CA Ventures, Habitat Partner on $600M Multifamily Portfolio in the Midwest
CHICAGO — CA Ventures and The Habitat Co. have formed a partnership whereby Habitat will manage a $600 million multifamily portfolio owned by CA Ventures. The five-property, 1,215-unit portfolio features four assets under construction and one that opened early this year. Additionally, the Chicago-based firms plan to pursue co-development and investment opportunities in select markets throughout the United States, targeting properties between $40 million and $120 million.
“Since our inception, we have worked tirelessly to unearth opportunity in niche markets — both geographically and in various sectors of commercial real estate — where few other developers have thought to look,” says Tom Scott, CEO of CA Ventures. “Our strategic alliance with The Habitat Co. is one of many relationships we’ve established along the way and will supplement our development and investment expertise with best-in-class management services for which Habitat has been known for the past 45 years.”
Habitat will initially oversee operations at the following CA Residential communities, which are in various stages of development:
* The Buckler is an 11-story, 207-unit luxury rental community located west of the Milwaukee River in downtown Milwaukee. The development opened in early 2016 and is currently in lease-up.
* 8 E. Huron is a 26-story, 102-unit luxury apartment tower in Chicago’s Gold Coast and near the Magnificent Mile. Scheduled for delivery in mid-2017, the property will feature 2,756 square feet of boutique retail space.
* 212 Meramec is a 26-story, 250-unit rental building adjacent to the MetroLink Blue Line in Clayton, Mo., a suburb of St. Louis. The high-end community is scheduled to open in mid-2017.
* RISE at Prospect Park is a 15-story, 336-unit apartment tower located in a mixed-use development five blocks east of the University of Minnesota campus in Minneapolis. The grocery-anchored, transit-oriented project is slated to deliver in early 2018.
* 1136 S. Wabash is a 26-story, 320-unit rental tower in Chicago’s South Loop neighborhood that will feature 4,921 square feet of lower-level retail space. The property, located next to the Chicago Transit Authority’s Roosevelt Red Line station and across the street from Trader Joe’s, is scheduled to open in early 2018.
CA Ventures and Habitat have shared a mutual respect for each other for years and were waiting for the right project to bring them together, according to Scott. That opportunity arose with 1136 S. Wabash, which Habitat began consulting on last year.
“In working with Habitat, first on 1136 S. Wabash and then The Buckler, it was evident to everyone on our side why Habitat is a leader in multifamily development and management,” says Scott. “We immediately recognized the synergies between the two businesses and how we could work together to gain economy of scale and achieve our respective growth objectives more efficiently and profitably.”
Matt Fiascone, president of The Habitat Co., adds that he’s proud to partner with CA Ventures and “leverage our complementary skillsets to continue Habitat’s geographic expansion, capitalizing on the broader societal shift away from owning in favor of renting.”
Founded in 2004 with a focus on student housing, CA Ventures has diversified into other property sectors, including multifamily housing. The firm’s $6.3 billion portfolio also includes senior lifestyle, hospitality and office properties.
The Habitat Co., founded in 1971, is a residential real estate company specializing in property management, acquisitions and development. With over $3 billion in assets and more than 25,000 units under management across six states, Habitat’s portfolio spans a range of property types, from mid- and high-rise condominium, apartment and adaptive reuse developments to senior and affordable housing communities. Habitat has more than 800 employees throughout the United States.
— John Nelson