Haven Realty Capital (“Haven”) in joint venture with capital partner CenterSquare Investment Management (“CenterSquare”) has closed on the first phase of a $41.8 million acquisition of a 151-home build-for-rent (“BFR”) community now under construction in the Greenville suburb of Fountain Inn, South Carolina.  The Haven-led joint venture will close on the remaining homes in phases over the next 12 months. 

Foxchase built by the seller, Charleston-based homebuilder Crescent Homes, will include 87 single family homes and 64 townhomes offering three-, four- and five bedroom open-concept floorplans as large as 3,040 square feet.   Each home features a private yard, direct access two-car garage, nine-foot ceilings and is appointed with stainless-steel energy efficient appliances, Moen plumbing fixtures, granite countertops, and wood plank flooring.  Common area amenities will include a children’s playground, pool, cabana, and neighborhood walking trail.  The -32-acre rental home community is expected to be completed in Spring 2023(date).

Foxchase is located at near the intersection of Howard Drive and North Main Street, Fountain Inn’s primary retail arterial which runs through the city’s central business district approximately one mile away.  With easy access to I-385, Fox Chase is 20 miles southeast of Downtown Greenville.   With a population of only 10,000 residents, Fountain Inn is part of the Greenville MSA, the third largest metro, and one of the fastest growing in South Carolina.  Considered the economic engine of South Carolina, Greenville is home to 32 businesses that employ at least 500 people including Prisma Health, Michelin North America, Duke Energy Corporation and Fluor Corporation.

“BFR is helping to meet the demand by both young adults and families who prefer to rent than own, but want more space and freedom than an apartment can offer,” said Haven Founder and Managing Principal Sudha Reddy.   “Our goal is to add to the housing stock.  We work with homebuilders around the country to provide them the ability to build homes for both renters and buyers. Historically, our communities are fully stabilized within weeks of receiving certificates of occupancy, with many of our residents qualified to buy their own home.”  

This is the second BFR community for the Haven/CenterSquare joint venture in Greenville.  In February 2021, the partnership acquired Harrison Landing Townes, a 166-home community nearing completion in Simpsonville, SC.  The partnership also owns a 127-home rental community under construction  in Atlanta.    

“Our investment in Foxchase demonstrates CenterSquare’s conviction in the sector and the long-term growth of the Sunbelt markets,” added Chris Picyk, Vice President of Private Real Estate for CenterSquare. “We look forward to delivering this value proposition with our repeat partner Haven Realty to the residents of Foxchase and will continue to seek similar opportunities across the region.”

Real estate investment management firm Haven Realty Capital (“Haven”) has closed on the first phase of a $17.5 million acquisition of Dartford Townhomes, a 57-unit build-to-rent community located in the Nashville suburb, Spring Hill.   Haven expects to acquire the remaining homes in phases over the next eight months.  

Each of the 1,680-square-foot two-story townhomes will include three bedrooms, two-and-a-half baths, private rear-yard and patio, and an enclosed one-car garage.   The modern kitchen design includes stainless steel appliances, granite counter tops, walk-in pantry and peninsula bar.  The large 250-square-foot master bedroom features an en-suite bathroom and two walk-in closets. 

“The Dartford Townhomes will provide additional housing options for individuals and families looking to rent a home with a larger floor plan,” said Haven Realty Capital CEO and founder Sudha Reddy.   “Unlike apartments which typically have smaller floor plans, homes in a build-to-rent community offer renters larger living spaces and extra storage which many apartment buildings simply can’t offer.”   

Spring Hill, is a suburban community located 30 miles south of Nashville, one of the fastest growing cities in the U.S.   Drawn by a young and educated workforce (with 30 higher learning institutions including Vanderbilt and Tennessee State University), quality of life and low-cost of living, many major corporations including Amazon, Alliance Bernstein and Mitsubishi Motors have established a significant presence or relocated its corporate headquarters to Nashville. Other companies such as FedEx and Western Express continue to expand their operations in the MSA.   The city’s population growth has been made up of younger individuals and growing families. Forty seven percent of Nashville population is under the age of 35, ranking it as one of the youngest cities in the country, according to MoneyTalks. 

“This is a demographic that is a renter by choice, not necessity.  We have found that the SFR sector has increasingly attracted individuals and families that prefer renting over homeownership,” added Reddy. 

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 to eventually acquire and professionally manage the entire community. 

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.” 

Real estate finance veteran Eric J. Kim has joined Haven Realty Capital as Managing Director and Head of Capital Markets.

At Haven Realty Capital, a leading single-family rental (SFR) investor and operator, Kim will focus on expanding the firm’s equity and debt platforms through his relationships with institutional partners and equity investors.  He will also play key role in the management of the company’s existing discretionary SFR fund business. 

Kim brings to Haven more than two decades of experience in the SFR industry and real estate capital markets working with a wide range of investors, including pension funds, private equity funds, high-net-worth individuals and family offices, foundations, endowments and sovereign wealth funds.

