In less than 12 months, Haven Realty Capital has leased 100 percent of their first four fully completed build-to-rent (“BTR”) housing communities representing 304 homes in the greater Atlanta, GA metro.
The four communities that were under construction at the time -- Bella View in Snellville, Trickum Hills in Lawrenceville, The Reserve in Dallas, and Moss Pointe in Canton -- were part of a six-community 537-home BTR portfolio acquired by Haven Realty Capital in partnership with an affiliate of Walton Street Capital, L.L.C from builder/developer ResiBuilt in October 2020 for $133.7 million. The remaining two subdivisions, Macland in Dallas and Magnolia Trace in Holly Springs are in the final phases of construction, with both projects exhibiting strong leasing, according to Haven Realty Capital Managing Principal Sudha Reddy.
“The demand for single family rentals, particularly those in dedicated rental communities remains strong, allowing us to lease homes before they are delivered,” said Reddy. “We anticipate stabilizing the final two Atlanta communities soon after receiving final certificate of occupancy. We are seeing this leasing velocity throughout our portfolio of BTR communities.”
“Haven understands the build-to-rent market and the demographics of the typical renter as well as anyone in the industry,” added Jay Byce, CoFounder of Resibuilt Homes. “This was a key factor in the successful execution of their business plan and we look forward to working with them on future projects.”
Since 2019, Haven, one of the most active SFR investors in the country, has approximately $850 million of BTR projects in various stages of development, construction and stabilization. This represents 27 BTR communities in eight states representing approximately 3,000 homes. Haven typically forms partnerships with builders at various phases of development.
Each of the completed 226 single-family homes and 78 townhomes in the four Atlanta BTR communities has at least three bedrooms and average more than 2,200 square feet. Despite the large size of the homes, the renter profile is nearly evenly split between households with and without children, with approximately one third of the homes rented by an individual or a single parent. The approximate age range of adults living in the four communities is early to mid-40s, with an approximate average household income of $125,000. This is approximately 45% higher than the median household income (in 2019 dollars) of $59,948 in the Atlanta MSA.
According to a study conducted by John Burns Real Estate Consulting’s New Home Trends Institute of more than 1,100 single family renters, of those who would prefer to own, only 25% were held back by financial circumstances. More than 40 percent of the respondents cited the flexibility, less maintenance, and fewer financial responsibilities behind their preference to rent versus buy.
“Late-stage Millennial family formation, decreasing interest in traditional home ownership, Baby-boomers looking for maintenance-free single-family home living and increased telecommuting -- trends that pre-dated the onset of COVID-19 -- have resulted in a surge of renter demand for single family housing,” added Reddy. “Single family rental homes also provide a flexible option for individuals who want to transition out of homeownership but remain in the suburban environment. Our numbers continue to support that.”
