The Tinsley
Armadale.
Redefining Build-To-Rent
On a prominent site in a revered location at 737-739 High Street, Armadale our team has proudly completed its newest development. Over 430 sqm and five levels, The Tinsley features 11 high-end apartments plus a ground floor commercial component.
The Tinsley has been designed, built and developed to fill a very specific niche as a multi-generational asset for the Jadig family using the Build To Rent (BTR) model. And its walls tell a story that sum up our DNA and different approach.
BTR is not a new concept; family offices have been building blocks of flats and keeping them since the 70s and 80s. But you simply cannot find a newly-constructed apartment block anymore – they either don’t exist or are extremely rare. Today, the BTR market trend is focussed on big towers around CBDs, and while this is great for the housing undersupply, it is not our style.
A new approach
When the Armadale site came up in April 2018, we knew immediately that we wanted to buy it and apply Jadig thinking. With 1 per cent vacancy rates in the area along with strong high street shopping appeal, the location was ideal, and it’s also in our backyard close to our nearby project in Irving Rd, Toorak.
The owner was selling the site with a permit to develop, because they couldn’t make the numbers stack up as a build to sell project. The yield on the permitted 13 small apartments was too tight, the build costs were too high, as would have been the expensive sales and marketing campaigns required for the area.
We stepped in as the highest bidder because we offered a different approach – moving from a sales approach to a long-term hold approach. And we found a few other ways to evolve the previous design.
For example, we would build the site completely from Tinsley Lane at the rear, which reduced costs because we didn’t need to move tram and powerlines on High Street or introduce complex traffic management plans. We would also remove the basement garage and integrate the Tinsley Lane access directly into car stackers, which would reduce costs significantly.
Owner’s Mindset
But to really create longevity and asset security in the BTR sector, we needed another shift. And that was to build apartments designed and built for rent – with an owners’ mindset.
Most developers and designers think with the owner in mind, creating beautiful amenity, fittings and fixtures that encourage people to live in a space for a long time. But renters rarely get to see them or experience owner-occupier focused investment product. So, we’ve done exactly that, we’re just not selling them to owners. We’ve put them to the rental market, for tenants to live in for years instead of months.
To do so, we needed to rethink the original floor plan. We were already seeing changes in the rental market, such as people being prepared to pay more for larger apartments. So, we amalgamated the original 13 investor-focussed apartments into 11, creating more two- to three-bedroom apartments, instead of more one- to two-bedroom offerings.
We worked with our consultants at Ron Unger Architects and Selzer Design to create 11 premium apartments that embrace light, feel spacious and timeless, fitted with amenity including engineered floorboards, porcelain benchtops and integrated appliances. The approach is high quality, long-lasting and durable.
As a result, the building is now completely leased. We also have family members living in the building, as well as a family business on the ground floor, Be Kids Therapy. While its future success is yet to be determined, we are proud to have created a multi-generational asset that will remain in our family with a focus on quality and timelessness. We have a building that will provide us with diversified income at the same time providing rental stock that is much-needed into the market, and which is considered, and well-designed.
For us, business is personal. The Tinsley is appropriately named after the laneway at the rear, and is a testament to the hard work, dedication and commitment we have to the building industry for the long term.
