DALLAS-After finding success with an apartment project in Baton Rouge, LA, Prime Income Asset Management is moving forward with another development nearby, The Parc at Denham Springs.
Construction is underway on the 224-unit, class A project, which is situated on 12 acres at 31092 LA Highway 16. The multifamily project has a development price tag of $19.7 million, according to Al Crozier, executive vice president of residential construction. It was financed with a HUD 221(d)(4) loan.
Crozier tells GlobeSt. The Parc at Denham Springs is Prime Income Asset Management’s second property in the Baton Rouge market. The Dallas-based developer and investor opened the 166-unit Sugar Mill last year.
“Sugar Mill leased up very well, and when we did our market analysis for this development, we noticed that the Baton Rouge area had an influx of people that we attributed to [Hurricane] Katrina,” Crozier says, adding that the marketwide apartment occupancy is about 94%. “People moved to Baton Rouge and never went back to New Orleans. We perceive demand for new apartments.”
Located just minutes from downtown Baton Rouge, The Parc at Denham Springs offers a mix of one, two and three-bedroom units ranging from 890 square feet to 1,224 square feet. Units feature full-size washer and dryers and amenities include a clubhouse with a business center and fitness center and a resort style pool.
The developer expects to achieve an average rental rate of 92 cents per square foot. The community is scheduled to be completed in spring 2011.
Depending on how well the initial 224 units lease up, Prime Income Asset Management has enough land to development 96 additional apartments at The Parc at Denham Springs.
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