Material Capital Breaks Ground on Kansas BTR Community

Material Capital Partners and institutional investment partner Bluerock have started construction on Harmony at Clear Creek, a 188-unit build-to-rent community in Shawnee, Kan. Development commenced after the joint venture landed $77.8 million in construction financing from Bank OZK.

The first units are expected to deliver in October of next year. Winchester Commercial Group is leading construction on the project, which is expected to be fully online by February 2028.

At full build-out, Harmony at Clear Creek will occupy 40 acres outside of Kansas City. Units will include a mix of three- and four-bedroom options ranging from 1,600 to 2,400 square feet. Homes will include two-car garages, patios, fenced backyards and mudrooms. Community amenities will include clubhouse, fitness center, pool, dog park, pet spa and walking trails.

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Harmony at Clear Creek is taking shape on Silverheel Street in Shawnee, about 18 miles outside downtown Kansas City. The site is located just off Kansas Route 7 and is also within 10 miles of Interstate 35, which provides access to the city.

BTR market cools off slightly

Single-family rent prices in July increased 2.3 percent year-over-year, less than the 3.1 percent average increase recorded last year, according to a report from Cotality. The monthly growth rate for the sector was 0.2 percent, below the historical July average of 0.7 percent.

Still, developers continue to invest in BTR as more and more renters turn to the sector instead of buying homes.

Harmony at Clear Creek is the final investment in Material Capital Partners’ first BTR Development Fund, which includes other developments like River Ford, a 170-unit BTR community in Brunswick, Ga. The firm has also started developing projects through BTR Development Fund 2, beginning with a 163-unit development called Mill Landing in Greer, S.C.