Challenge
A seasoned developer with substantial experience building single-family residential and commercial property developments, but without any ground-up apartment development experience, was interested in building a new Class A, mid-rise apartment building in downtown Santa Cruz. This market was previously untested for this product type. To ensure success, the developer hired Woodmont for their regional management expertise. Together, the team created a vibrant and profitable community that is still the benchmark for apartment communities in Santa Cruz.
Solution
Supported by market research that indicated unmet demand for upscale apartments in the Santa Cruz area, Woodmont developed a program to take advantage of that opportunity and meet the client’s business goals for the 113-unit property.
Throughout the planning and development process, Woodmont provided insightful input with an eye to maximizing rents and creating long-term value and advised the client on floor plan design, unit finishes, common area space planning and amenities designed to appeal to the prospective resident’s needs and wants. To create additional value, Woodmont recommended creating a Concierge Level on the fifth and sixth floors featuring upgraded interior specifications in all of the homes. And, an integrated branding and marketing program that emphasized the unique features of the community and its location added impact to the product and management input.
Results
Response to the final product was remarkable. Within months, all 113 apartments were leased and occupancy stabilized and the ground floor retail suites were in negotiation with desirable retailers. Because of early collaboration on design and management fundamentals and an ongoing management partnership, 1010 Pacific continues to lead the market with rents in the $4 per square foot range.