JSQ Looks to Develop $160M Multifamily Portfolio

CHICAGO–After having raised $36.5 million through its JSQ Multifamily I fund, JSQ Commercial LLC and joint venture partner Watermark Residential have broken ground on a project in Louisville, KY and expect to do the same on two other multifamily projects before the year is out.

Partners JSQ Commercial of Hindsale, IL and Watermark, a subsidiary of Thompson Thrift of Terre Haute, IN, are targeting up to nine multifamily ground-up projects by the end of 2014 via JSQ Multifamily I. Company officials project the portfolio of approximately 2,100 apartments to be valued at approximately $160 million. JSQ states that the planned developments will range in size from 200 units to 400 units.

The Kentucky project, JSQ Watermark on Hurstbourne in Louisville, broke ground in June. The 270-unit development, valued at $27 million, is scheduled for completion by November 2013.

“We’re going to break ground on two more projects before the end of this year,” says Thomas Murphy, president and CEO of JSQ Commercial. One project, valued at approximately $32 million, is located in a suburb of Houston while another in the Indianapolis market is estimated at $21 million. The two projects will total 530 units, with Houston contributing 320 and Indianapolis 210.

“The development strategy relies on the expertise of JSQ and Thompson Thrift/Watermark in site selection, efficiency of design and cost effective construction," Murphy states. “Combining the resources of the two entities enables us to develop class A product in high barrier-to-entry suburban locations at a competitive price.”

JSQ's Fund I is a $26.5-million fund that targets office and industrial acquisitions, chiefly in the Chicago metropolitan market. According to JSQ’s website, the fund’s current investments include: 3825 Ohio Ave. in St. Charles, IL, a 158,200-square-foot industrial property; Brush Hill Office Courte, a 110,299-foot office building in Westmont, IL; and Riverwalk II, a 258,995-square-foot office building in Buffalo Grove, IL.

JSQ has raised more than $90 million of equity through funds I and II and Multifamily I. Since July 2010, the company has developed or invested in more than $80 million worth of commercial real estate.