More than what the traditional housing market has to offer

Creating BTR Communities for the Workforce

Despite surging costs, some developers are focusing their strategy on the missing middle.

Sep 06, 2024By Jordan Mann Multi-Housing News

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Today’s economic realities make it especially challenging for built-to-rent home developers looking to build a no-frills product for the cost-conscious renter. We’re talking about communities that appeal to moderate-income renters but don’t qualify for Low-Income Housing Tax Credits or other incentives. The market exists, but so do the challenges.

The BTR and SFR markets are still going strong. A recent study from the National Association of Home Builders shows that, in the past four years alone, single-family rentals have doubled their share of new housing starts—from representing 4 percent of new starts in 2020 to 8 percent this year.

Jacque Petroulakis, chief communications officer for NexMetro, pointed to the growth of the SFR market as a sign of things to come in neighborhoods that have strong demand drivers such as solid job and household income growth and high occupancy rates.

Multi-Housing News found some developers who are crunching the numbers to make the SFR concept work for a broader swath of the renter community. Here are some of their cost-saving strategies.

Geographic diversity spreads costs
With properties across four states, NexMetro’s Avilla Homes flag lets the company distribute risk across multiple growth markets. This keeps rental costs manageable across the whole portfolio. But Petroulakis acknowledged that risk is always a factor.

“Finding those locations isn’t accidental,” she said. “It’s the product of conducting considerable demographic and demand analysis to determine the best metro areas and submarkets in which to build. We are disciplined in our underwriting and use long-term average, not current trends. Using those metrics, we know over the long haul that our properties will be successful.”

Taking advantage of economies of scale
According to the NAHB, the cost of construction materials has increased by 12 percent since 2016, and while increases have leveled off since 2023, they show no signs of dropping. Fortunately, developers and builders have found ways to leverage the economies of scale required to build SFR communities in a way that mitigates and manages costs.

John Daher, vice president of development and construction at American Realty Advisors, stressed the value of maximizing site utilization through design and standardization of floor plans and finishes to reduce material costs, allow for more efficient production, lower carry costs, reduce delivery times and simplify the construction process.

He also noted the value of effective use of prefabricated elements. “Using prefabrication of key elements such as roof trusses, flooring systems and wall panels can significantly reduce total project time while still producing quality houses,” according to Daher.

His colleague, Patrick Lataitis, senior director of investment at ARA, noted that the cost of materials goes hand in hand with how they are ordered and used by subcontractors.

“Material and other costs can be managed thorough careful construction monitoring throughout development, value engineering, as well as potentially early buy-out of certain critical materials,” Lataitis said. “Also, financing costs can be managed via a competitive lender bidding process that should result in the best loan economics.”

Labor relations matter
Another major driver for construction costs is labor availability. As the demand for skilled construction labor increases, contractors and subcontractors are spread thin. But developing relationships with subcontractors across the entire process can improve the bottom line.

“In our experience, roughly 80 percent of new construction costs are attributable to subcontractors,” Lataitis said. “Involving key subcontractors—along with the general contractor—in the design and preconstruction process for value engineering suggestions and constructability review can usually save costs, cause less requests for information and time delays for unanswered design questions.”

Strong relationships for building SFR homes don’t just streamline construction costs and lower overhead costs such as management, maintenance and upkeep, they also create opportunities for future projects, noted Jordan Kavana, CEO of ARK Homes.

Niche with a future
The demand for moderately-priced rental houses is likely to have a long runway for developers, considering renting a starter home is now more affordable than buying across the country’s 50 largest metro areas, a recent Realtor.com report shows. On average, owning came with a 61 percent premium as of July.

“With renting you know your monthly payment,” Kavana said. “You only have to come up with a security deposit, and home maintenance is included, and you are most likely moving into a new home with added space and a yard.”

But, according to Petroulakis, the convenience and amenities of SFR are as appealing as the price. “This is a lifestyle choice, not a trend,” she said. “People will continue to want freedom, privacy, and flexibility in the future more than ever before.”

$2B Phoenix Project Lands CHIPS Act Funding

Amkor Technologies is building the largest facility of its kind in the U.S.

