Build-to-Rent

Economic Forces Brew a Perfect Storm for Build-to-Rent

by Jeff Shaw February 6, 2024

By Adam Wolfson and Darryl Kasper of Wolfson Development Co. Against a backdrop of recently proposed (though unlikely to pass) legislation aimed at forcing large build-to-rent (BTR) and single-family-rental investors to shed units and convert them to for-sale housing, BTR fundamentals — and the investment case for the sector — remain strong as ever. While debatably well-intentioned, the legislation mistakes correlation for causation. The BTR sector is indeed benefitting from problems in the housing market. However, these problems pre-dated the industry and are more likely caused by factors such as inflation, high interest rates and limited supply. These forces are at play throughout the United States, but they are especially prevalent in the Southeast, where they align to create what could be the perfect storm for BTR rent growth. Inflation, Wage Growth Will Drive Rent Growth Inflation has run rampant since mid-2021 for a variety of reasons, including economic dislocation caused by the pandemic and the subsequent stimulus packages the U.S. government provided in response, as well as high gasoline prices and a supply chain crisis. According to U.S. Inflation Calculator, the annual inflation rate skyrocketed from 1.4 percent in 2020 to 7 percent in 2021, then fell slightly to …

February 6, 2024

Arizona Build-to-Rent Development Loans Single-Family Rental Western

CBRE Arranges $35.2M Construction Loan for Bella Olivia Build-to-Rent Community in Peoria, Arizona

by Amy Works February 2, 2024

PEORIA, ARIZ. — CBRE has arranged a $35.2 million construction loan for Arizona-based Bela Flor Communities to develop Bella Olivia, a build-to-rent property in Peoria, a northwestern suburb of Phoenix. Construction is currently underway, with the property slated to open in summer 2024. Located at 9625 W. Olive Ave., Bella Olivia will feature 112 one-, two- and three-bedroom units across 16 residential buildings. Community amenities will include a resort-style pool and spa, designated walking trail, tot lot and dog park. Bruce Francis, Doug Birrell, Bob Ybarra, Shaun Moothart, Nick Santangelo and Jim Korinek of CBRE Capital Markets Debt & Structured Finance secured the 80 percent loan-to-cost, full-term interest-only, nonrecourse loan with an initial 30-month term.

February 2, 2024

Build-to-Rent Development Multifamily Single-Family Rental Southeast Virginia

Partnership Begins Leasing Next Phase of Build-to-Rent Townhome Development in Ashburn, Virginia

by John Nelson January 31, 2024

ASHBURN, VA. — A partnership between American Real Estate Partners, GreenBarn Investment Group and Rithm Capital has begun the next wave of leasing at CityHouse Ashburn Station, a 200-unit build-to-rent luxury townhome development underway in metropolitan Washington, D.C. Bozzuto Management Co. is the property manager of the development, which is being delivered in phases. The latest phase adds 12 townhomes to the development, which is expected to fully deliver in early 2025. CityHouse Ashburn Station is situated near the Ashburn Metro Station and features three-bedroom, three-bathroom townhomes ranging in size from 1,544 to 2,486 square feet. All units feature dens, attached garages and oversized windows, and select units include 15-foot kitchen islands and rooftop terraces with outdoor fireplaces. Amenities include a sports court for pickleball or basketball, private playground, pavilion and outdoor kitchen with grills and dining areas, green space for yard games and a pet park. Dream Finders Homes is the general contractor for the project. Rental rates range from $3,495 to $5,590 per month, according to the CityHouse Ashburn Station website.

January 31, 2024

Build-to-Rent Development Single-Family Rental Texas

Capital Square Nears Completion of 195-Unit Build-to-Rent Residential Project in Denton, Texas

by Taylor Williams January 8, 2024

DENTON, TEXAS — Virginia-based Capital Square is nearing completion of a 195-unit build-to-rent residential project in the North Texas city of Denton. Perch Denton will sit on 18 acres and feature a mix of one-, two- and three-bedroom homes with an average size of 1,005 square feet. Amenities will include a pool, fitness center, business center, dog park, pavilion and a pickleball court. Capital Square is co-developing Perch Denton with Good + West Residential and Montgomery Street Partners. Full delivery is slated for the end of the first quarter.

January 8, 2024

Build-to-Rent Development Single-Family Rental Texas

Urban Moment Nears Completion of 247-Unit Build-to-Rent Residential Project in Metro Austin

by Taylor Williams January 5, 2024

ROUND ROCK, TEXAS — Austin-based developer Urban Moment is nearing completion of YardHomes Meadow Lake, a 247-unit build-to-rent residential project in the northern Austin suburb of Round Rock. The development offers one-, two- and three-bedroom units that range in size from 635 to 1,375 square feet and that feature private backyards. Units are furnished with stainless steel appliances, granite countertops, walk-in pantries and keyless entry mechanisms. Amenities include a pool, fitness center, dog park, event lawn and outdoor grilling and dining stations. Preleasing is underway, and the grand opening is slated for February.

