Two deals last week show that, despite sluggish apartment sales, the land market is still liquid.
On Dec. 9, Landmark Properties announced that it closed on the acquisition of a 3.29-acre site in Auburn, Alabama, in partnership with Manulife Investment Management, according to a news release.
The Athens, Georgia-based developer plans to build The Mark Auburn, an 825-bed student housing property, the fifth project in a build-to-core joint venture executed with the Manulife Infrastructure Fund pool. Peninsula Investments also partnered on the project, adding to its investments across Landmark’s portfolio of student housing communities.
The mid-rise building will feature 329 units, ranging from studios to five-bedroom apartments. Landmark Construction will serve as the project’s general contractor, while BKV Group is the project’s architect. The project is expected to open by the fall 2028 academic year.
“Our team was advantageous in negotiating a four-parcel site that falls across two zoning areas, which will allow us to achieve meaningful density at The Mark Auburn and stand out among similar properties in the area,” Jason Doornbos, chief development officer at Landmark Properties, said in the release.
Middleburg acquisition
Also on Dec. 9, Middleburg Communities announced the closing of land and construction financing for Mosby Deerbrook, a 330-unit luxury apartment community in Spring Hill, Florida.
The property will feature 113 one-bedroom, 182 two-bedroom and 35 three-bedroom apartment homes across garden-style buildings. US Bank provided the construction loan for the project, which is expected to commence imminently, with the first units delivering in early 2027.
“The location worked well because this is up against a natural wetland area,” said Reece Kimsey, partner and head of site acquisitions at Middleburg in an interview. “We’ve got some wetland views, and then we're right at the back door of a cancer research park from Moffitt. We also have great access from there into the Suncoast Parkway and the Suncoast trail system.”
The parcel is part of larger tracts earmarked for commercial development. Middleburg evaluated other sites that might have been marginally cheaper, but it preferred the proximity to jobs.
“This one was worth it to us to say this is the best location in this submarket,” Kimsey said. “So that's why we struck on this one.”
The seller was also operating on a realistic timeline. “They also had the base zoning in place where we needed, so it was just a simple site plan approval process with our prototype design,” Kimsey said. “From contract to closing, it was only about a 14-month process.”
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