APARTMENTS CONTINUE TO SHINE
Favorable demographics and shifting housing preferences continue to drive healthy apartment demand. The U.S. homeownership rate declined to 63.5% in 2016, the lowest level in nearly 50 years. More than 2.2 million new jobs were added during the year, and wage growth is accelerating as well, giving consumers more take home pay. Higher net incomes and new jobs are continuing to add new households to the renter pool.
As we enter the eighth year of the current expansion, market conditions remain favorable, but are moderating from record levels. Third Quarter 2016 rent growth was 2.2% nationally, but Sunbelt markets where we operate are still registering rent growth in the 4% to 5% range. Completions peaked in 2016, but additions to supply are projected to taper this year and through the end of the decade as both lenders and equity providers are becoming more selective on both markets and sponsorship. We view this as a positive check on excess supply, which will bene t our projects and target markets in the long run. A steady in ow of new renters, primarily millennials entering the rental market and aging baby boomers who nd rental housing more attractive than homeownership, will keep apartments a favored asset class for both consumers and investors alike in the years ahead.
With these positive market forces at work, ZOM’s business continues to ourish. In 2016, we started work on Seazen and Azola in the Tampa market, and will start work on several new projects in south Florida this year. Lease-ups will be completed at Monarc at Met 3, Baldwin Harbor, Delray Preserve, and Luzano. Solitair Brickell begins leasing in the Summer. In Texas, our Tate project in Houston will stabilize, and in the Mid-Atlantic region, Banner Hill will open its doors this Summer in Inner Harbor Baltimore. We plan to start new projects in Dallas and also in two new ZOM markets – Charlotte and Chicago.
We continue to focus on highly walkable city center locations that are convenient to work, retail, entertainment and culture. Smaller living units in our urban highrise and midrise projects help to maintain affordability, while creative design elements and high-quality interior nishes cater to more discriminating renters. We are also actively exploring the senior housing niche, as a growing pool of aging baby boomers are looking for higher levels of services and lifestyle amenities, and prefer larger living spaces.
This year marks ZOM’s 40th year in the real estate business. From our humble beginnings in Orlando in 1977, ZOM has grown into a national rm, recognized among the top 25 largest apartment developers in the U.S. ZOM’s projects have garnered over 130 awards for excellence in design and quality. We are extremely grateful to our employees, shareholders, capital partners and development consultants, each of whom has played a pivotal role in ZOM’s success through the years. We look forward to continuing ZOM’s tradition of developing well-conceived, design-driven rental housing products, and delivering attractive investment returns to our shareholders and investor partners.
349-UNIT, 6-STORY MIDRISE DEVELOPMENT IN THE HEART OF BALTIMORE’S INNER HARBOR
Banner Hill is centrally located between Baltimore’s energetic Federal Hill neighborhood, and the employment centers of Harbor East and Downtown. The site has easy access to both I-95 and MARC Rail, providing convenient commuter access to Washington, DC. Amenities will include ample below grade parking, a rst oor e-lounge with Wi-Fi, computer stations and café seating, tness-club quality exercise center, sports simulator, a resort-style in nity pool, bocce court and lush landscaped courtyards. Interior features include island kitchens, hard surface countertops in both the kitchen and bathroom, custom stand-up showers, walk-in closets and private balconies. Groundbreaking was August 2015, with rst units available mid-2017.
262-UNIT, LUXURY HIGHRISE AND MIDRISE APARTMENTS IN THE BRICKELL DISTRICT OF MIAMI
Maizon at Brickell is a distinctive 8- and 20-story structure, with attached structured parking. The ground oor will host 15,000 square feet of retail space, as well as leasing and amenity space. The amenity level will occur on the 8th oor, inclusive of a luxurious pool deck located on top of the parking structure, as well as a suite of amenities inside, including a membership-quality fitness center, resident entertainment kitchen, and e-Lounge. The units within the tower will enjoy splendid cityscape views to the north, and views of Biscayne Bay to the east and to the south. Each unit will feature European-styled kitchens with quartz countertops, stainless steel appliances, tile flooring, private balconies, programmable NEST thermostats, and electronic unit entries. Maizon will offer residents a variety of spacious, functional oor plans ranging from 482 square feet to 1,950 square feet. Maizon is convenient to popular retail and entertainment hubs such as Mary Brickell Village and the new mixed-use Brickell City Centre. The Maizon site is just steps away from the metro- and people mover, providing excellent linkages to downtown Miami, Coral Gables, and the Miami International Airport. Brightline transit will debut in 2018, providing statewide express train service via the new Miami Central Station. Construction start is planned for Spring 2017, with first units in Winter 2018.
