Single-Family Rental Homes Receive $2.5B Boost
Global City Development and Leste plan to deliver 10,000 homes nationwide through a new platform.
Real estate developer Global City Development has teamed up with alternative investment firm Leste on a $2.5 billion housing platform that aims to deliver 10,000 single-family rental homes across the U.S., marking a milestone deal for the emerging niche asset class.
The newly launched initiative will develop single-family homes and townhouses in about 30 communities throughout Washington, D.C., the Southeast and Texas over the next five to seven years. The platform, called Cassa Life, will be led by real estate veteran Adam Adler, who most recently served as a senior executive with developer Terra Group.
Targeting the prime renter group of 25- to 44-year-olds, each community will feature 200 to 500 homes, with units ranging in size from 1,200 to 2,000 square feet. The communities will be highly amenitized and tech-enabled, offering programming similar to what is found in co-living and student housing residences, according to a statement.
Sites in the bag
For the initial phase of the project, the partners have already acquired two sites in the Raleigh-Durham area of North Carolina and Nashville, Tenn., with enough acreage for about 900 homes and townhomes. Construction is expected to begin in the first quarter of 2020. A representative of the team declined to identify the properties to Multi-Housing News, citing confidentiality.
The platform will cater to a target demographic that is projected to see net growth of 2.5 million renters over the next five years. Global City Development Principal Brian Pearl said in a statement that the new housing would provide single-family living without the costs and commitment traditional home ownership.
In October, Global City Development, along with partners RER Ventures and Podium Development, launched leasing at The One At University City, an 886-unit student housing community catering to Florida International University in Miami.