Aug 01, 2024by Richard Berger Commercial Property Executive

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Semiconductor company Amkor Technology has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive proposed funding as part of the CHIPS and Science Act. Terms include up to $400 million in proposed direct funding and access to $200 million in proposed loans.

The provider of semiconductor packaging and test services announced in November 2023 its plans to build its first domestic OSAT (outsourced semiconductor assembly and test) facility in Peoria, Ariz. The city approved the Phoenix-area project earlier this year.

Amkor expects to invest approximately $2 billion and employ approximately 2,000 people at the new facility. Upon completion, this will be the largest outsourced advanced packaging and test facility in the U.S.

Amkor secured some 55 acres for the manufacturing campus, which will include more than 500,000 square feet of clean room space. The first phase of the facility targets production within three years.

President Biden signed the CHIPS Act into law on Aug. 9, 2022—creating a $52 billion investment to revitalize America’s domestic semiconductor industry and strengthen the country’s economic and national security. So far, $30 billion in funds have been issued.

Phoenix, a semiconductor epicenter
Phoenix is one of the country’s largest epicenters of the booming field, while the industry itself is transformative for the U.S. economy and one of the country’s main economic pillars looking forward.

In April, Taiwan Semiconductor Manufacturing Co. also announced it signed a preliminary memorandum to receive significant CHIPS and Science Act funding for what would be the largest-ever direct foreign investment in a U.S. greenfield development.

In March, Intel also signed a preliminary memorandum of terms for up to $8.5 billion. Proceeds are aimed at semiconductor project development and expansion in Arizona, New Mexico, Ohio and Oregon.

Bob Hess, vice chairman of global strategy at Newmark, told Commercial Property Executive that Phoenix has firmly established itself as a top-tier metro for advanced manufacturing and semiconductors.

“The region has sustained attraction of California companies, underpinned by a favorable business climate and a proactive approach to investment and infrastructure development,” Hess mentioned.

“What sets Phoenix apart is the collaboration between business executives, local governments and state agencies. True public-private sector partnerships that meet regularly.” He added that leaders such as Chris Camacho of the Greater Phoenix Economic Council and Sandra Watson of the Arizona Commerce Authority have been instrumental in strategic planning.

Just recently, the U.S. Department of Commerce and National Science Foundation announced a partnership to advance semiconductor workforce development, which will be critical to ensuring a strong and sustainable talent pool to further drive economic growth.

“As Phoenix continues to grow, the housing market becomes a critical factor in site selection for companies,” Hess reasoned.

“The city has done well to manage challenges related to water, zoning and growth. However, there’s a need for more condos, apartments and multifamily housing to meet demand. Engaging with developers and industry leaders is essential to keep pace.”

“The expansion of companies like Amkor highlights the importance of workforce development, including addressing issues like childcare to support a diverse workforce. Arizona’s leaders, working with national think tanks and workforce committees, are looking outward for best practices to prepare for the future needs of the semiconductor industry.”

Phoenix investment from other industry players
John Leddy, managing director in the tech division with JLL Work Dynamics, told CPE that according to the Semiconductor Industry Association, major projects in the Phoenix area increasing semiconductor manufacturing capabilities total more than $100 billion.

“Those investments are expected to create over 11,500 skilled workforce jobs at those sites and require roughly 25,000 construction and skilled trade jobs to complete these projects,” Leddy summed up.

“Arizona is one of 12 states that have created or expanded upon existing tax incentives to attract private sector investment toward semiconductors. Arizona’s statewide incentives include funding for semiconductor infrastructure, workforce and research capabilities.”

Rusty Martin, Graycor general manager with the Southwest division, told CPE that the significant investments from companies such as Intel, Amcor and TSMC have led to additional investments from their suppliers and other businesses operating within the industry.

“Phoenix offers ample available land, a strategic location, robust infrastructure, a competitive cost of living, and a business-friendly environment, making it an attractive location for companies looking to establish a presence,” Martin added.

The Phoenix market has transitioned over the past two decades into a diverse economy with large companies in tech and manufacturing relocating to the valley, according to Cory Sposi, vice president of sales & leasing at Commercial Properties Inc./CORFAC International.

“Plans that were put in place here decades ago in higher education and infrastructure, as well as keeping our core business-friendly values, allowed us to be a top choice for the future of domestic manufacturing and technology,” Sposi said.

