The Oxbow development

A rendering of a development underway on South Cottonwood Road that will have 12 residential buildings and two retail buildings.

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More than 100 additional apartments are planned for an 11-acre residential development underway off Huffine, adding 400 rental units to the west end of Bozeman.

Construction began on 268 rental apartments in “The Oxbow” development, on the 5500 block of South Cottonwood Road, earlier this summer.

Boise-based developer Roundhouse, which also broke ground on two apartment buildings on West Babcock Street this year, said it plans a second phase of construction that will add 132 more rental units to the development.

The first part of the project is on an opportunity zone, which provides tax breaks and other benefits for developers and investors who build in designated places, and is expected to cost about $80 million, said Michael Caldwell, the vice president of investments at Roundhouse.

That will include 268 units in 12 residential buildings and several retail spaces and is expected to wrap up in late 2023.

The second round of work is scheduled begin about a year after the first part is done, Caldwell said, adding another 132 rental units.

The Oxbow’s apartments will be one to three bedrooms in size, ranging in from 759 to 1,043 square feet. All 400 apartments will be rentals, he said.

The Oxbow development

A rendering of a development underway on South Cottonwood Road that will have 12 residential buildings, two retail buildings and a small park area.

The development will also have various “amenities” including a coffee shop, a spa, fitness and yoga studio, a community kitchen, working spaces and a 2.6-acre park, he said.

In total, the first phase of development will have 241,000 square feet of residential space, 1,500 square feet of retail space and 9,700 square feet of amenity space, the developer told the Chronicle in July.

Parking for the development will include attached garages, covered parking and parking lot spaces.

Roundhouse borrowed $46 million for the development, obtained by a real estate capital advisory company George Smith Partners — which announced the loan at the end of August. The rest of the money was raised through equity funding, Caldwell said.

In July, California-based investment company Kennedy Wilson spent $16 million to acquire 51% ownership of the development from Roundhouse.

The investment company owns another residential property in Montana — the Mullan Reserve apartment complex in Missoula.

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Juliana Sukut can be reached at 582-2630 or jsukut@dailychronicle.com

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