Single-Family Rental

Jeff Erxleben interest rates built to rent quote

Build-to-Rent (BTR) Property Type Offers Positive Demand Outlook

by Sarah Daniels June 9, 2022

By Jeff Erxleben, president, debt & equity at Northmarq Liquidity and an incredibly positive outlook for single-family build-to-rent (BTR) properties is helping to offset some of the turbulence developers are experiencing from rising interest rates. Developers have been ramping up the pace of single-family BTR construction over the past five years with forecasts that call for a record high 60,000 new units to be completed in 2022. That volume shows a steady increase over the 53,000 units completed in 2021 and 49,000 in 2020, according to Northmarq’s recently released Single-Family Build-to-Rent Properties Special Report. Although financing across all property types has been impacted by upward movement in both short- and long-term borrowing rates, the BTR sector is in a good position to shake off those challenges and maintain its growth momentum. Higher construction and financing costs are being offset by rising rents with year-over-year rent increases, that in many areas of the country, are quite substantial. Developers also are finding good access to both debt and equity. The number of lenders that are active in the space is expanding as developers move into new markets and continue to prove out business models and performance with successful lease-up and dispositions. For …

June 9, 2022

Acquisitions Arizona Build-to-Rent Development Western

Blue Vista to Develop Two Build-to-Rent Communities Near Phoenix

by Amy Works May 27, 2022

LITCHFIELD PARK AND GOODYEAR, ARIZ. — Chicago-based Blue Vista Capital Management has purchased land for two build-to-rent developments in Litchfield Park and Goodyear. The transaction, representing approximately $102 million in total capitalized value, is part of Blue Vista’s ongoing strategy of providing institutional investors with access to unique and differentiated core plus residential real estate opportunities. Located near the intersection of Dysart and Camelback roads, the Litchfield Park community will offer 153 residences with 54 one-bedroom duplex units and 99 detached two-bedroom, single-family units totaling 137,043 square feet. Situated near the intersection of Sarival Avenue and Yuma Road, the Goodyear community will feature 151 units in a mix of 60 one-bedroom duplexes and 91 detached two-bedroom, single-family units totaling 132,985 square feet. Upon completion, the projects will offer more than 300 homes with secure private gated entrances, private outdoor space, simulated wooden flooring, quartz countertops, stainless steel appliances, in-unit washers/dryers and nine- to 10-foot ceilings. Community amenities will include resort-style pools, clubhouses and outdoor lounge areas with grills.

May 27, 2022

Acquisitions Build-to-Rent Development Multifamily Single-Family Rental Southeast Tennessee

Haven Realty Capital, Yieldstreet Acquire Build-to-Rent Community in Chattanooga for $28.6M

by John Nelson May 23, 2022

CHATTANOOGA, TENN. — Los Angeles-based Haven Realty Capital, in a joint venture with funds managed by New York City-based Yieldstreet, has closed on the first phase of a $28.6 million acquisition of Hartman Hill, a 71-home build-to-rent (BTR) residential community in Chattanooga. The Haven-led joint venture will close on the remaining homes in phases over the next seven months. Hartman Hill is being developed on a 26-acre site at 5005 Dayton Blvd. in the Red Bank neighborhood, approximately eight miles north of downtown Chattanooga. At full buildout, the property will offer three- and four-bedroom homes ranging in size from 1,538 to 2,515 square feet. Each of the two-story homes will offer custom cabinetry with soft-close drawers, quartz countertops, tile backsplashes, stainless steel appliances, private backyards and direct access garages. Common area amenities will include a sports court, bark park and a pet washing station. The new ownership will maintain the landscaping for all homes and common areas.

May 23, 2022

Affordable Housing Bohler Build-to-Rent Content Partner Development Features Midwest Multifamily Northeast Single-Family Rental Southeast Texas Western

Build-to-Rent Planning and Entitlements: How to Avoid Challenges

by Sarah Daniels May 19, 2022

The build-to-rent (BTR) property type has gained significant traction in the commercial real estate market due to increasing interest from tenants, investors and developers. Developers moving into the BTR market before 2020 originally focused on this sector as an “in between” product for future home buyers who weren’t ready to commit to a single location but wanted additional space and amenities. The pandemic fueled tenants’ desires for more privacy and space without the long-term commitment of homeownership, which ignited growth in the sector. As costs for single-family homes continue to rise, the BTR niche also increasingly attracts would-be homeowners who are priced out of the homebuying market — and the growing demand for BTR properties draws the attention of more and more investors and developers. But not all stakeholders are immediately on board with development of BTR properties. The concept is rather new in some markets and local communities have questions about the zoning and operation of these hybrid communities, which are an intriguing mix of single-family concept and multifamily operations. Developers often need to educate municipalities about the BTR concept — and they need to plan BTR properties that work for the local community. This is where Bohler — a land …

May 19, 2022

Build-to-Rent Development Loans Single-Family Rental Texas

Tempo Capital Arranges $42M Construction Loan for Metro Houston Residential Project

by Taylor Williams May 13, 2022

CONROE, TEXAS — Chicago-based financial advisory firm Tempo Capital Group has arranged a $42 million nonrecourse construction loan for a 287-unit single-family rental project in Conroe, about 35 miles north of Houston. The project will be situated on a 45-acre site and will feature cottages, duplexes and two-story homes. Amenities will include a pool, fitness center and clubhouse. The direct lender and borrower were not disclosed. A construction timeline was also not released. Michael Berke led the debt placement for Tempo Capital Group.

