedestrian-friendly lifestyle. Indoor amenities include 9- to 17-foot ceilings and oversized walk-in closets. The courtyards feature a fountain focal point–one of the property’s big eye-catchers.
One-, two-, and three-bedroom units range from 582 to 1,430 square feet. Monthly rents range from about $1,200 to $2,400. Legacy Partners is the builder and manager of the development, which opened in August 2004. Its occupancy rate is 93 percent.
–Abby Garcia Telleria