In June 2012, HREV joint ventured with SMA Equities and Lynk Holdings in the acquisition of an 8,000 SF land assemblage. SMA/Lynk had put the parcels under contract at an attractive land basis and needed an experienced Sponsor/Developer to develop the project. Total development costs amounted to $42.3MM, with sponsorship securing $26.8MM in construction financing from Santander Bank.
Marketed as “Jones l.e.s.” (www.jonesles.com), the property offers a mix of studios, one, two, and three bedroom units. The building also offers amenities typical of Class A buildings, including 24-hour doorman service, a 2-floor resident lounge, bicycle storage, a fitness center, a private courtyard at ground level, a landscaped roof deck, a barbecue area, and a movie screening area. The building has been well received and is 100% leased at rents exceeding original underwriting. HREV successfully realized its investment and sold the property for $61.5MM in the third quarter of 2017.