The Phoenix industrial market also continues to remain one the nation’s frontrunners for small to mid-bay leasing activity, according to Morgan Hill, vice president of acquisitions at Stos Partners.

He told CPE that tenant demand for warehouse space continues to be fueled by 3PLs and construction-related occupiers, while significant growth continues in the advanced manufacturing and semiconductor chip-related industries.

“The market has experienced a recent surge in manufacturing with over $60 billion in private investments in the semiconductor, battery production, and energy storage sectors,” Hill mentioned. “Even with the significant construction pipeline, Stos Partners remains bullish on the Phoenix industrial market for functional, well-located industrial product.”

Multifamily and single-family also get a boost
Amkor’s major investment and the addition of 2,000 jobs in Peoria is expected to significantly boost the Phoenix economy, fueling demand for rental housing, according to Jeff Seaman, senior managing director at JLL Phoenix, who specializes in multi-housing.

“Multifamily owners can anticipate increased asset values and occupancy rates, creating a more robust and appealing investment landscape,” Seaman said.

“NexMetro has strategically invested in developing luxury leased home neighborhoods in the Northwest Valley because of the significant manufacturing company presence and investment in the region,” added Jacque Petroulakis, chief communications officer for NexMetro. “This industry creates high-wage jobs, and these homes are attractive to those who want the lifestyle of a detached home with a private yard, but don’t want to purchase a home at this point in their lives.”

Trends Watch: Investing in Build-to-Rent Housing Communities

Jul 25, 2024Elana Margulies-Snyderman EisnerAmper.com

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EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.

This week, Elana talks with Greg Fedorinchik, Managing Director of Equity Capital Markets, NexMetro Communities.

What is your outlook for investing in build-to-rent housing communities?
There are four driving factors today. First, there is a secular tailwind of growing consumer demand for a luxury leased new home neighborhood lifestyle – particularly among Gen Z professionals, millennials, and -- increasingly -- retirees. Second, there has been a considerable dip in new multi-family project starts since 2022. That will mean less supply of quality housing when we look out two-to-three years. Third, housing affordability challenges continue to be a problem, with monthly costs often more than $1,000 higher to own a home versus rent. And last, there’s tremendous runway in build-to-rent (“BTR”) because it offers a combination of affordability and a new home lifestyle to people who have the wherewithal to buy, but are choosing to rent. Multifamily has a long history of recession-resistance and performance, and this is magnified by the unmistakable appeal of a no-shared walls single family rental home neighborhood experience.

Where do you see the greatest opportunities and why?
We see the greatest opportunity in submarkets of major metros with strong demand drivers of job growth, household incomes, etc. These consumers are willing to pay higher rents for the privacy and lifestyle they can’t get with a traditional apartment. Our primary resident demographics range from professional millennials to people in a life transition (like divorce) and baby boomers/retirees. A growing segment is also adults 55+, which recently have made up about 2/3 of rental housing growth. This segment represents about 1/3 of our residents and is growing today.

What are the greatest challenges you face and why?
It’s said that wealth is made during down cycles and harvested during upcycles. Today, we think that is a particularly poignant insight. Higher interest rates, higher construction costs, and tighter financing standards are making business execution far more important. The environment has deterred many companies that are inexperienced in the BTR sector. We factor these escalations into our project projections, and it is requiring us perhaps to do fewer projects and be much more selective to achieve our return objectives. That said, we are still finding some great locations that we are confident will perform well and offer great opportunities.

What keeps you up at night?
Being focused on the long-term while navigating short-term market challenges is always a challenge. We are being more selective and doubling down on the depth of our underwriting, but at the same time we need to grow our talent and maintain our strong company culture as we grow. Keeping myself and my team focused on the long-term sometimes keeps me up.

Another challenge we sometimes face is nimbyism. In certain parts of the world, there is a misconception that there is too much housing, and a resistance to adding rental housing stock. If you look deeper, all studies agree we don’t have enough rental or for-sale housing supply in the market. We need broader recognition of this housing shortage and supportive policy and infrastructure to meet the growing need.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.

NexMetro’s Build-to-Rent Communities Capture Growing Market Share

Jun 28, 2024The Real Deal BrandStudio

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As renting a home becomes a lifestyle choice among many Americans, NexMetro is building communities to fill this growing demand.

