APARTMENT AMENITIES REACH NEW HEIGHTS
Developers offer range of conveniences, services to bring in renters
“Going back a few years ago, maybe as recently as three to five years ago, rental customers weren’t quite as fussy as they are today. They looked at rentals more as short-term propositions. Today, tenants are looking at apartments more as long-term accommodations.” Barbara Hickey, Realtor with William Pitt Sotheby’s International Realty
Connecticut’s rental market continues to bustle with eager renters, and landlords and developers in southwestern Connecticut are counting on an ever-growing slate of amenities to get people in the door.
Statewide, Connecticut is experiencing what the real estate brokerage and analysis firm Marcus & Millichap calls “a wave of new rental demand” that is fueling not just new complexes but investments in older ones. Demand continued on an upward swing in the recently concluded third quarter, Marcus & Millichap determined, with Stamford and Norwalk particularly hot destinations and New Haven seeing vacancies drop to their lowest levels in seven years.
With a growing demand for rental units in the region, market observers suggest that developers and property owners have to think hard about what their buildings offer residents.
“Going back a few years ago, maybe as recently as three to five years ago, rental customers weren’t quite as fussy as they are today,” said Stamford-based Realtor Barbara Hickey with William Pitt Sotheby’s International Realty. “They looked at rentals more as short-term propositions. Today, tenants are looking at apartments more as long-term accommodations.”
Units run from your phone
The days of offering a fitness center and in-unit laundry to prospective renters have become commonplace in the region, prompting developers and building owners to go a step further to attract tenants.
“For us it has been and will be technology,” said developer Gary Flocco of New York-based Corvus Capital, which recently began renting units in the Cherry Street Lofts in Bridgeport.
The West End apartment complex has already rented out 93 units
due at some level to the smartapartment features, Flocco said. From lights and air conditioning to music and kitchen appliances, he said residents can program and control utilities using their smartphone.
“That’s really a big factor, especially with the millennials,” he said, adding that roughly 70 percent of the units leased from that age group.
Along with tech integration, the apartment complex, comprised of a revamped block of old factory buildings, has its own power plant, a 460-kilowatt fuel cell that allows the complex to sell electricity to residents at a discount.
The complex also offers its own private space and courtyard. “These are the kind of things that we are really seeing that are over and above the health clubs and the basketball courts,” Flocco said. “It’s really lifestyle changes.”
Lifestyle options
Real estate developer Greystar did not skimp on amenities when it built 1 Kennedy Flats, a 374-unit apartment complex in downtown Danbury, in 2016. The development, seen as a catalyst for the revitalization of Danbury’s urban core, includes a pool, fitness center, on-site management, and outdoor stations with grills and firepits.
Residents also gather at The Lounge, which features a sports bar, fireplace, billiards and shuffleboard. To make Kennedy Flats stand out further, Greystar added an on-site dog wash station and bike repair shop.
“These days people are looking for high-end finishes and heavily amenitized communities,” said Justin Gaboury, then senior property manager when the complex was being built. “And what we offer is a full-resort amenity package.”
Building an amenity-rich asset has paid dividends for the developer. Not only did the units fill up quickly, but Greystar sold the complex last year for more than $86 million.
At Grist Mill Village in Norwalk, at more than 700 units the largest in the region currently underway, developer Building & Land Technology is including pools for each of the three buildings in the complex, as well as fitness centers, yoga studios and open spaces. The 32-acre site will include walking trails, as well.
For the new JLofts Greenwich Apartments that opened two years ago just off West Putnam Avenue in Greenwich, amenities include a rooftop putting green; both a clubhouse with bar and a private dining room for residents to host parties; and a self-service “spa” space to groom their dogs.
The price of convenience
While providing features that pique interest remains a top priority, market observers suggest that convenience is another key component.
“There’s now a very large percentage of tenants willing to pay a premium for convenience,” said Hickey. “They want concierge types of services. Building shuttles to the train are certainly very desirable, in addition to other amenities such as gyms in the buildings. And tenants are willing to give up some unit square footage for an optimal location and top-quality amenities.”
New apartment buildings in Stamford may top them all, with features such as electric-vehicle charging stations. Residents at the downtown Atlantic Station, which opened at the beginning of the year at 355 Atlantic St., have access to a “Hello Alfred” platform, which provides an app for users to order services such as apartment cleanings, laundry and grocery shopping. Jordan.grice@hearstmediact.com