The forerunner of an expected wave of multifamily projects in Nob Hill’s Central Avenue corridor, the four-story Platinum Apartments at 4100 Silver SE, is more than 50 percent leased, four months after a soft opening in early August.
A new apartment property typically takes about a year, sometimes two, to lease up to somewhere approaching full occupancy, said Billy Eagle, an apartment broker at commercial real estate services firm CBRE. Variables unique to a given property, like monthly rents and location, can be factors.
“Our leasing velocity has gotten more robust,” said project developer Rick Goldman of Chicago-based Golden Spike Development. “We’ll be stabilized by February.”
Platinum’s monthly rents are at the top end of Albuquerque’s apartment market, starting at $1,000 for a first-floor studio and topping out at $2,000-plus for fourth-floor units with large decks and panoramic views. Rents range from $1,375-$1,800 for most of the 62 one-bedroom units, depending largely on the view.
CBRE’s latest apartment market report says the average rent for a one-bedroom unit was $687 a month metro-wide as of September. Eagle said many renters in Albuquerque’s apartment market are price sensitive, thus the comparatively low average rent.
Platinum’s lease-up is a “good pace” for a smaller apartment property at the high end of the market, he said. The relatively fast pace did not surprise Kelle Senyé, executive director of the Apartment Association of New Mexico.
“It’s new and exciting to the market,” she said. “Even though the rents are higher there, they’re justified.”
The renters come from all age groups and backgrounds, Goldman said, noting there’s been interest from a number of out-of-staters moving to Albuquerque. The property’s appeal is in part based on its recently received platinum certification through the Leadership in Energy and Environmental Design program, he said.
Known for its high scores as a walkable and bikeable area, Nob Hill saw a wave of redevelopment during the real estate boom that died off during the crash.
Platinum Apartments and the three-story Carlisle, which will have 36 condos for sale, at Central and Carlisle SE are early projects in the next wave. The redevelopment of the historic, but rundown, De Anza Motor Inn at 4301 Central NE is expected to start late in the first quarter of 2016.
The Platinum will be open to the public for a grand opening celebration on Dec. 3 starting at 4:30 p.m., coinciding with the annual Nob Hill Holiday Shop & Stroll.