Over the past 12 years, the developer has more than 9,500 of its cottage-style Avilla Homes built or under construction in major metros across the Sun Belt. Now, this build-to-rent (BTR) pioneer is launching a NexMetro Direct Access Fund investment opportunity aimed at supporting its active development pipeline. TRD sat down with Greg Fedorinchik, Managing Director Equity Capital Markets at NexMetro, and Josh Hartmann, NexMetro CEO, to learn about the developer’s roots and why now is a great time to invest in build-to-rent communities.

Q&A with Greg Fedorinchik, Managing Director, NexMetro

Greg talks about investing in build-to-rent, trends in the private investor and institutional channels, and principles for raising and retaining assets.

Apr 24, 2024By Ed Rowley, The Fund Marketer

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Greg Fedorinchik oversees equity capital markets and investor relations at NexMetro Communities. NextMetro is a developer of leased home communities featuring luxury single-story detached homes. Since 2012, the firm has raised nearly $500M in equity on a project basis. Greg joined NexMetro in 2023 and has been expanding the firm’s access to equity and debt capital by developing commingled vehicles.

Greg previously held long-term senior management roles at Brinson Partners (acquired by UBS) and Mesirow Financial, along with consulting and interim roles at investment firms. Greg’s experience includes leading portfolio management, strategy, product development and distribution, covering institutional, intermediary and HNW channels globally.

Greg, we appreciate you sharing your insights. Tell us about your firm and the investment strategies you offer.
NexMetro Communities is a ground up developer of Avilla Homes Communities. We’ve actively developed housing communities since 2010, and incorporated the business in 2012, making us a leader and pioneer in the build-to-rent multifamily space.

We have 67 employees and have completed or are in-development across 55 developments and almost 10,000 homes. We’ve deployed about $2.5B in total capital to our projects. We’ve historically financed our projects on a project-by-project basis and the 20 projects we have exited delivered investors on average a 24% net IRR.

Avilla Homes communities are “cottage-style” build-to-rent communities – think of them as Class-A multifamily starter homes. Communities are typically between 150-250 homes built on 15 to 30 acres adjacent to fast growing cities – mostly in the sunbelt.

We build one-bedroom, two-bedroom and three-bedroom detached homes. Communities feature gated access, resort style pools and other amenities, like pickleball courts, dog parks, and walking paths. Homes feature private entrances, high ceilings, high-end finishes, no shared walls, and private enclosed back yards.

Our communities cater in large part to professional Gen Z, Millennials and over-55s that are looking for a high quality and low maintenance lifestyle. All maintenance, down to the changing of lightbulbs, is fully included in rent.

We now offer investors the opportunity to invest in the development of these communities through a dedicated fund: The NexMetro Direct Access Fund 2024. The fund is targeting a return of 15%+, underwriting projects that we believe can generate a 15-20% return to the fund.

What are some of the main things you’re focusing on right now?
Our fund just launched at the end of March, so that is taking up a lot of my team’s focus, time and energy. We have raised about $45M already in just a couple of weeks – with a target of $75-100M total equity.

Our development team has a strong pipeline of land and project deals. Given how multi-family housing starts have declined, we are eager to get as many projects in the ground this year as we can, because we think the competition will be very low when we look out to completion in about two years.

We are also working on the design and launch of a new debt fund to help us finance our projects. I am really excited about that. It will have a two-year lock and pay a spread to two-year treasuries. I think that’s novel and I think it is what many investors are really looking for.

What kinds of trends or opportunities are you seeing among investor segments or fund types?
The most interesting observation I have is that among our HNW, UHNW and family office investors, there is a stark and quickly increasing demand for yield. This is in large part because that investor segment is aging and looking for more current coupon yield as opposed to investing in long-dated private equity and other types of funds.

The other thing I would note is that investors are still being cautious, waiting for clearer economic and market signals – particularly with respect to interest rates. There is a lot of dry powder. That said, we really think there will be a first mover advantage to people that deploy capital into interesting ideas today. If you wait too long, the train may, as they say, “leave the station.”

