2017 Will Be A Big Year For Anton DevCo
Anton DevCo will be quite busy next year, with over 1,600 units in the pipeline and over 800 units under construction.
The multifamily developer completed its 148-unit Anton Arcade in Sacramento last month and expects to complete two more developments in California next year. Three projects in the Bay Area will break ground next year as well.
We spoke with Anton DevCo SVP, development and acquisitions Andrew Baker about the developer’s latest projects and what he expects in the Bay Area market next year.
Baker said he’s cautiously optimistic in the short term. The easy deals are gone and double-digit rent growth long gone. He expects cap rates to potentially follow rising interest rates.
“The market has plateaued short term and the next deals we do will have appropriately adjusted risk returns,” Baker said. “Increasing hard costs, labor shortages, increased supply, flattening rents, increasingly difficult entitlement processes will continue to be short-term headwinds in 2017 and 2018.”
Baker said he’s monitoring three long-term macro trends he thinks will keep multifamily thriving. He says the supply/demand housing imbalance in California is out of equilibrium because of job and population growth and says more housing will be needed.
He said there will be increasingly more 21- to 34-year-olds every year between now and 2024. The rent vs. own trend continues to favor rentals based on lifestyle preferences, urban living and the high cost of ownership.
“The need in California for smart growth housing remains desperate,” Baker said. “Delivering both luxury as well as working-class housing is so important.”
With Anton DevCo in both Northern and Southern California, Baker has noticed some differences in the two markets. Southern California hasn’t heated up as sharply as Northern California and the recovery is about 12 months to 18 months behind.
He said the biggest difference is the fierce competition for construction and costs of construction are not as acute of an issue in Southern California.
Throughout California, Anton DevCo has focused on affordable and market-rate housing, is skilled at Low-Income Housing Tax Credit 80/20 mixed-income transactions and focuses on building in supply constrained locations near jobs and transit, according to Baker.
Anton DevCo has had success in places like Milpitas and Redwood City because their development fell under a precise plan, Baker said. This makes for an easier process because CEQA and environmental impact reports have already been contemplated and the cities clearly explain what they want in that district.
Check out Anton DevCo’s latest developments below.
This 394-unit complex is wrapping up construction in Menlo Park and expected to open next spring. The final project of the old St. Anton Partners platform, the development is two miles from Facebook and offers studio to three-bedroom apartments along with an on-site sports lounge, a café, a pet spa, a two-story gym and a chef demonstration kitchen. Outdoor amenities include a pool, a spa, a bocce ball court and a rooftop terrace.
Sacramento’s latest development just opened with 148 units of affordable housing. The community offers studios, one-, two- and three-bedroom apartments and residents have access to a clubhouse with a lounge, a fitness center, a computer area and a play area; a pool, a barbecue area and an outdoor pavilion. On-site services include after-school programs and educational classes from Pacific Housing.
Following the opening of this project, Anton DevCo and the Sacramento Housing and Redevelopment Agency received recognition by the National Association of Housing and Redevelopment Officials for continued commitment to affordable housing.
This mission-style complex in Irvine will offer 256 affordable units and open next spring. The community is on Irvine Ranch, a leading master planned community in Orange County, and includes park areas, a tot lot, a clubhouse, a pool, a spa, a barbecue area and a WiFi lounge. One- and two-bedroom apartments with an option for a private garage will be available.
Anton Milpitas 750
This transit-oriented 316-unit development in Milpitas will break ground next month and is expected to complete during the first half of 2019. The market-rate complex will offer open floor plans, high-end cooking and studio to two-bedroom apartments. Amenities include a fitness center with an outdoor yoga lounge and rooftop terraces.
Anton Mountain View
The Mountain View development will offer 144 units in Mountain View and is expected to break ground in May. Residents of the studio, one- and two-bedroom apartments will have access to an outdoor game lounge, a fireside spa and a lounge pool as well as a fitness center, a clubroom and a rooftop lounge. Underground parking will include bicycle storage and electric vehicle charging stations. Mountain View City Council approved this project earlier this year.
This 250-unit complex is an LIHTC deal with 80% market rate and 20% affordable housing. It’s expected to break ground next fall. This transit-oriented development is part of the Redwood City Downtown Precise Plan and is near Redwood City Caltrain and several major employers. Amenities include a pool, outdoor gaming and lounge areas, a fitness center, an outdoor fitness space and two rooftop terraces. Studios, one- and two-bedroom units will be available.