The Flats at Alpine Junction, located at 303 Hwy. 26, Alpine, WY 83128 in the world-renowned Jackson Hole Area, is the proposed acquisition of 19.4 acres with a maintenance building, an existing 16-unit multi-family building, three additional 16-unit buildings, currently in the foundation-poured phase, plus 116 ground-up, multi-family rental units.
This site has 80% of its horizontal infrastructure in place, which includes water, sewer, and electricity. There are 3 acres of commercial land along the highway to be marketed upon acquisition. The 6,000-square-foot maintenance building will be retooled into a clubhouse, which will include a leasing office, a cybercafé/co-working area, a fitness room, a hot tub, a turf area for outdoor exercise, BBQ grills, a patio with seating, festoon lighting, and shade sails.
The site is within a 45-minute drive of the Town of Jackson, which offers an airport, a variety of dining options, job opportunities, and world-class amenities and recreation. Additionally, it is another 20 minutes to Teton Village, the primary ski resort area, located at the entrance to Grand Teton National Park and Yellowstone National Park. Most Jackson workers must commute over an hour and a half to and from Afton and Idaho Falls, ID, so this location is considered close-in. It is one block as well from an airstrip for small planes and jets. Billionaires litter the area from Teton Village to Jackson and into the unincorporated areas down valley towards Alpine. They invest tremendous amounts of dollars in their local philanthropic and investment pursuits, offering a lot of upside potential for a profit upon sale. Tourism, construction, and retail services generate the most jobs in the area.
Upon completion, the project will offer a total of 180 market-rate, wood-frame units with a partially masonry exterior. The site is currently approved and entitled for 160 units, but we will be requesting an increase in density to 180 units. An opportunity exists to condominiumize the units, too, for a significant profit. Plentiful surface parking will be provided. There will be 5 spaces, with an expansion opportunity of up to 20 additional spaces, for electric vehicle charging.
The City has met with the development team and supports our interest in increasing the density. The town and area are suffering from an acute housing shortage, so they acknowledge the need for more units. The three buildings under construction are, of course, permitted, and the remaining will need to be permitted, which is not a lengthy process. The pursuit of the revised site plan would be done during the cold weather months when construction cannot occur. The entitlement process is expected to take 9 months.
The units will have high-end appliances, 9-foot ceilings or higher, in-unit washer/dryers, ceiling fans, central heat via heat pumps, and balconies/patios. The construction will complement the existing construction and the surrounding neighborhood in its appearance.
The 1BR and 2BR/2BA units will be offered at approximately the following rental rates:
Mkt Rate
1BR: $2,650
2BR: $3,700
These rents are considered affordable in this area even though they appear higher than market-rate rents in most US markets, but the priciest. The rents are slightly higher than those in the fully occupied, existing 16-unit building. It leased up fast and has not really tested the market with its rents. The rents are probably 30% lower than comparable rents in the Town of Jackson, where multi-family condos in the $3MM to $5MM range are common and, due to its high land cost, precludes the construction of high-quality rental properties. Single-family average home prices are in the $10MM range in Jackson Hole, heavily skewed by homes trading for much more.
Project costs will total approximately $87 million, to be financed with equity to be sourced and a permanent/construction loan from a private lender/investor.
The project developer is Garrison L. Hassenflu. Mr. Hassenflu is the Managing Member of Garrison Community Development, LLC, the development entity. He has over 27 years of experience in development, having developed over $140,000,000 in affordable and mixed-income living units totaling over 1400 units in six states. Currently, he has a portfolio of 400 units from the sale of most of his portfolio of projects over time. His work has received, on two occasions, the top historic rehab/adaptive reuse award from the National Housing and Rehab Association. An affiliate of the developer will serve as the property manager, as it has over 25 years of experience.
The project will be designed by the current project architect. It will be constructed by United Contractors, Salt Lake City, who have strong local experience.
The seller, who is self-performing the construction currently, will continue in that capacity until our team steps in at the acquisition closing. The project will pay the seller for the value of the land and all construction he has completed as of our acquisition date. We expect that to be 50% completion of the three buildings containing 48 units. Then, United takes over as GC through project completion. We expect a December 15, 2025 acquisition date, an April 2026, start of the buildings containing the 116 units, and a construction completion date of July 15, 2027. We expect absorption of 25 units per month, based on the lease-up schedule of the initial building.