323-UNIT, 3- AND 6- STORY WRAP, LUXURY WATERFRONT APARTMENT HOMES ON TAMPA BAY, ON THE ISLAND COMMUNITY OF ROCKY POINT
With over 750 linear feet of shoreline, Seazen’s residents will have spectacular views of Tampa Bay. Seazen at Rocky Point will feature spacious and well- appointed one-, two- and three-bedroom units ranging from 647 to 1,669 square feet. Interior unit features include island kitchens, quartz countertops, stainless steel appliances, contemporary cabinets and tile backsplashes, walk-in closets, and private patios. The apartment homes will also feature hardwood-styled plank ooring throughout the living and dining areas. Seazen’s amenities include a 12,000 square foot clubhouse, membership- grade tness center with dedicated yoga/ spinning classroom plus on-demand virtual tness trainer, two resort-style pools, four waterfront courtyards, pet salon, Bark Park, an aqua lounge – a waterfront amenity center featuring paddle-boards and kayaks, and on-site boat slips. Immediately adjacent to the property is the Courtney Campbell Trail, a 9.5 mile dedicated hike/bike trail spanning the bay from Tampa to Clearwater. Construction commenced in October 2016, and rst units are expected Q2 2018.
188 GARDEN-STYLE UNITS OVERLOOKING THE INTRACOASTAL WATERWAY AND THE ATLANTIC OCEAN IN DELRAY BEACH, FLORIDA
Delray Preserve is thoughtfully nestled in seven two-, three- and four-story buildings spread across 8.5 acres. The community center opened in June 2016, and features a leasing of ce and on-site amenities, including a club room, cyber cafe, and tness center. The clubhouse overlooks tranquil and lushly landscaped grounds, and a resort-style pool with beach entry and private cabanas. Residents enjoy a children’s tot-lot and Bark Park. Delray Preserve features one-, two- and three- bedroom units, with direct access one- and two-car garages on select units. The project was completed in December 2016.
MONARC SHINES
IN THE HEART OF DOWNTOWN MIAMI
Monarc at Met 3 opened in May 2016 as downtown Miami’s rst purpose built luxury apartment community in over ten years. The highrise is built over a ground-level Whole Foods grocery with 12 levels of structured podium parking. The highly walkable location is surrounded by businesses, restaurants, nightlife and public transportation. Monarc’s 20 levels of apartments overlook Biscayne Bay and the Miami skyline. The complex features a unique 13th oor amenity level and pool deck with resort-style walk-in entry pool. Residents also enjoy a spacious open entertainment area and membership- quality tness center. Unit interiors feature Italian kitchens with Caesarstone countertops and German plumbing xtures, walk-in closets and private balconies. Monarc is experiencing a rapid lease up and will reach a stabilized occupancy in 2017. The project recently received 13 awards, most notably the prestigious NAHB Multifamily Pillars of the Industry national award for Best High-Rise Development of the Year, NAHB National Green Multifamily Project of the Year, NAHB Best of American Living, as well as platinum honors for Best Overall Builder and Best Overall Product in Florida’s 2016 BEST Awards.
