GTIS’ New BTR Unit Debuts 1st Property
The firm is developing projects in the Phoenix area, as well as southern Florida.
Real estate firm GTIS Partners has launched Tavalo, a dedicated company specializing in build-to-rent community development. The subsidiary has unveiled its first property and is planning eight more, which will total upwards of 2,100 units.
Tavalo at Cadence, in Mesa, Ariz., features a total of 197 BTR units. Among its amenities is a fully equipped fitness center with a yoga studio. The firm is planning other properties in the Phoenix area, as well as in southern Florida.
“Having invested in the single-family rental sector since 2012, we’ve seen quite an evolution of the sector as it attracted institutional capital, and seen a number of BTR projects get developed,” Teddy Karatz, managing director of U.S. acquisitions at GTIS Partners, told Multi-Housing News. “We feel there is a great opportunity today to leverage our residential investment experience, which spans housing markets across the country, and (to) design and develop BTR communities that focus on design, amenities and customer service to meet the demands of customers who will have more choice going forward and can be more selective.”
GTIS cleared a several hurdles in launching Tavalo, said Karatz. “We spend a good amount of time working directly with the municipalities to present our vision for each portfolio site,” he noted, adding that the company must “balance designing a project [that] can ultimately get approved with one that drives efficiencies across densities, and [balance] development costs while meeting the design guidelines of our company.”
Early in the process, GTIS established acquisition criteria and company design guidelines that shape its focus. Officials at the firm believed it was essential to adopt the design principles of successful institutional multifamily properties and merge them with the ability to target projects that can accommodate a minimum of 150 units, and often more than 200 units.
This, Karatz said, allows Tavalo “to offer onsite leasing and maintenance and vast amenities, which we feel is critical as the strategy matures.”