Archstone, one of the largest investors, developers, and operators of apartment communities in the U.S., has acquired The Frank, a 70-unit mixed-use multifamily project in Venice, Calif., for $56 million.
Three factors accounted for the sale price of the community — a thoughtful design, a market with constrained housing supply, and a high level of sustainability.
The Frank, located at 512 Rose Ave., was conceived in the distinctive Venice context — “best described as a hip and artsy enclave,” said Barbara Flammang, a principal of Killefer Flammang Architects, the firm that designed the community.
The project, which opened nine months ago, includes two large landscaped courtyards, a yoga studio, and two restaurants.
“Despite high monthly rents, which ranged from $3,000 to over $5,000, the apartment community was 98 percent leased at the time of the sale,” said Brent Gaulke of Portland, Ore.-based Gerding Edlin, the building’s developer.
Emphasizing the commitment to sustainability, the project includes a solar hot water system and earned LEED Platinum rating. Its energy consumption metric is 34 percent less than a typical building, the developer said.
The entitlement process for The Frank was especially demanding because the project’s site had been formerly occupied by the historic Pioneer Bakery, which was highly revered by the local populace, Flammang said. The conflict resulted in numerous community meetings before the city approved the project.
Interior highlights include large operable windows and balcony doors to welcome sea breezes; steel trellises; and glass balcony railings. Building materials included hardboard siding, exterior plastic, and red brick veneer.