Berkadia announces it has sourced an equity partner for Capstone Communities to develop The Cottages at Greystone, its first build-for-rent (BFR) community in the Greater Birmingham area. A low-density multifamily development, The Cottages will sit on approximately 30 acres within the well-established Greystone community, just minutes off Highway 280.
Cody Kirkpatrick, Noam Franklin and Chinmay Bhatt of Berkadia JV Equity & Structured Capital sourced the equity partner, a fund manager based in Texas. Berkadia has recently helped Capstone secure equity partners for similar cottage-style developments throughout the Sunbelt, including communities in Port St. Lucie, Florida; Myrtle Beach, South Carolina; and Warner Robins, Georgia.
“We are excited to once again work with the exceptional team at Capstone to help them source a like-minded equity partner for their cottage-style, build-for-rent product located in their home market of Birmingham,” said Kirkpatrick. “Because of the cultural similarities and alignment of economic interest between Capstone and their partner, The Cottages at Greystone is the first of many BFR developments the programmatic partnership plans to develop throughout the Southeast over the next few years.”
“Birmingham is not only our hometown but the centerpiece of a thriving region and state that embraces the spirit of innovation, progress and growth,” said Jim Beatty, vice president – development for Capstone Communities. “We are proud to bring our build-for-rent cottage concept, which has proved tremendously successful in other markets, closer to home and provide a premium housing option for Birmingham residents looking to rent instead of buy.”
For more than two decades, Capstone built its reputation as a national leader in the student housing industry. In 2017, Capstone expanded its portfolio beyond student housing into the multifamily sector at the forefront of the rapidly growing build-for-rent (BFR) movement. With the introduction of its cottage-style development program, Capstone has quickly become a BFR leader with seven communities currently under development across the Southeast.
Construction on The Cottages will commence May 2022, with its first units scheduled to be delivered by summer 2023 and full completion in winter 2023. Incorporating a “new urbanism” style, the 189-unit development includes sidewalks, pocket parks and open green spaces that create a true sense of place for its residents.
The Cottages is located in-between Saint Vincent’s One Nineteen Hospital and Church of the Highlands, while having convenient retail destinations, accessible recreational activities and several business parks along the Highway 280 corridor, giving residents easy access to what they need – whether it’s commuting to work, grocery shopping, gathering with friends or exercising.
Designed by Birmingham-based Nequette Architecture & Design, The Cottages will offer a mix of lofts, one and two-story cottages, as well as two-story townhomes including private outdoor yards.
Each unit will include nine-to-12-foot ceilings, wood-grain flooring, in-unit washers and dryers, 24/7 on-call maintenance and optional enclosed garage parking. Neighborhood amenities include lush courtyards with pavilions, a central clubhouse with a resort-style pool, fitness and business centers, pet washing stations and valet trash.