May 13, 2022

Build-to-Rent Conference Coverage Development Features Multifamily North Carolina Single-Family Rental South Carolina Southeast Southeast Feature Archive

Speed to Market is ‘Almost the Only Priority’ for Multifamily Developers Looking to Avoid Cost Risks, Say InterFace Panelists

by John Nelson May 9, 2022

CHARLOTTE, N.C. — Multifamily developers are pushing their chips in and aggressively looking for new development deals, especially for sites in and around high-growth markets in the Southeast. Michael Tubridy, senior managing director of Crescent Communities, said his firm isn’t leaving anything to chance and is looking to move quickly on development opportunities. “We’re trying to get as many units on the ground today as possible, because tomorrow will be more expensive,” said Tubridy. “I like the chances of today’s cost environment a lot better than I like the unknown of where we’ll be a year from now or two years from now. Putting a premium on speed to market is something that we are much more focused on; it’s almost the only priority right now.” Tubridy’s comments came during the development panel at InterFace Carolinas Multifamily 2022. The half-day event was held on April 14 at the Hilton Uptown Charlotte hotel and attracted more than 260 attendees from all facets of the multifamily industry in North Carolina and South Carolina. Michael Saclarides, director of Cushman & Wakefield’s Multifamily Advisory Group, moderated the discussion. Crescent Communities is far from the only multifamily developer pursuing ground-up construction opportunities in earnest. In …

May 9, 2022

Acquisitions Single-Family Rental Texas

Morgan Properties Buys 136-Unit Single-Family Rental Community in McKinney, Texas

by Taylor Williams May 4, 2022

MCKINNEY, TEXAS — Metro Philadelphia-based investment firm Morgan Properties has purchased parcHaus at Skyline, a 136-unit single-family rental community located on the northern outskirts of Dallas in McKinney. The newly built community features one-, two- and three-bedroom homes with garages and private backyards. The amenity package comprises a pickleball court, pool, dog park and a business center. Dallas-based Provident Realty Advisors sold the property for an undisclosed price. Morgan Properties has rebranded the community as Elevate at Skyline.

May 4, 2022

Build-to-Rent Features Student Housing

Student Housing Players Make Big Push into Build-to-Rent Market

by Katie Sloan April 8, 2022

If there were any doubt that student housing stakeholders were quickly moving into the single-family build-to-rent market, the question was just settled for good. Chicago-based Harrison Street, one of the industry’s biggest players, recently announced a blockbuster deal to form a joint-venture with Core Spaces, one of student housing’s biggest developers. But this venture isn’t about student housing; it will invest up to $1.5 billion in subdivisions with hundreds of rental homes in markets such as Austin, Denver, Dallas, Orlando and Nashville. “We had an ah-ha moment,” says Justin Gronlie, managing director and Head of Education Real Estate at Harrison Street. He explains that Harrison Street was among the first firms to invest cottage-style student housing back in 2007, and since then, has developed and acquired more than 27 BTR-style student housing communities comprising 19,000 beds. The off-campus single-family style homes in highly amenitized developments are similar to the product in build-to-rent communities. “Due to our unique experience and track record in student housing, we recognized the patterns and magnitude of the BTR opportunity in front of us and pounced at it,” says Gronlie. Like student cottage projects, build-to-rent (BTR) or build-for-rent (BFR) developments offer detached units, townhomes or …

April 8, 2022

Development Single-Family Rental Texas

Camden Property Trust to Develop Single-Family Rental Community in Metro Houston

by Taylor Williams March 29, 2022

RICHMOND, TEXAS — Houston-based REIT Camden Property Trust has acquired 16 acres in the southwestern Houston suburb of Richmond for the development of a single-family rental community that will total 180 to 200 residences. The site is located within the 58-acre Grand Center at Long Meadow Farm mixed-use development. Ashley Strickland of NewQuest Properties represented the seller, CJ Development, in the sale of the land. Kenneth Danna of Dosch Marshall Real Estate represented Camden Property Trust. A construction timeline was not disclosed.

March 29, 2022

Build-to-Rent Development Single-Family Rental Texas

Mill Creek Residential Underway on 271-Unit Build-to-Rent Community in Celina, Texas

by Taylor Williams March 16, 2022

CELINA, TEXAS — Mill Creek Residential is underway on construction of Amavi Celina, a 271-unit build-to-rent residential community that will be located about 35 miles north of Dallas. The unit mix will consist of 155 cottages, 94 townhomes and 22 single-family detached homes. Amavi Celina will span 45 acres and will feature a trail system, dog park, fitness center and resort-style pool. Keaton Merrell and Shannon Hersker of Walker & Dunlop originated a four-year, interest-only construction loan to Mill Creek Residential for the project, a completion date for which was not disclosed.

March 16, 2022

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