“Eric’s experience and industry knowledge along with the trust he has cultivated with investors makes him a valuable addition to our team,” said Haven CEO and Founder Sudha Reddy. 

Prior to joining Haven Realty Capital, Kim was co-founder and Chief Operating Officer for SFR investment management platforms RealtyAlgo and InvestReal.  Previously, he was Chief Development Officer and Head of Capital Markets at True Investments, a Newport Beach, CA family office with 1,200 SFR assets across 13 markets.  Eric also spent nearly a decade in the New York Investment Banking houses of Zelman & Associates, Keefe Bruyette and Woods, Lehman Brothers and UBS Investment Bank.  During his investment banking career, he advised and executed more than $45 billion of real estate and housing transactions including public equity & debt offerings, private placements, mergers & acquisitions, and restructurings.  He began his career as an assistant portfolio manager in the Newport Beach office of BlackRock.  

Kim has a BA in Social Science from the University of California, Irvine and an MBA in Finance and Real Estate from Cornell University.   

Haven Realty Capital has expanded its Single Family Rental portfolio after closing on the completed first phase of its $23 million acquisition of Windermere Trails, a 54-home dedicated rental community (DRC) now under construction in Knoxville, TN. This is Haven’s first DRC acquisition in The Volunteer state.

Windermere Trails is being developed on a 21-acre site at 11103 Hardin Valley Rd, in Knoxville. Each of the two-story, 2,180-square-foot homes offer four-bedrooms, 2.5 baths, attached garage, engineered hardwood floors, stainless steel appliances, granite countertops, and tile backsplash. Several homes also include the “Gameday Package,” an exterior back porch area that includes an extended roof overhang, wood burning fireplace, stone mantle, ceiling fan and TV hookup outlets.

The remaining homes in the development will be acquired in phases from the homebuilder over the next four months following issuance of the certificate of occupancy. The development is on track to be fully stabilized by November 2021. 

Haven controls approximately $500 million in DRC’s in different phases of development, construction, and leasing.  The portfolio now includes 17 DRCs across 7 states including Arizona, Georgia, Illinois, Nevada, North Carolina, South Carolina, and Tennessee totaling more than 1,700 homes. 

The firm plans to double its number of homes under control over the next 12-18 months, according to Haven Realty Capital Managing Principal Sudha Reddy. 

“We’re seeing growing interest in single family rental homes from families and individuals who want to transition out of homeownership or remain in the rental market but still enjoy the benefits of larger living spaces in suburban environments,” Reddy said. “Our experience in the single-family rental sector, along with our longstanding relationships with the country’s top homebuilders and an escalating investor base with a strong appetite for the asset class, has allowed us to continue to expand our portfolio and build scale over a short period of time.”

Haven has focused much of its initial development in the Southeast because of the continuing influx of people from around the country who are relocating to lower-cost-of-living markets like Knoxville to live and work. The Knoxville MSA has strong employment in higher paying jobs, and the median household income within one-mile of Windermere Trails is $94,000.

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Haven Realty Capital Adds to SFR Portfolio with $30.6 M Acquisition of Townhome Community in Greenville, SC 

Haven Realty Capital (Haven) continues to build its Single-Family Rental (SFR) portfolio closing on the completed first phase of a $30.6 million acquisition of Harrison Landing Townes, a 166-unit purpose-built rental townhome community now under construction in Greenville, SC.  

Harrison Landing Townes is being developed by a national homebuilder on an 18-acre site at 106 McGuires Place in Simpsonville, SC 21 miles SE of downtown Greenville.  Each of the two-story, 1,564-square-foot townhomes feature three-bedrooms, two-and-a-half baths, attached garage, luxury vinyl plank floors, stainless-steel appliances, granite countertops, tile backsplash and nine-foot ceilings on the first floor.   Community amenities include a dog park, playground and walking trail. 

The remaining homes will be acquired in phases from the homebuilder over the next 15 months. The project is expected to be fully stabilized by June 2022. 

Since October 2020, Haven has added 10 Dedicated Rental Communities (DRC) to its expanding portfolio in Georgia, Illinois, North Carolina, and South Carolina totaling approximately 1,000 homes.  The firm plans to increase its pipeline of controlled DRCs from $300 million to $1 billion over the next 24 months, according to Principal and Head of Acquisitions Chris Turritto. 

“We have a robust pipeline of deals, particularly in the Southeast, where we will be buying both single-family detached homes and townhome subdivisions,” said Turitto.  “Our decade of experience in the single-family rental sector, along with Haven’s homebuilding relationships and an institutional investor base with a strong appetite for the asset class, uniquely positions us to build scale over a short period of time.” 

Haven partnered with CenterSquare Investment Management to acquire Harrison Landing Townes.  

“The investment aligns well with our conviction that the single-family rental sector will continue to experience tailwinds and benefit from the favorable demographic trends,” added CenterSquare Vice President of Private Real Estate Chris Picyk.