TruAmerica Multifamily has launched a Build-For-Rent development division. Its goal is to build townhomes and single-family rental communities in suburban markets that would be in balance with the company’s existing multifamily platform. CEO & founder Robert Hart made the announcement, while veteran BFR executive Mitch Rotta will lead the new initiative as senior managing director.
The markets the division plans to make the initial roll-out in are Southwest, Southeast and Texas suburban markets, which already represent 60 percent of the company’s $16.1 billion multifamily portfolio.
Affordability challenges, credit qualifications standards of homebuying, as well as the changing demographics in the U.S. have led to a decline in single home ownership rates, but the desire to live in a home still remains, said Hart in prepared remarks. He added that BFR provides another housing option for individuals who can’t afford to own a home or would simply prefer to rent.
Rotta, who has been working in the burgeoning BFR market for most of his career, will use his extensive relationships within the industry to assemble TruAmerica’s in-house BFR development team. It is slated to include professionals in land acquisition, entitlement and construction. Rotta said in a prepared statement that the company is already engaged in acquiring entitled land and will close the acquisitions of several land parcels in North Carolina, Texas and Florida, intending to break ground on the first communities by the end of 2022.
The company intends to focus on communities with townhomes ranging between 1,200 and 1,500 square feet, as well as single-family homes between 1,800 and 2,200 square feet. They also plan to establish rents that are affordable to working class individuals.
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