First project for experienced apartment developers planned near Houston
San Antonio/Houston, TEXAS--LYND LIVING and T.R. Inscore, LLC, both accomplished developers and operators of multifamily properties nationwide, have formed a joint venture to develop single-family build-to-rent communities in Sun Belt states and suburban Chicago. Their first project is planned for Waller, Texas located just northwest of Houston.
The partners analyzed the single-family build-to-rent space over the past two years, and in doing so, learned why it had become so popular.
“Essentially, we found out of all the people who rent, 70% lease homes and 45% cannot afford to buy a home,” said A. David Lynd, CEO of LYND LIVING. “What we are going to be doing helps meet the demand for people who want homes but cannot afford them. Also, the move ‘professionalizes’ what had been a ‘mom-and-pop’ approach of renting houses. Now, these renters will get institutional ownership and professional management/maintenance for a much better experience.”
In Waller, the companies will develop a $35 million gated rental community, called the Village at Waller. They recently closed on a construction loan for the first phase which consists of 118 single-family homes on 14.7 acres. There are plans to eventually build up to 700 units on an additional 52 acres, depending upon demand.
The Village at Waller will feature a mix of 2-and-3-bedroom homes ranging in size from 1,090 square feet to 1,657 square feet, all designed with a sleek, modern look. Each home will have two covered-parking spaces, fenced backyard, a complete appliance package and an electronic keyless entry. Community amenities include a resort-style pool with an adjacent cabana that has a covered patio, two-sided fireplace and flat screen TVs; outdoor kitchen with BBQ grills; a Precor fitness facility open 24/7; dog park and playground.
Lease rates will range from $1,600 per month to $2,250 per month.
Waller is located near a sprawling 4.2-million-square-foot manufacturing and distribution campus for Daikin HVAC which employs 6,500 people. “With an employment base like that, we think there is a tremendous opportunity to do very well with our first project out of the gate,” said Ron Inscore, president of T.R. Inscore, LLC which has built and sold an apartment project, Ranch at Waller, in the area previously. “People who have been used to renting apartments can now enjoy the benefits of a single-family home with a large backyard along with significant community amenities.”
San Antonio-based LYND LIVING has been developing, buying and managing apartment communities for over the past 41 years, operating in 29 states and 60 metro areas. It has developed or acquired more than 28,000 units valued at nearly $4 billion. Chappel Hill, Texas-based T.R. Inscore, LLC has more than 25 years’ experience in development and construction management and has built over 8,700 units valued at nearly $1 billion.
Both groups have partnered on multifamily deals for the past 15 years. Most notably, they developed The Ranch at Arrington, a 272-unit garden-style community in College Station, Texas, and EnV, a 29-story luxury apartment tower in Chicago that won the prestigious High-Rise of the Year by Multifamily Executive and set a record price upon sale.
For this single-family rental program, the partners plan on sourcing sites and developing communities together, and utilizing the best-in-class technology to manage them. With a half dozen new sites in the pipeline, LYND LIVIING and T.R. Inscore also plan to create a brand as they expand nationally.
“In the multifamily world, we have a track record of building quality rental product and providing exceptional living experiences for our residents,” said Lynd. “We are well positioned to replicate that winning formula in the single-family-home-for-rent model and look forward to taking this next chapter in our company’s growth.”
Lynd and Inscore hope to capture the evolving preferences of a maturing millennial demographic and the work-from-home trend necessitated by the pandemic.
“These young working professionals who have lived in densely populated urban areas want something different now,” Inscore said. “They want a new single-family home in a well-amenitized suburban community, where they can start a family or just enjoy more living space, and more workspace if needed.
“Even though they are now gravitating towards a home in the suburbs, many millennials still don’t like to be tied down, so renting gives them options and flexibility,” Lynd said. “As a result, we think this build-to-rent single-family home trend is here to stay and we are still ahead of the curve in bringing new product to market.”
Construction is expected to begin immediately, with the first homes to be delivered in the early first quarter of 2022.
