PTM, Peacock Launch Workforce Platform
The new company has a capitalization of more than $300 million.
PTM Partners and Peacock Capital have launched Inception Housing, an affordable workforce housing platform with a pipeline of nearly 1,600 units and a capitalization north of $300 million.
The new company will concentrate on development across Southeast markets with strong population and job growth, as well as a shortage of attainable housing options. Initial target metros include Miami, Orlando, Fla., and Tampa, Fla.
Notably, Inception Housing will operate without requiring government concessions and subsidies and address the volatile construction costs through a hands-on supply chain approach. The firm expects to eliminate several layers of mark-up through direct negotiations with domestic and foreign suppliers, bypassing traditional distributors and subcontractors.
Inception Housing’s strategy involves the direct procurement of more than 90 percent of construction materials and engagement of its in-house production team to assemble the framing of the cold-formed steel building projects.
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This vertically integrated model expedites the development’s time-to-market and reduces overall construction costs, allowing for tighter spreads and jumpstarting a faster cash flow. With strong leverage, the net operating income optimization can be done through softer rents, opening the doors for residents earning between 80 and 120 percent of the area median income.
Inception Housing has already broken ground on a 74-unit project, dubbed Magnolia Flats, in South Orlando. Construction start is imminent on another project, Spring Lake in Winter Haven, Fla., that’s set to encompass 168 apartments.
PTM Partners and Peacock Capital’s track record
PTM Partners’ experience stems from its Opportunity Zone developments, with the firm raising and investing more than $400 million in QOZ equity. Overall, the company has more than $3 billion in active developments and investments in multifamily and mixed-use projects, including the two towers at 1900 and 2000 Biscayne in Miami, developed in a joint venture with Kushner Cos.
Peacock Capital owns more than 2,300 apartments inside Central Florida’s “Golden Triangle”, the area spanning Orlando, Tampa and Gainesville, Fla. Outside of ground-up developments, the company also engages in acquisitions and renovations.
