Single-Family Rental

Pete ONeil SFR BTR quote "The rapid acceleration of investment in the SFR/BTR space is expected to continue into 2022 and beyond. Not only is the product type attractive to renters and investors, but the projects that are being delivered are coming online in some of the highest-demand regions in the country."

Single-Family/Build-to-Rent: Changing Renter Demographics Fuel Growth

by Sarah Daniels February 24, 2022

Demand for all forms of housing has been on the rise in recent years, a trend that is expected to continue in 2022. One segment of the market that is attracting significant attention is single-family/build-to-rent (SFR/BTR), as a series of economic and demographic shifts increase the attractiveness of an alternative to traditional apartments. Developers are ramping up activity on thousands of new units, particularly in the high-growth southern U.S. markets. Dozens of projects totaling more than $1.5 billion sold in 2021. Meanwhile, billions of dollars of debt and equity capital continue to move into this increasingly attractive investment class. Northmarq’s National Multifamily 2022 Outlook covers the record-setting momentum that multifamily properties across the United States saw last year and projects what the market may see in 2022. Northmarq’s full report is available here (with further rundowns on factors like the overall economy, rent trends, the investment market and financing climate). Their analysis on the SFR/BTR market below breaks down the trends and opportunities for growth in this burgeoning sector. Reasons for Growth Several factors are prompting the development of SFR/BTR. A primary influence is the changing mix of renters; today’s renters are generally older and more affluent than in the past. These …

February 24, 2022

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

NorthMarq Arranges $22.4M Construction Financing for Build-to-Rent Community in Chandler, Arizona

by Amy Works February 16, 2022

CHANDLER, ARIZ. — NorthMarq has arranged $22.4 million in non-recourse construction financing for Arizona-based TruVista Development for the development of The Villages at Chandler, a build-to-rent residential community in Chandler. Spanning 8.9 acres, the property will feature 109 units, averaging 886 square feet, in a mix of one- and two-bedroom craftsman, cottage and bungalow style units with private backyards. The gated community will also feature a central greenbelt, dog park, pool and residence club with an indoor amenity area.

February 16, 2022

Build-to-Rent Development Indiana Midwest

Onyx+East, Pretium Form Joint Venture to Invest $600M for Development of Single-Family Rental Homes

by Kristin Harlow January 24, 2022

INDIANAPOLIS — Indianapolis-based homebuilder Onyx+East has formed a joint venture with investment management firm Pretium to invest approximately $600 million to develop, build and operate new single-family build-to-rent communities. The joint venture plans to build over 2,000 homes across the Midwest and Florida’s West Coast. In 2022, the partnership intends to develop six communities totaling more than 700 homes in Indiana, Ohio and Florida. Progress Residential, Pretium’s single-family rental platform, will operate and manage the communities.

January 24, 2022

Build-to-Rent Development Single-Family Rental Texas

Taylor Morrison to Develop 240-Unit Single-Family Rental Community in Metro Houston

by Taylor Williams January 14, 2022

CYPRESS, TEXAS — Arizona-based homebuilder Taylor Morrison (NYSE: TMHC) will develop a 240-unit single-family rental (SFR) community in the northwestern Houston suburb of Cypress. Homes will come in one-, two- and three-bedroom formats and will range in size from approximately 750 to 1,250 square feet. Communal amenities will include a pool, fitness center, event lawn and a dog park. Christopher Todd Communities will operate and manage the property. Initial occupancy is slated for late 2023.

January 14, 2022

Build-to-Rent Illinois Midwest

Core Spaces, Harrison Street Launch $1.5B Build-to-Rent Joint Venture

by Kristin Harlow January 11, 2022

CHICAGO — Chicago-based Core Spaces and Chicago-based Harrison Street have formed a joint venture that will invest up to $1.5 billion for the development and acquisition of single-family build-to-rent (BTR) communities in major metro areas across the U.S. Core Spaces formed its existing BTR platform in 2020. The joint venture’s BTR pipeline represents approximately $2.5 billion in total capital and more than 6,500 units in markets such as Austin, Denver, Dallas, Orlando and Nashville. To date, Core Spaces and Harrison Street have nine committed BTR projects in various stages of development. The two companies have an established track record partnering on student housing transactions.

