Greystar acquires Frankfurt site for develop-to-core venture

Greystar acquires a mid-rise residential project in Frankfurt as part of its Germany and Austria develop-to-core venture.

Communal area at Greystar's District Living scheme | BTR News

Greystar has acquired the Kanso development, a mid-rise residential project in Frankfurt. This is Greystar’s second acquisition with a global institutional investor for its Germany and Austria €1bn develop-to-core venture, which launched in mid 2021, and follows the announcement that Greystar purchased 234 units in Hamburg earlier this year.

The forward purchase transaction with Argaman Group will see the Kanso building ready for occupation from Summer 2022. Designed by V. Zelmanson and Planquadrat Architects, the 303-unit Build to Rent scheme will predominantly comprise studio and one-bed apartments. There will be a range of resident amenities, including a kindergarten, restaurant and retail space totalling 685 sqm.

The building will operate under Greystar’s expanding pan-European student and young professional brand Canvas Living. The brand is already operating in other European metropolises and university cities such as London, Coventry, Glasgow and Utrecht. Canvas Frankfurt will be the first building in Germany for the new multi-asset strategy, which enables Greystar’s partners to tap into a wider footprint and the financial efficiencies of scale via a license model.

“We are making good progress with our strategy to build a diversified portfolio in Germany and Austria from the ground up focusing on residential assets of scale. We are well capitalised and continuing to look for forward purchase, development and value-add opportunities in key markets including Berlin, Hamburg and Vienna. Our new asset will join our network of Canvas properties across Europe and as the footprint continues to grow, we hope to offer residents the ability to move seamlessly between locations, giving them easy access to a range of cities.”

Mark Allnutt, Senior Managing Director (Europe), Greystar

Canvas Frankfurt will house a range of amenities supported by a dedicated onsite team. The primary amenity zone on the ground floor offers a lounge and gym for residents, with floor to ceiling glazing overlooking the entrance courtyard. There is also a 200 sqm rooftop terrace providing skyline views.

Frankfurt is a global hub for commerce, culture and education, and is known for its financial centre. Canvas Frankfurt sits within Lyoner Quartier submarket; historically an office market, which has undergone regeneration. In the last ten years, the resident population has grown from 600 to over 5,000. The neighbourhood provides easy access to multiple employers and lifestyle amenities as well as public transport connections. The site is located 200 metres from the Niederrad S-Bahn-station.

“Since 2012, the Lyoner Quartier (formerly Bürostadt Niederrad) has been developing dynamically from a pure office district into a new mixed-use neighbourhood. The challenges are manifold. One has to compete with residential construction against economically more profitable uses and also create economically less advantageous uses such as retail and gastronomy, so that the entire situation becomes attractive for future users. Implementing the Kanso vision structurally took priority over cost or technically simpler solutions. In the end, the realisation exceeded our expectations.”

David Roitman, Founder, Argaman Group

Greystar entered the market in Germany and Austria in 2018 with the acquisition of District Living, a 110-metre high-rise in Vienna’s 22nd district on the banks of the Danube. The building has since completed and is due to open its doors to residents in June 2022.