A Pennsylvania developer has purchased nearly 30 acres of land in Auburn to build an apartment complex, and all in, expects to spend $25 million on the project.
A.R. Building Co., headquartered in Seven Fields, Pa., plans to develop 128 housing units, which will be a mix of one- and two-bedroom apartments in two four-story buildings. They’ll be connected by a clubhouse, and the apartment complex will feature a gym, pool and in-unit laundry facility.
The address is 0 Mt. Auburn Ave., near the Auburn Mall Shopping Center. Craig Young of the Boulos Co. represented the seller, Just Because LLC.
Young said the 29.12-acre parcel, zoned for housing or office use, had been on the market for a couple of years.
“So this was the perfect use and they came along at the right time,” he said of the buyer.
Jason Kambitsis, president of A.R. Building, told Mainebiz that his company has three apartment complex developments planned in Maine: in Auburn, Brunswick and Scarborough.
A.R. Building started development in New England eight years ago and turned its attention to Maine to fill a need for new product, he said.
“There were communities that needed new development, Auburn being one of them,” Kambitsis said. “The same with Brunswick and Scarborough.”
The company looks for potential development locations in major business and retail areas, he said. “That helps us understand the demographics and where people want to be.”
Courtesy / Indovina Associates Architects, A.R. Building Co.
The complex will include shared amenities such as a clubhouse.
The company, which specializes in the rental market, builds complexes of between 100 to 250 units. Almost all of its portfolio is rental property. It currently runs over 9,000 units in 10 states, in New England and beyond.
A.R. Building generally works with architecture firms in Pittsburgh, and then acts as the general contractor, owner and manager of the properties, he said.
“Once you’ve built something and you have it leased up and you don’t have outside investors, it’s only your own stake in it,” Kambitsis said. “So we have no reason to get rid of the property.”
The focus is on market-rate units. The demographics of renters, he said, includes younger people who want to stay in their community and want low-maintenance living situations and older people ready to shift out of homeownership.
“It’s mostly single people and families,” Kambitsis added.
Apartments in the Auburn complex will range in size from 525 square feet to 1,100 square feet. One-bedrooms will rent for $1,400 to $1,500 per month and two-bedrooms for $1,800 to $1,900 per month.
Construction is expected o begin this spring with a targeted completion period of 24-36 months.
A.R. Building has a second office in Rhode Island and plans to open a third in Maine, at a location still to be determined. The company is financing its $25 million investment through equity from its portfolio, along with a construction loan.
In March, the town of Brunswick approved A.R. Building Co.’s plans for a 202-unit apartment complex at 305 Bath Road.
https://www.mainebiz.biz/article/pennsylvania-developer-plans-to-build-25m-apartment-complex-in-auburn