404-UNIT, GARDEN-STYLE, LUXURY RESIDENTIAL APARTMENT COMMUNITY JUST MINUTES FROM THE ATLANTIC OCEAN IN POMPANO BEACH, FLORIDA
Centrally located on Atlantic Boulevard in Broward County, Luzano is adjacent to Florida’s Turnpike, providing easy access to major south Florida employment centers. Luzano features spacious apartment homes housed in 19 three- story buildings with two-story end sections in select buildings. Spacious three bedroom units feature direct access; two-car garages and additional single garages throughout provide breezeway access to living units. Floor plans range from 655 to 1,545 square feet. Interior unit finishes are a cut above the market, featuring well-appointed island kitchens, granite countertops, contemporary cabinets, wood-style flooring, walk-in closets and private patios. The large community center features a membership-quality fitness center, e-lounge, resort-style pool, and private cabanas. Leasing is well underway, with an average absorption of 27 units per month, and market leading rental rates. Completion is scheduled for Q2 2017.
366 GARDEN-STYLE UNITS IN THE BRANDON SUBMARKET OF TAMPA, FLORIDA
Azola at Magnolia Park is a 366-unit luxury multifamily rental community comprised of 13 three-story buildings spread across 25-acres, and nestled among mature tree preserves and nat- ural areas. A large community center will feature a leasing of ce and on- site amenities including a club room, cyber café and tness center. The clubhouse will be situated adjacent to an oak hammock and lushly land- scaped grounds, and will feature a resort-style pool with beach entry and private cabanas. Residents will also enjoy a children’s oversized tot-lot, Bark Park, bike storage, jogging trail and serene preserve views.
Azola at Magnolia Park will be com- prised of spacious and well-appointed one-, two- and three-bedroom units in a variety of oor plans ranging from 704 to 1,467 square feet. Construction commenced December 2016 and rst units will deliver Q4 2017.
483-UNIT, 4-STORY LUXURY LAKEFRONT RENTALS IN ORLANDO’S PRESTIGIOUS BALDWIN PARK
Baldwin Harbor is the crown jewel of Baldwin Park. Developed on the only remaining waterfront parcels in Baldwin Park Village Center’s “Main Street”, Baldwin Harbor is just steps from an exceptional array of shopping and dining venues in one of the most desirable neighborhoods in Orlando. Housed in architecturally distinctive 4-story buildings with integral dedicated and secure parking, Baldwin Harbor boasts an elaborate suite of amenities, including two private, resort-style, saltwater pools with expansive views of Lake Baldwin, a membership-quality tness center, and lushly landscaped terraces and open space for the exclusive use of Baldwin Harbor residents. Since opening in April 2016, the project has been well received in the market, with an average absorption pace of 31 move-ins per month and market leading rents. The project was completed in January 2017. The project recently received 8 industry awards, most notably the prestigious NAHB Multifamily Pillars of the Industry national award for Best Low-Rise Development of the Year, NAHB Best of American Living, as well as platinum honors for Land Planning and Pool Design in Florida’s 2016 BEST Awards.
NEW REGIONAL OFFICE OPENS
ZOM Carolinas debuted in 2016 and is based in Raleigh, North Carolina. ZOM veteran Darryl Hemminger will lead the development effort in this new region, with an emphasis on larger high-growth markets such as Charlotte and Raleigh. The rst ZOM Carolinas project will be HAZEL SouthPark, a distinctive 6-story midrise, with attached, secured structured parking. Nestled in the most af uent neighborhood of Charlotte, the Hazel site is proximate to over 4.2 million square feet of Class A of ce space and an easy stroll to SouthPark Mall, with over 1.6 million square feet of upscale retail, anchored by Nordstrom and Neiman Marcus. Hazel will host 14,000 square feet of retail space, including a signature restaurant, and 9,400 square feet of leasing and amenity space. Construction is scheduled for Summer 2017.
ZOM RECOGNIZED AS MULTIFAMILY LEADER
ZOM was included among the nation’s top 25 apartment developers by the National Multifamily Housing Council, which publishes the authoritative ranking of the largest apartment owners, managers, developers and contractors in the U.S.
ZOM recently garnered two national NAHB Pillars Awards, three NAHB Best of American Living Awards, NAHB Multifamily Best in Green Award, 22 Florida’s BEST Awards by the Builder’s Association of South Florida, Best Commercial Mixed Use Complex (Monarc at Met 3) at South Florida Business Journal’s Structures Awards, and Green Builder of the Year from the Florida Green Building Coalition.