What’s one of the biggest challenges related to marketing or sales that you wish you could solve?
I think prospective investors, especially institutions but also family offices and UHNW investors are simply inundated with marketing offers from investment firms. There is so much noise in the marketplace from investment firms, crowd-funding platforms, etc. It is really hard to stand out and it is really hard to curate opportunities and match them to investor interest. Wouldn’t it be nice if there was a better way to match investors to high quality providers?

I would be remiss if I didn’t note something about the AI revolution. The technology is really powerful and we are only starting to scratch the surface on how to best apply it on both sides of our firm – i.e. how do we use AI to make better investment decisions and how do we use AI to help us find investors that want to access what we do?

In terms of reaching new investors, what methods are working best?
Referrals, referrals, referrals. Really this is always the best way to find and acquire new clients. We are a pretty small firm – deploying $100-150M in equity capital annually, so in the past we’ve really relied on family, friends, owners, board members, and employees to refer people in their networks. As we grow, we want to get to annual deployment of $250-300M of capital. That is going to require more and larger investors.

Finding more and larger investors will have us focusing on family offices and RIAs and using some niche data providers, cap-intro events and conferences that focus on our target segments. There are some great networks out there if you can tap into them – networks of UHNW, family office and RIA investors looking for interesting private investments.

What kinds of products/tools/services do you find to be valuable?
Databases are a great place to start. In my opinion there are three or four that are really great. I’d highlight two: for managers looking to penetrate the institutional channel which is highly consultant intermediated – the IC Research Institute is the best tool out there. If you are working in that channel and aren’t using it, you are at a disadvantage. I can provide people with referrals and demos. I can’t say enough about how good it is. The other is Dakota Marketplace. I have been a client of theirs in the past and think they are doing a great job further developing their reach among platforms, family offices and RIAs.

Outside of these databases, I think there are some great institutional, RIA and family-office focused conferences and forums out there, but really too many to name. You have to find ones that have the types of investors you are looking for and in the right areas of investment focus.

What’s one of the most important things you’ve learned during your time in the industry?
I worked for long periods at two really great firms: Brinson Partners, which later became part of UBS, and Mesirow Advanced Strategies. The most salient lesson I learned at both places is that a firm with a true focus on clients, with a client-centric culture, will always be more successful.

Virtually all firms say they are client centric, but most firms don’t have what it takes to live client-centricity. You absolutely have to focus on understanding clients and on being true stewards of their capital – that is treating client capital with the same standard of care you do your own, and probably an even higher standard.

Where you see this manifest itself most clearly in organizations is through leadership that is always asking people – do you feel so confident in this decision that you’d put a substantial portion of your own money into it? What could go wrong? What will clients say if it does go wrong? What steps are we taking to avoid the bad outcomes?

You have to take risk, don’t get me wrong, but you’d better know what that risk is. Maybe it goes without saying, but aligning incentives is critical to fostering that kind of culture. I think great firms make clients the center of everything they do – both in terms of client service and investing.

What trend or change do you see happening now?
Among institutional investors, I think there is a clear trend to insourcing and specialization. And that is working its way down to smaller institutions too. In effect, institutional investors are getting more sophisticated. That is a long-term trend. That requires better and smarter marketing content for investment firms. You have to help those specialists learn, analyze and make better decisions.

On the HNW side, I alluded to the major change I see already. The baby boomers are a concentrated pocket of wealth with rapidly changing needs. The youngest boomers are now 60 and the older boomers are closing in on 80. A person’s needs, goals, risk tolerance and desired investment attributes change a lot in that part of their life. I think investment firms are behind the eight ball in recognizing how seismic that shift is and responding to it creatively.

Further, wealth is being transitioned from boomers to Gen Z and millennial investors with a differing set of beliefs and views – but that’s a whole issue unto itself.

NexMetro targets opportunistic BTR projects with new HNW fund

Apr 17, 2024Susan Barreto Alternatives Watch

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New trends in real estate meet high-net-worth investors’ need for alpha in a new fund recently launched by NexMetro Communities, a real estate developer of high-end multi-family build-to-rent communities.

The firm is offering a “niche that is needed and in high demand,” said Greg Fedorinchik, managing director of equity capital markets at NexMetro.

