LEXINGTON, KY—Miller-Valentine Group has just bought 9.7 acres of historic horse farm country here for $2.75 million and plans to build WaterStone, a 264-unit class A luxury apartment community on the site. The multifamily development will sit next to Hamburg Place, an expansive two million square foot, mixed-use development comprised of retail, professional offices and residential development. 

This will be a somewhat unique development for Lexington, as it will have an urban-level density in a suburban location. The WaterStone site is at the northeast corner of Man O' War Blvd. and Polo Club Blvd. near Hamburg Farm, the horse farm founded by John E. Madden in 1898. The original 235-acre farm grew to include 2,000 acres over time and produced six derby winners. About half of the farm has been developed, but even the developed areas still have a lot of green space.

The seller was represented by Stidham Commercial Partners' Jeff Stidham and Justin Stevens, and Chicago-based KIG's managing partner Todd Stofflet. Stidham  Commercial Partners and KIG CRE LLC were involved in an 18-month process of predevelopment consulting, development planning and working with the City of Lexington to get favorable zoning for the new development.

"Lexington historically has been a very constricted rental market," Stofflet tells GlobeSt.com. "A restrictive Urban Service Area has kept new construction to a minimum and kept occupancies high and rent growth strong. With having a large student population as well as significant healthcare related industries, there is a high level of renter population. New construction, class A assets have a high level of appeal for these "by choice" renters. From an investment standpoint, Lexington is a very stable rental market that allows for strong long term returns."

"We are very excited to offer a unique luxury apartment community in the Lexington market that will be attractive to both the millennial and the empty nester population," says Dave Liette, president of Miller-Valentine Residential Development. "Jeff Stidham and Justin Stevens were extremely helpful in assisting with Miller-Valentine Group's access in the market and navigating through all the development approvals with the City of Lexington."

WaterStone will offer one, two and three-bedroom floor plans in two, four-story residential elevator serviced buildings with surface and attached garage parking. The development will also include a 5,500 square foot club house. WaterStone marks the first luxury apartment development for Miller Valentine Group in Lexington. The company has already developed two commercial office buildings and a senior independent living apartment community in Hamburg Place.