Eleven Oaks: BTR Boom in Southeast Suburban Market
BTR is a shorthand industry term for build-to-rent which involves newly built townhouses or single-family homes intentionally constructed to rent to prospective tenants. Oftentimes, these rental home communities offer residents apartment-adjacent amenities like maintenance-free living with the addition of generous outdoor spaces. Quinn as well as other builders in the same game have proactively responded to the BTR boom, as homeownership in the country is currently below 66% and is expected to momentously decline over the next 20 years.
Renting in general has shown a significant spike, but not specifically for BTR projects. Despite the marketplace, basal temperature reading, Quinn Residences, a privately held real estate operating company focused on acquiring, developing, and operating single-family rental homes in the southeastern region, pursued a $12,000,000 loan for the construction of a 69-unit build-to-rent community in the an up and coming suburb of Orlando. Quinn Residences raised close to $900 million for deployment into BTR and has gotten its name out there as an influential group in the southeast residential rental space.
With increasing growth in Orlando and much of the Southeast, reserving suburban spaces for new construction single-family rental homes aligns well with the BTR market trend. The gap between active construction and potential construction could tip the scales back in balance for BTR communities attracting significant interest and capital investment for renters experiencing high rent in more metropolitan areas. Back in June 2021, the Wall Street Journal quoted from Hunter Housing Economics stated that 6% of the homes currently being built in the U.S. are BTRs, and will likely double output by 2024. As renters stomach increasing rent prices in cities, finding new-build suburban options with more amenities, outdoor space, plus the added flexibility of renting is a significantly more palatable solution. Both parties benefit: builders can proactively produce viable units in a low inventory market and renters are slated to gain newer, larger living spaces in well-landscaped areas that agree with hybrid commutes and active lifestyles.
Proximity is a strong point for this master-planned community being within 1 mile from the Florida State Road 44 & East Orange Avenue interchange, 28 miles from the downtown district of Orlando, and 25 miles from the Orlando Stanford International Airport. Located in Eustis, FL. this particular BTR community spans 69 development units over 14.7 acres with 32 stand-alone townhomes and 34 townhomes separated into six buildings. Additionally, the property sits less than half a mile northwest of Lake Joanna, providing residents with some green recreational space to explore nearby. BTR master-planned communities like Eleven Oaks are just the beginning phases of development in similar high-growth areas around the Southeast U.S., with other hubs in Pheonix, the Carolina,s, and Georgia as prime areas to continue this rental housing trend.
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