Lately, we’ve heard some buzz about single family developers jumping into the multifamily realm. We’ve come across five newcomers we think firms should be keeping an eye on in the coming years. Here is some of the information we collected on these multifamily converts.
1. Arbor Custom Homes
Based out of Beaverton, Oregon Arbor Custom Homes started their journey into multifamily in 2013.
- 206 Apartments is a 203 unit apartment in Hillsboro, Oregon. It was completed in November of 2014. Vacancy in this submarket is around 3.2%.
- Amberglen West Apartments is a 354 unit, 10-building apartment also in Hillsboro, Oregon. It was projected to be completed in September of 2015 and was on the market as early as September of 2014. Unfortunately, we couldn’t find a website up for it yet.
We couldn’t come up with any more prospective properties under development, but that doesn’t mean they don’t have big plans. While their blog hasn’t been updated in awhile they explicitly stated their plans for 2014 were “ to start construction on both multifamily and single family units all in Northern Washington County!” We’ll be on the lookout for more.
2. MBK Homes
Based out of Irvine, California, MBK Homes brought on Craig Jones as Vice President of MultiFamily acquisitions in May 2012.
- Ocean Air is a 100 unit luxury apartment in the style of town homes in the Torrey Hills area of San Diego, California. MBK Homes’ first apartment community opened in October 2014. The occupancy was at 95% in June 2015.
- Palisades at Sierra Del Oro is a 288 unit luxury apartment community in Corona, CA. This was MBK Home’s second apartment which opened in March of 2015. The house and rental vacancy rate in Corona, Ca was 5.26% in 2014.
Metro Gateway is 188 units labeled as “contemporary apartments” in Riverside, CA. MBK’s third project was slated to start construction in June of 2015 and was positioned to be a “transit oriented apartment community”. It’s projected to open late 2016.
3. Lennar Corp
Lennar Corp is a Miami-based company, but they have a Western headquarters in Aliso Viejo, CA and an Eastern headquarters in Charlotte, NC. Although their multifamily division was only founded in 2011, they have been moving aggressively. In 2013 they began investing in construction with a $1 billion pipeline that has already grown to $2 billion.
Since Lennar has been moving so quickly, we will spare you the complete list of all their current properties, but you can find all of ten of them here. Below are two we found info on.
- Skywater at Town Lake is a 388 unit luxury apartment building in Tempe, Arizona. It was finished in June 2015 with their call for offer deadline set to September 15. Tempe (home of Arizona State University) has a high renter percentage at 55.7%, at least partially due to a large undergraduate population, according to nerdwallet.
- Tapestry Naperville is a 298 unit apartment in Naperville, IL built in 2013.Sperling’s best places put houses and apartments in Naperville at 5.77% in 2014.
Their site also hosts their full list of projected properties by state. We can tell you they have committed to a whopping 20, expanding into Colorado and Washington. They are devoted in becoming leaders in more than multifamily development. They also see themselves taking the lead in construction, asset, and property management services.
4. Toll Brothers
Toll Brothers has actually been in multifamily development for more than a decade. They noticed in 2008 and 2009 that their two multifamily properties were doing very well. So in 2011 they decided to push further into apartments.
Again, we only listed two of their current properties below. You can find the complete list here.
- Dulles Greene is an 806 unit apartment community is located in Herdon,VA. This was Toll Brothers’ first venture into multifamily. It opened in 2000 and the vacancy rate for their county has hovered around 5% since 2011.
- Parc Riverside is 287 units of luxury apartments and Toll Brothers’ first project in Washington, DC. It opened April 2015 with Washington vacancy rates floating around the 4% – 5% range.
Toll Brothers currently have four properties under development to be opened in 2016. They will be in various states along the northern east coast. Learn more about these projected properties on the Toll Brothers corporate profile that came out October 1, 2015.
Tricon Capital was just a Canadian based asset management company focused on residential real estate development. They had invested in the multifamily sector before, but last summer they decided to take it a step further. Tricon launched Tricon Luxury Residences and partnered with StreetLights Residential, a developer based in Dallas.
None completed as of Oct. 14, 2015.
Below is information on two properties we could confirm SLR and TLR are partnering on in Texas. We know they also plan on pursuing possibilities in Phoenix and San Diego.
- The McKenzie is 183 units of high rise apartments in Dallas, TX. The 22 story building is situated in the Knox-Henderson neighborhood with construction expected to start in late 2015 and finish in summer of 2017.
- The Michael is a 415 unit apartment under construction in North West Austin, TX. It began construction in January of 2015 with completion anticipated for November 2016.
Next week we’re going to explore what this could mean for the future of multifamily. If you want to follow along sign up for our weekly updates at www.rescour.com