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2/03/22
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TruAmerica Multifamily has launched a Build-For-Rent (“BFR”) development division to build townhome and single-family rental communities in suburban submarkets. The initial roll-out of TruAmerica’s in-house BFR platform will be in high growth Southwest, Southeast and Texas suburban markets, which represents approximately 60% of the firm’s $16.1 bil multifamily portfolio.
The program will be synergistic with the firm’s existing vertically integrated multifamily platform. Veteran BFR executive Mitch Rotta has joined the firm as Senior Managing Director to lead the new initiative.
“The changing demographics of the U.S., the ongoing affordability-challenges and credit qualification standards of homebuying for Americans has led to a steep decline in home ownership rates, but the desire to live in a home remains high,” says TruAmerica CEO and founder Robert Hart. “BFR is a natural extension of our workforce housing platform because it complements the same demographics that make up our Class B multifamily strategy. It provides yet another housing option for working-class Americans who can’t afford to own a home or would just prefer to rent.”
Rotta has been involved in the burgeoning BFR space for the majority of his career, most recently with Tricor Homes, a leading build-for-rent construction operator and builder. As Director of New Construction and Executive Vice President of Acquisitions he oversaw the entire lifecycle of the firm’s build-for-rent program from land acquisition through vertical construction. Previously, Rotta acted as a consultant to a wide variety of BFR investors and operators assisting them with site planning, design, budgeting, scheduling, equity and debt, and financial modeling.
Rotta will tap his extensive relationships within the build-for-rent industry to assemble TruAmerica’s in-house BFR development team which will include experienced professionals in land acquisition, entitlement and construction.
“We are actively engaged in acquiring entitled land and anticipate closing on several land parcels in North Carolina, Texas and Florida with the intent on starting construction on our first communities by the end of the year,” said Rotta.
TruAmerica will focus on communities with townhomes ranging in size from 1.2k sf to 1.5k sf and single-family homes between 1.8k sf to 2.2k sf with rents affordable to working class American families.
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