Bob Faktor, vice-president of land development for Anthem, who is based in Calgary, said it’s a very robust time in the city’s housing market with strong interprovincial and international migration.
“Calgary’s continued economic diversity and, frankly, still its relatively affordable home prices compared to other Canadian markets,” he said in explaining why the city appeals to Anthem as the company continues its robust pace of residential development, particularly in the suburbs.
Anthem’s newest development site was acquired in two separate transactions. The properties are east of the community of Mahogany at the southeast corner of 88th Street S.E. and Stoney Trail. The acquisitions took place over the past year – one of the vendors was a real estate company and the other was a farmer.
The plan is for 1,400 single-family lots, 22 acres of multifamily and five acres of commercial development.
“That would be the intention. Approximately 2,500 housing units and that would be 1,500 or so we project to be single-family units, single-family homes, and approximately 1,000 units of multifamily,” Faktor told RENX.
Anthem plans both condo and multifamily rentals
The multi-family component would consist of low-rise buildings comprising townhomes to four- to five-storey apartments. Subject to market conditions Anthem currently anticipates the apartments would be a mix of condo and rental.
“We still have to navigate these lands through the municipal planning. We do see (the commercial development) as community, neighborhood-oriented retail development,” Faktor added. “Currently we’re just coordinating with other landowners in this growth area to initiate the planning applications with the city.
“So we see that to be a four- to five-year period. We’re targeting construction and housing to come online in that five- to seven-year period.”
Faktor said one of Anthem’s reasons behind the assembly of that land is that it’s immediately adjacent to an established, built-out and successful, high-demand neighbourhood in Mahogany.
“It’s within an identified logical growth corridor within the City of Calgary and it’s got great access to a transportation network and corridors.”
Anthem has nine active Calgary projects
Faktor said Anthem has nine active land development projects in the Calgary region. He said a couple of the flagship properties are Glacier Ridge in north Calgary, Belmont in south Calgary, and Cornerstone in northeast Calgary.
“It represents approximately 1,500 to 2,000 single-family homes per year within our communities,” he said. “Both Glacier Ridge and Cornerstone are projected to have 4,000 units.”
Those nine projects are all in various stages of development.
“From an Anthem strategic standpoint, this (recent) acquisition, not only does it fit within our strategy to acquire strategic short- to medium-term land development parcels in those identified growth corridors and then soundly plan and service those lands to meet the market,” Faktor said, “with this acquisition we leveraged and synergized our partnerships with a number of the top homebuilders in the region. It’s part of this strategy.”
About Anthem
Anthem also recently announced an IPO for the Anthem Citizen Real Estate Development Trust, setting out to raise between $65 million and $82 million to own an interest in a mixed-use project in Greater Vancouver. The trust units are valued at $10.
The Citizen project is comprised of 372 condominium units, 200 market rental units, 73 non-market, affordable rental units, 176 hotel suites and 4,881 square feet of retail space. The REDT will be structured to develop the assets, commence lease-up and operate the project.
Citizen has rezoning entitlements in place, with construction expected to commence shortly after the offering closes. Total budgeted costs for the project are approximately $621.7 million, Anthem stated in its announcement of the trust.
Due to the status of the IPO, Anthem is not able to publicly comment on the trust at this time.
Founded in 1991, Anthem has invested in, developed or managed – alone or in partnership – more than 385 residential, commercial and retail projects across western North America.
Its growing residential portfolio includes 31,500 homes that are complete, in design or under construction, from master-planned, mixed-use residential and multifamily to townhome, rental and single-family communities.
It owns, co-owns, manages or has previously owned over 10 million square feet of retail, industrial and office space. Anthem has developed more than 60 communities across 9,000 acres of land in Alberta, British Columbia and California.