Barings, Foulger Pratt Buy Raleigh-Area BTR
With this acquisition, Barings is making its debut in the build-to-rent sector.
A joint venture between Barings and Foulger Pratt have acquired an under-construction 172-unit build-to-rent community located in a Wendell, N.C., a suburb of Raleigh. The partners purchased the uncompleted community for more than $50 million from an undisclosed seller.
Construction is already underway for the yet-to-be-named BTR community, and the first units are expected to be available for lease in the first half of 2024. Barings told Multi-Housing News that the community will be fully complete by the first half of 2026.
The under-development community will be sectioned into 89 townhomes and 83 single-family detached units. The units will include interiors with vinyl plank flooring, stainless steel appliances and quartz countertops, while the community will offer its residents a pool, covered park, dog park, playground, multi-use field, two pocket parks, walking trails, bike lanes and mail kiosks.
The community will be built on a 39-acre site, located roughly 20 miles east of the city center. Residents will have a direct commute into Raleigh and its many attractions, employers and universities via the I-87.
Entering a rapidly growing sector
For Barings, this acquisition in the Raleigh metro represents its first investment into the BTR market. Joe Gorin, head of U.S. real estate equity for Barings, said in prepared remarks that the BTR sector is one of the fastest-growing segments of the housing market and that Barings will look for more opportunities in the segment. Overall, the company has more than $12.5 billion in assets for its U.S. portfolio, which includes a 387-unit community in Greenwood Village, Colo. that recently secured a $65 million refinancing in May.
On the other side of the joint venture, Foulger Pratt is not new to the BTR market. The Wendell community brings its portfolio of BTR properties to 700 homes and approximately $250 million invested across North Carolina and Maryland. Foulger Pratt first entered the North Carolina market with the acquisition of Affinity at Hudson, a recently completed 144-unit community in Gastonia.