January 5, 2024

Alabama Build-to-Rent Development Multifamily Single-Family Rental Southeast

JCCG Breaks Ground on 201-Unit Build-to-Rent Townhome Development in Huntsville

by John Nelson December 18, 2023

HUNTSVILLE, ALA. — General contractor Jim Chapman Construction Group (JCCG) has broken ground on Nestledown Farm, a build-to-rent (BTR) residential community in Huntsville. Upon completion, the development will feature 201 attached townhomes in two- and three-bedroom layouts ranging from 1,020 to 1,466 square feet. Amenities at the community will include a 4,000-square-foot clubhouse, swimming pool, fitness center, dog park, illuminated sidewalks, gated entrance and 24-hour emergency maintenance services. Move-ins are scheduled to begin in fall 2024.

December 18, 2023

Acquisitions Build-to-Rent California Development Single-Family Rental Western

Kidder Mathews Brokers Sale of 188-Unit Aviatrix Build-to-Rent Development Site in Fairfield, California

by Amy Works December 13, 2023

FAIRFIELD, CALIF. — Kidder Mathews has arranged the sale of The Aviatrix, an 18.9-acre build-to-rent development site in the Bay Area city of Fairfield. Republic Urban Properties acquired the asset for an undisclosed price. Located at 5005 Peabody Road, The Aviatrix will offer 188 build-to-rent townhomes, a clubhouse, pool, spa, multi-use sport court and trail system. Matthew Clark of Kidder Mathews represented the buyer and undisclosed seller in the deal.

December 13, 2023

Build-to-Rent Development Florida Multifamily Single-Family Rental Southeast

LyvWell Communities Develops Wellness-Centered Townhomes in Tampa’s Deer Valley

by John Nelson December 6, 2023

TAMPA, FLA. — LyvWell Communities announces its latest build-to-rent development in Tampa: 115 new townhomes in the Deer Valley district. Land development is currently underway, with move-in dates available as early as summer 2024. LyvWell Communities caters to the health-conscious preferences of residents, developing properties with amenities such as pools, dog parks, outdoor fitness areas, Zen zones, community pavilions and community gardens. From fenced yards and garages to versatile living spaces equipped with air and water filtration systems, blackout shades for restful sleep, and circadian lighting, LyvWell Communities offers a comprehensive approach to well-being. According to Mike Bednarski, CEO of LyvWell Communities, “LyvWell Communities is driven by a mission that transcends traditional real estate. Our vision is to provide not just homes, but living experiences that emphasize wellness, community and self-preservation.” Community is a central pillar of the LyvWell Communities mission, and property managers host a wide variety of events and activities for their members such as group fitness classes, community barbecues and healthy cooking classes. LyvWell Communities’ development team has extensive experience in residential and multifamily development, investment and management and covers the Southeastern United States and Texas with their housing offerings.

December 6, 2023

Arizona Build-to-Rent Development Single-Family Rental Western

Saunders & Amos, MEB Management Near Completion of 194 Single-Family Rental Homes in Tucson, Arizona

by Amy Works December 5, 2023

TUCSON, ARIZ. — Saunders & Amos and its management partner MEB Management Services have begun pre-leasing at Casitas Catalina, a single-family rental development in Tucson. Slated to open in 2024, Casitas Catalina will offer 194 single-family rental homes in a mix of one-, two- and three-bedroom floorplans. The property features pre-installed fiber-optic Wi-Fi, covered parking and smart-home technology for each resident. Situated on 19 acres, the community also features an outdoor pool and spa. Move-ins for the $50 million project are slated to begin this month, with final construction extending through early 2024.

December 5, 2023

Build-to-Rent Features Single-Family Rental

Why Build-to-Rent Continues to Take Commercial Real Estate by Storm

by Taylor Williams December 4, 2023

By Mark Taylor, managing director, residential, American Real Estate Partners For young families across the country, the dream of homeownership has been delayed due to high mortgage rates, low supply and rising build costs. Many millennials, particularly those with growing families, are ready to move into their first homes but cannot afford either the down payment or the increased mortgage payment. According to Pew Research Center, 65 percent of Americans under the age of 35 still rent, as opposed to a market average of around 33 percent. That’s why build-to-rent (BTR) homes are booming; they offer residents the space and privacy of a house with a lower price tag, alongside the extensive amenities and institutional property management services of rental apartment living. For most people, rent is by far their largest monthly expense. Ideally, they want to live somewhere that is safe, stylish and comfortable — all things that BTR homes offer. Here are some of the reasons BTR is taking the real estate industry by storm. The Economics BTR appeals to investors as well as residents. Whether townhouses or single-family, BTR homes are typically larger than traditional apartment units and generally include an attached garage. The trunk rent, or …

December 4, 2023

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