The Resmark Cos. Sells Build-to-Rent Community in California
Parador is a 168-unit property built by Resmark on behalf of one of its managed funds.
The Resmark Cos. has sold Parador, a 168-unit build-to-rent community in Clovis, California. Resmark developed the property on behalf of one of its managed funds, and brought the community to stability in 2020.
The property is a quintessential example of the demand for purpose-built single-family rental communities from both tenants and capital. Resmark signed an average of 19 leases per month at the property, even through the height of the pandemic. Unsurprisingly, that leasing activity translated into robust investor demand when Resmark brought the property to market. The firm’s COO Mitchell Goodman said that there was aggressive bidding activity for the property.
Remark has already invested in the development of more than 1,000 build-to-rent units, and it has a pipeline of 5,000 more units in 20 projects. It isn’t the only investor betting on the asset class, either. In June, GTIS carved announced plans to shift its focus to the build-to-rent space with plans to develop large-scale purpose-built single-family and townhome rental communities, and it hired head of development Gary Davis, new senior director of Acquisitions and Development Bill Mumford and new vice president of Development Kurt Rouse to execute the new strategy. They join director of Acquisitions and Development Teddy Karatz and director of Asset Management Scott Bordogna within the firm’s single-family, build-for-rent platform.
Also in June, New Growth Living, Montgomery Street Partners and Rockpoint Group formed a start-up joint venture to develop build-to-rent single-family communities. It launched with a target of delivering 1,600 BTR homes in the US. Along with the announcement, the company announced its first project, Tanzanite, a Sacramento community with 211 homes.
Resmark’s Parador is an early vision of this investment strategy. The community is a collection of townhomes averaging 1,500 square feet with individual entries, high-end interior finishes and appliances, direct-access garages and large, private outdoor patios.