A flat apart: The BlackBrick suite of aparthotels such as BlackBrick Sandton One (above) are illustrative of a new trend in hotel/residential hybrid living. Photo: Supplied
BlackBrick, conceived by seasoned entrepreneurs Jonathan Liebmann and Moritz Wellensiek, has made strides since it launched in 2019. The group now owns or co-owns and operates six aparthotels in South Africa.
Aparthotels consist of hotel-type rental apartments and residential apartments that investors can buy. The prices typically range from R800 000 to R1.8 million.
“We have created a brand of aparthotels that serves a dynamic young market of entrepreneurs, professionals, and other talented people who want a variety of top services where they live and work,” says Liebmann.
He has worked in numerous industries and was the visionary behind the Maboneng Precinct in downtown Johannesburg. At BlackBrick, he manages dealmaking and new developments while Wellensiek oversees operations.
“We bought our first building at the end of 2018. It was the former head office of SAB, located on Fredman Drive. We redeveloped it, and our first guests and residents moved in November 2020. Since then, we have gradually improved our product for it to become a slick aparthotel offering. Each year or so we have opened a new aparthotel,” Liebmann says.
These aparthotels have fully equipped kitchens or kitchenettes, expansive living spaces, and hotel-standard services such as concierges and housekeeping. BlackBrick can accommodate a range of visitors and acts as a hotelier. Whether you’re a business professional on a two-month assignment or a family looking for a longer stay, aparthotels offer the flexibility, comfort and convenience that modern travellers want from traditional hotels. People who own apartments at BlackBrick sites get hotel discounts, as do people at any other site worldwide.
So far, there are two aparthotels in Sandton: BlackBrick Sandton One and BlackBrick Sandton Two. One is along Fredman Drive, while the other is over the road. It was developed out of the former office of the law firm Hogan Lovells.
BlackBrick has adopted a circular economy model, using recycled materials to construct as much of each building as possible. This method reduces harmful effects on the environment and appeals to eco-conscious consumers; 70% of travellers indicate a preference for sustainable accommodation.
HTF Market Intelligence, an Indian-based global consultancy, reports that the aparthotel market is projected to grow at a large compound annual growth rate of 22.5% from 2024 to 2030.
BlackBrick partners with different groups to roll out each aparthotel. For example, the unlisted Setso Property Fund, backed by the Buffet Group and KLT, has been a partner on two of its developments.
It also recently opened an aparthotel in the suburb of Gardens in central Cape Town.
Another recently completed aparthotel is BlackBrick Bedford, which partnered with the country’s largest property group, Growthpoint Properties. Growthpoint was looking to repurpose some of its A and B grade office space. The building was previously the office of Airports Company South Africa.
Growthpoint was the primary developer, using its cross-sector development expertise for the R200 million residential conversion project. The initiative was undertaken in a joint venture with Setso Property Fund (49%) and in collaboration with BlackBrick Hotels.
This is a great example of an innovative office-to-residential conversion where companies can alleviate surplus office space in the market and fulfil the need for housing demand with residential space in parts of Johannesburg.
BlackBrick Bedford spans 35 000 square metres and offers more than traditional accommodation with its botanical forest setting. The site has rolling gardens, a koi pond and a sculpture garden in collaboration with Nirox. Liebmann’s father, Benji, founded Nirox Sculpture Park in the Cradle of Humankind. It also has an art collection featuring works by local artists such as Naledi Modupi and Reginald Teys.
Freedoms Kitchin is BlackBrick Bedford’s flagship restaurant. It is headed by Kagiso Sebediela, a culinary professional and entrepreneur. The restaurant is black-owned and has multiple locations in Johannesburg.
The newest development is BlackBrick Umhlanga, which is being co-developed with Avoca Developments. Avoca is a strong match for the project given its experience in delivering high-quality projects on time and within budget, including several in Umhlanga Ridge. This is arguably KwaZulu-Natal’s highest-growing real estate area, especially residential and leisure developments.
“While our brand identity is key and has been established over several years, each BlackBrick development has some unique characteristics. We understand our product — which is why we like to partner with developers who have people on the ground at each site. These are people who understand the area where we are developing. It creates opportunities to develop a variation of projects in key cities in South Africa and soon beyond,” says Liebmann.
“The Umhlanga Rocks locale, particularly below the highway, comes with excellent real estate fundamentals, with constrained supply and high demand driving property value upwards,” he says.
Liebmann said BlackBrick Umhlanga will transform a 1980s office building into a 10-storey aparthotel on Stanley Grace Crescent. The development will feature 81 units ranging from one- to two-bedroom apartments, the majority of which will have sea views. The architectural design was created by the team at System Architecture, a partner of BlackBrick.
Liebmann and Wellensiek are from Durban and are happy to return home to create this new offering.
System Architecture has partnered with them in the past. Its head architect, Andrew Makin, has encouraged the use of local artists. He says each housing unit will integrate outdoor spaces with the interior through private verandas. Openness is a design principle of System Architecture.
Investors will gain access to BlackBrick’s network of aparthotel facilities and benefits, including 10 free accommodation nights a year at any BlackBrick location and a 15% discount on network reservations.
All BlackBrick sites are equipped with open-space workstations and private meeting rooms for those who work remotely.
The apartment sales at BlackBrick Umhlanga help finance the developments, as has been the case with previous developments.
“We like that our model is flexible and that each development can have a mix of hotels or residential units. Some developments only have hotel units and no residential sales,” says Liebmann.
BlackBrick also works with international groups, including designers from Mexico City, where there are plans to build an aparthotel. The group is considering Atlanta in the US, as well as Amsterdam and Berlin in Europe.
They aspire to build BlackBrick aparthotels in 25 to 30 neighbourhoods over the next seven years. “We are looking at CBDs and metropoles. In South Africa, the likes of Rosebank, Sea Point and Stellenbosch are on our radar,” Liebmann says.
BlackBrick’s buildings are geared up for millennials, Generation Z and other people who work around the world. “It suits people who live and work between cities. These include digital nomads and people sent by companies to work on multi-month projects,” Liebmann says.
Ask Ash examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email ([email protected]) and X (@askashbroker).