A first for surge of Santa Fe apartment projects: Affordable housing

Nov. 29—Site work started in June on a 171-unit apartment complex that will be the first to meet Santa Fe's affordable housing requirements.

The 171-unit Casa Siena complex, 5750 Airport Road, will be the first market-rate apartment project in Santa Fe to make 15 percent of its units affordable rather than opt to pay the in-lieu-of fee to the city as some 20 other apartment projects have chosen.

Texas-based real estate development, investment and management firm Presidium Group acquired the city-approved development plan from local Santa Fe development team Raul Ramirez, Richard Valdes and Ben Teasdel. The local team in 2019 had proposed the 223-unit Casa Azul project for the southeast corner of Airport and South Meadows, pledging in its development plan to offer 15 percent and potentially 20 percent of units at affordable housing rates.

The affordable housing requirement for that property did not deter Presidium, said Mark Farrell, the company's president of development.

"We have several properties where we provide affordable housing," Farrell said.

Speaking in "ballpark" terms and "round numbers," Farrell estimated affordable monthly rates at $1,000 for one-bedroom units and $1,100 to $1,200 for two bedrooms, with market rates for the one bedrooms at about $1,500 and for the two bedrooms about $2,500.

The affordable units would be designated for residents earning 80 percent or less of the area median income, which is $45,160 for one person or $64,480 for a family of four, according to U.S. Department of Housing and Urban Development statistics.

The first tenants could move in around August-September 2023, with full build-out expected in spring 2024, Farrell said.

Farrell said Presidium has developed, owns and operates more than 50 apartment complexes with 13,000 total units. The Presidium website identifies 17 existing multifamily communities; most are 200 to 600 units, and six are smaller than the one proposed for Santa Fe. The website identifies 10 other apartment projects under development.

Presidium has apartments, student housing, office, retail and land assets in the Texas cities of Dallas, Fort Worth, Austin, College Station, Houston, San Antonio, Waco and Harlingen, and others in Atlanta, Maine, and Jacksonville and Tampa Bay in Florida.

Presidium is under contract to buy land in Colorado, which would be a new state for the developer, and Farrell said he is open to more apartment development in Santa Fe.

"If we're attracted to do one in a city, it would make sense to do another one," Farrell said.

Presidium found Santa Fe and the Casa Siena property at Airport and South Meadows roads through investment partner Argosy Real Estate Partners, based in Wayne, Pa. Humphreys & Partners Architects of Dallas is the project architect, and Pavilion Construction of Albuquerque was awarded the construction contract.

Casa Siena will be a single, three-story structure wrapping around two courtyards. Farrell describes one courtyard as "active" with a swimming pool and the other as "passive" with a fire pit and hammocks.

He said 15 percent of the units will be studios measuring about 560 square feet, 42 percent one bedrooms at about 800 square feet and 43 percent two bedrooms at roughly 1,150 square feet.

Kitchens and bathrooms will have granite counters. There will be stainless steel appliances, 42-inch cabinets, tile backsplashes and luxury vinyl tile flooring, Farrell said.

"We call it workforce housing," Farrell said. "We don't expect retirees. We expect young professionals, people relocating to Santa Fe, 25 to 40 years old. It's a working class population, probably on the younger side."