Amenities That Keep Costs in Check

ourselves to ‘what is’ currently in the marketplace.”

SAN DIEGO—Great design fosters opportunities for social engagement and is a significant and meaningful amenity that doesn’t have to cost more, construction-wise, when done right, the Richman Group of California Development Co. LLC ‘s president Luke Daniels tells GlobeSt.com. The two-year-old firm recently began construction on F11 , a seven-story mixed-use Downtown San Diego project with 99 apartments and 5,644 square feet of commercial space, located on the north side of F St. between 11 ^th Ave. and Park Blvd.; received the certificate of occupancy on Ventana , a 95-unit affordable seniors apartment complex with ground-floor commercial in Fullerton, CA—the six-story, 130,000-square-foot midrise building on .6 acres will also feature 3,200 square feet of retail space and a subterranean parking garage for customers; just finished the foundation on Sage , a 132-unit, five-story apartment community in Cerritos, CA, adjacent to the Cerritos Towne Center ; and late this year will start construction on 330 13 St. , a 22-story luxury apartment tower immediately across the street for the Downtown San Diego Main Library . We spoke exclusively with Daniels about the company’s projects, keeping costs in check for expected amenities and the differences between developing mixed-use and straight apartment projects. GlobeSt.com: What commonalities are there among the various projects you have going now—F11, Ventana, Sage and the residential/mixed-use tower across from Downtown San Diego Central Library? Daniels: Our projects are extremely diverse in construction typology, location and market segment.  Whether it be a sophisticated, design-driven high-rise in Downtown San Diego or an affordable seniors-housing development in Downtown Fullerton, we are dedicated to creating communities that elevate our residents’ lifestyles. For each project, we carefully take the site’s constraints and urban plan into consideration and work to leverage those challenges into opportunities. As an example, an earthquake fault runs through the property where we’re building the 22-story tower. We leveraged that constraint by adding signature amenities like a park-like open space corridor, a restaurant with extensive outdoor seating and very cool low-rise apartments designed by Rob Quigley , the celebrated architect of the Central Library . That particular constraint led us to create spaces that will give the project a true urban-infill personality, playfully enliven the space and enhance the surrounding community. GlobeSt.com: How can apartment developers provide the amenities tenants are seeking while keeping costs in check? Daniels: At this point in the real estate cycle, with multifamily-housing construction costs at or near an all-time high, we see that as a major challenge. Most of the residential apartment projects we’re building are strategically in the 100- to 150-unit range, rather than the huge mega-uber-amenitized projects. We’re focused on creating properties with a more boutique hotel vibe that embrace individuality. We are reimagining rental living with properties that provide opportunities for social engagement. Great design fosters this and is a significant and meaningful amenity, and it doesn’t have to cost more, construction-wise, when done right. We push ourselves and our architectural team to aim for what “can be” rather than compare ourselves to “what is” currently in the marketplace. We constantly focus on trying our best to lead and not to follow. That said, quantitatively, we are hyper-focused on building efficiency at every level. While we do offer preferred amenities—always focusing on what our residents want and use—we concentrate on projects in dynamic locations where there are different and nearby amenities, such as restaurants, nightlife, recreation, and transportation and employment opportunities in the surrounding neighborhood. We’ve found that a great Walk Score is one of the greatest amenities we can provide. GlobeSt.com:  How do you approach a mixed-use project as opposed to a straight apartment project? Daniels: We approach every project with the goal of enhancing the neighborhood it will be adding to with reimagined rental living offerings and smart design. However, mixed-use projects are much more difficult to execute successfully than straight apartment communities because they require much more market research, extensive financial analysis of different asset classes and considerably more coordination throughout the development and construction process. We are currently doing due diligence on a project that involves retail, public parking, creative-office space and market-rate apartments. Despite the challenges, creating a successful mixed-use project can be gratifying, financially rewarding, and extremely well-received by the community. GlobeSt.com: What else should our readers know about your company’s activities? Daniels: While the Richman Group of California Development Co. is about two-and-a-half years old and currently developing projects in L.A., Orange and San Diego counties, we are part of the Richman Group, founded in 1987 and headquartered in Greenwich, CT.  It is one of the nation’s largest privately owned residential real estate investment, development and asset management firms, with 15 regional offices and a portfolio of 1,500 geographically diverse rental communities around the country.  In response to the current real estate market’s compelling demand for luxury rental properties, The Richman Group has added an upmarket offering with the introduction of Richman Signature Properties . The new brand is dedicated to reimagining rental living with an emphasis on individuality, social connectivity, preferred signature amenities and a resident-focused culture. Rich services, attractive designs, and value-added benefits from a carefully curated list of partners complement and enhance residents’ lifestyles at all Richman Signature Properties. Each community offers residents a variety of comfortable floor plans and upscale design options along with resort-style amenities to accommodate residents’ needs. Richman Signature Properties will have nearly 15 luxury rental communities in its collection within the next two years located in desirable major residential markets, including our current San Diego projects, F11 and 330 13 ^th Street.