NewStar Eyes Atlanta-Area BTR Project
The first homes are slated for completion in the spring of 2026.
NewStar intends to develop a 133-unit build-to-rent community in Braselton, Ga., a suburb of Atlanta. The developer partnered with Red Cedar Homes, a North Carolina-based homebuilder, to bring the project to fruition. The construction phase will begin this quarter, with the first units slated for completion in the spring of 2026.
First Carolina Bank issued construction financing in a deal arranged by Patterson Real Estate Advisory Group. The brokerage firm also assisted in setting up the joint venture equity funds.
NewStar recently purchased the 19-acre site, located about 45 miles northeast of downtown Atlanta. Interstate 85 runs through Braselton, providing access to the greater metro area.
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The unit mix will comprise three- and four-bedroom floorplans. Homes will have fenced-in backyards and either two- or one-car garages, among other amenities.
NewStar bullish on Sun Belt BTR projects
Founded in 2021, NewStar develops BTR properties in suburban Sun Belt markets with strong job and population growth trends. The company’s footprint comprises roughly 1,000 lots and rental homes in various stages of development.
The firm is mostly active in Charlotte, N.C., where it is currently developing nine BTR projects, as well as Atlanta and Florida. NewStar collaborated with Red Cedar Homes for a significant portion of their projects.
The firm’s partnership with Red Cedar mirrors wider national trends whereby investors team up with homebuilders to strengthen their position within the BTR sector. Recent examples include Taylor Morrison and Kennedy Lewis’ $3 billion BTR partnership, as well as the creation of Laseter Development Group by J.P. Morgan, Georgia Capital and Paran Homes.
Metro Atlanta’s BTR deliveries to drop by half
As renting continues to be a more affordable option compared to owning a home across most markets, BTR development remains an attractive investor opportunity. As of 2024, renting a house saved residents an average of $608 each month throughout Greater Atlanta, according to a Yardi Research Bulletin.
Roughly 1,100 rental homes came online across the market year-to-date as of July, Yardi Matrix data shows. Should market conditions hold, the data provider expects completions to reach 1,770 by year’s end, a figure 46.1 percent smaller than the one recorded in 2024. The metro still had approximately 4,800 rental homes under construction in July.
