Capstone Communities is expanding its multifamily portfolio with two low-density cottage communities in Daytona Beach, Florida and Summerville, South Carolina.
Last spring, Capstone launched its first multifamily venture, The Cottages at Old Monrovia in Huntsville. Both of the upcoming projects will follow a similar development approach with a “new urbanism” style featuring cottage homes with sidewalks and pedestrian-friendly amenities.
“We’ve seen the cottage-style concept prove highly successful in numerous student housing communities we have developed and managed across the country,” said John Acken, executive vice president of development for Capstone Communities. “As we’ve begun introducing this build-for-rent concept to the multifamily sector, it presents an attractive housing option for individuals in a life transitional phase — whether moving to a new city, preparing to eventually buy a home or downsizing.”
The build-for-rent communities are a growing trend nationwide, with these concepts generating approximately 20-30% rental rate premiums compared to traditional multifamily apartments because of their design and amenity offerings, according to multiple market experts including John Burns Real Estate Consultants.
“The pandemic has caused a mindset shift among renter’s preferences today,” Acken said. “Many people are now finding more value in the space and affordability you can have in low-density suburban areas.”
CBI Construction Services, Capstone’s in-house construction firm, broke ground on The Cottages at Daytona Beach last December. The 30-acre site is located in West Daytona Beach, which has experienced an influx of retail, residential and employment growth in the last few years. The first units will be delivered this fall with the full project completed in spring 2022.
In South Carolina, Capstone will begin the 282-unit project at Nexton, a 5,000-acre master planned community located outside of Charleston in Summerville. The first homes are scheduled to be delivered in fall 2021 with full completion expected in summer 2022.
“Nexton’s partnership with Capstone comes as a growing number of individuals and families are looking for new residential choices that fit their lifestyle,” said Brent Gibaldo, Nexton’s vice president of operations. “Capstone’s development offers single-family rental homes in a suburban environment with amenities and services typically found in more urban settings, all of which are highly desirable right now.”
Capstone Communities, formerly Capstone Collegiate Communities, is a Birmingham-based commercial real estate firm specializing in development, management and construction of student, multifamily and senior housing.