By Jon Peterson
As demand for housing continues unabated across the region, developers continue to look for ways to gain a foothold throughout the cities across the greater Bay Area. One western developer, Denver-based Apartment Investment Management Company (AIMCO), has began working on plans to develop 16 luxury single-family rental homes for its Oak Shore project in Corte Madera on Robin Drive. The actual addresses for the homes will be established once the public REIT has recorded its final map with Marin County. AIMCO expects the total development cost on the project to be $47 million, as stated by the company in its 2021 second quarter earnings report.
This project will be one of a limited number of single-family homes for rent projects created in both Marin County and the greater San Francisco Bay Area. For-rent housing has attracted a number of institutional and large players from the across the count. The majority of this capital invested in the single-family rental sector over the past year has been targeting assets that are located in the Southeast and Southwest regions of the United States.
AIMCO wrote in an email: “The new single-family residence would offer housing to the Marin County submarket, [since] there has been very little housing product, both for-rent and for-sale, delivered to the Marin submarket over the past 10 years. The planned project gives family-oriented residents access to a waterfront lifestyle that would otherwise be significantly, and in some cases prohibitively, more expensive to attain if they were to buy.”
The land for the Oak Shore project will be leased from AIR Communities. The lease contract that AIMCO has signed last for 25 years. AIR has its Preserve at Marin apartment community located right next door to the proposed development. AIMCO expects that its project will be able to bring deliveries beginning in 2023, and it plans to stabilize the project sometime in 2025. Each of the homes will average around 3,200 square feet, plus eight dwelling units.
AIMCO is expecting that the main targeted audience for the homes will be young families. However, the broad range of potential renters could include retirees staying close to families or looking to downsize, individuals primarily moving from San Francisco or Silicon Valley, people relocating to Marin County from other parts of the US or abroad who are looking for a rental before they determine where to purchase a home, people whose primary employment is in the technology and financial sectors, renters who still need to commute to San Francisco or the Peninsula at least two to three days a week and people who value outdoor activities and a healthy lifestyle.
AIMCO has a small part of its investment portfolio geared to single-family rental assets. The public REIT is mainly focused on buying and developing apartment properties. This is reflected in the current size of its development and redevelopment portfolio. The value of these assets is $1 billion with single-family rental accounting for around $53 million of the value, or around 5 percent, as stated by AIMCO in its second quarter 2021 earnings report.