January 11, 2022

Build-to-Rent Loans Single-Family Rental Texas

Berkadia Arranges Acquisition Loan for 144-Unit Build-to-Rent Community in Kyle, Texas

by Taylor Williams January 4, 2022

KYLE, TEXAS — Berkadia has arranged an undisclosed amount of acquisition financing for Urbana at Plum Creek, a 144-unit build-to-rent community in the southern Austin suburb of Kyle. The property was built in 2021 within the Plum Creek master-planned development. Homes come in one-, two- and three-bedroom formats and range in size from 632 to 1,246 square feet. Communal amenities include a pet park with washing stations, a pool and an outdoor lounge with a fire pit and grilling spaces. Scott Wadler and Matt Nihan of Berkadia arranged the three-year loan through CrossHarbor Capital Partners on behalf of the buyer, Florida-based Beacon Real Estate Group.

January 4, 2022

Acquisitions Build-to-Rent Colorado Single-Family Rental Western

Inland Real Estate Purchases Single-Family Rental Community Near Denver from NexMetro for $63.1M

by Amy Works December 17, 2021

BRIGHTON, COLO. — Phoenix-based NexMetro Communities has completed the disposition of Avilla Prairie Center, a purpose-built single-family-rental community in Brighton. Chicago-based Inland Real Estate Group of Cos. acquired the asset for $63.1 million, or $464,000 per unit. Located at 2103 Peregrine Drive, Avilla Prairie Center features 136 homes. Inland has purchased two other Avilla Homes communities from NexMetro. Dave Potarf, Matt Barnett, Dan Woodward and Jake Young of Walker & Dunlop handled the transaction.

December 17, 2021

Acquisitions Build-to-Rent Content Partner Features Leasing Activity Midwest Multifamily Single-Family Rental Southeast Texas Walker & Dunlop Western

Multifamily Investment Sales Strong in Southern States; Gaining More Interest in Midwest

by Sarah Daniels December 10, 2021

Multifamily investment benefitted from the uncertainties of the past year, but will the transaction volumes of 2021 be used to gauge the likely outcomes for 2022? Managing directors Todd Stofflet and Jason Stevens of Walker & Dunlop’s Chicago office review 2021 and what the trends of this year indicate for the direction of the industry. REBusiness: What have you seen regarding multifamily investment activity this year? Stofflet: Early in the pandemic, we saw a lot of investment pull away from retail and office, focusing more on industrial and multifamily. In 2021, the multifamily sector has fared very well and a lot of new investors have entered the multifamily market. If you talk to some of our colleagues in the Southeast and the “smile states,” they will tell you that transaction volume has never been higher and the amount of capital chasing these opportunities has never been bigger. Across the country, it has been a very strong year for the sector. REBusiness: Do you think 2021 will be a record year in terms of sales? Stevens: If our pipeline is any barometer for that, the answer is “absolutely,” but it will be market dependent. What you’ll find is that sales in …

December 10, 2021

Acquisitions Single-Family Rental Texas

Fundrise Acquires 163-Unit Single-Family Rental Community in Houston

by Taylor Williams December 8, 2021

HOUSTON — Fundrise, an investment firm with roughly $1.7 billion in assets under management, has acquired Balcara at Balmoral, a 163-unit single-family rental (SFR) community in northeast Houston. Homes at Balcara at Balmoral feature one-, two- and three-bedroom floor plans, as well as garages and backyards. Amenities include a clubhouse, leasing center and a children’s play area. Fundrise acquired the 20-acre community from Houston-based Balcara Group and Dallas-based Montgomery Street Partners for an undisclosed price.

December 8, 2021

Build-to-Rent Conference Coverage Development Features Multifamily Single-Family Rental

InterFace Panel: Site Costs, Entitlements Processes Contribute to Build-to-Rent Projects’ Unique Risk Profile

by Taylor Williams December 7, 2021

ATLANTA — The build-to-rent (BTR) space boasts a scintillating story of short-term success, driven by demand from households that rent by choice and want the feel and privacy of owning a home without dealing with maintenance and paying property taxes. Building to rent involves developing residential properties with the explicit, predetermined purpose of renting them. This differs from single-family rental (SFR), a more established practice of buying existing single-family homes and renting them out that has its roots in mom-and-pop investments but is now being adopted by larger companies. The rapid growth of the BTR space has brought challenges that are markedly different from those of building and operating traditional multifamily and student housing properties. A panel of experts outlined some of these commonplace hurdles at the 12th annual InterFace Multifamily Southeast conference on Thursday, Dec 2. About 350 industry professionals attended the event, which took place at the Westin Buckhead hotel in Atlanta. For starters, the space can be a tough one to break into. Developers undertake different strategies for launching their BTR platforms and divisions, frequently partnering with single-family homebuilders or leveraging existing relationships with third-party general contractors. This is largely because these developers often lack the in-house …

December 7, 2021

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