Fedorinchik recently made the switch to the real estate asset class after decades in the hedge fund industry, most recently at Chicago-based fund of hedge fund businesses Evanston Capital and Mesirow. Now he has been learning about the capital-intensive industry that requires years from inception, financing, construction to occupancy.

The NexMetro Direct Access Fund 2024 was launched in recent weeks with roughly $40 million and the team is targeting $75-$100 million that will be invested across multiple projects with a low investment minimum of $250,000.

The investment focus is on the fastest-growing metro areas with developments in Arizona, Colorado, Texas, Georgia, Florida and South Carolina. The geography is reflective of the migration trends in the U.S. and areas where the shortage of housing is acute. And the Phoenix-based firm relies on data-driven analysis on both macro and micro market trends.

The case for Build-to-Rent
After offering pooled investments on specific projects over the years, the move to offer a dedicated fund is distinct, but comes at a time when the need for housing is greater than the development underway. Fedorinchik said that in his research prior to joining the firm, he found reported shortage of three to five million units nationwide. The housing shortage is greatest among millennials and Gen Z and interestingly in the over 55 set eager to explore new rental opportunities in the Sunbelt.

The post-COVID migration to the Sunbelt is one trend, but the problem of higher down payments is another as is the fact that in some metro areas mortgage payments are $1,000 per month higher than rent. For developers, the issue of increased financing costs has complicated local markets as development is stalled, according to Fedorinchik.

For NexMetro, there has been a growing opportunity set to step in if a project is stalled and help push it across the finish line.

“Rent is going to grow, due to housing affordability being where it is,” Fedorinchik added.

NexMetro typically achieves 7-17% rent premiums over traditional multi-family developments, likely because they offer resort style amenities in what they call “cottage-style multi-family” communities. These one-to-three-bedroom rentals offer high ceilings and amenities such as pickle ball courts.

The geographically diverse fund is targeting a five-year lifespan with a 15-20% IRR to fund, and 1.6x to 2.0x multiples.

The strongest case for Fedorinchik’s entrance into a new asset class may be historical rental statistics. He noted that nationally rents have risen 3.9% on an annualized since the end of WWII. And more enticing yet, rents have never decreased over any three-year period. And those are some numbers the team at NexMetro thinks it can build on.

Chief Communications Officer Jacque Petroulakis Featured in Phoenix Business Journal's 2024 People on the Move

Mar 07, 2024Phoenix Business Journal

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Jacque Petroulakis has been promoted to Chief Communications Officer at NexMetro. She is an essential partner in corporate communications, marketing initiatives, and brand strategy. Starting in investor relations, Jacque has been with NexMetro for seven years and brings a wealth of experience spanning over 30 years. Her insights and expertise are vital in driving NexMetro's strategy forward as the company has grown from a single market in Phoenix to servicing six markets nationwide. Representing NexMetro as the proven leader in the space, Jacque has served as a BTR industry expert and influencer while embodying the values that define NexMetro. She has set the tone for company culture by aligning her actions with the mission, vision, and core principals of the company, and supports its positive work environment by fostering collaboration, driving innovation, leading by example, supporting diversity initiatives, and empowering the team to contribute to the company’s long-term success.

Education
University of Arizona (Tucson, AZ)
Bachelor's degree

Build-To-Rent Development Forecast: New Supply To Fall Short Of Demand This Year

Jan 24, 2024By Brad Hunter, Forbes

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The blazing-hot pace of construction in the build-to-rent (”BTR”) segment of housing is slowing down sharply. But it is not for a lack of demand from consumers. Rather, the slowdown is a reflection of a “capital crunch” for new construction.

Shortly after interest rates started rising sharply in 2022, the amount of capital seeking BTR deals was drastically reduced. The debt side worsened before the equity side; the harbinger was the failure of Silicon Valley Bank and Signature Bank. Banks’ earnings experienced sudden increases in funding costs, and profitability pressures mounted amid the Fed’s tightening of monetary policy. Less profit and lower deposits meant less “excess reserves,” which in turn meant less money available to loan. Since then, the equity component has also been more limited, but the most common descriptor of the equity’s stance is “selective.” That is a euphemism for “some deals that worked on paper last year don’t pencil out this year.”

Meanwhile, the demand for these communities remains strong. Young householders who want a single-family lifestyle, but amid mortgage rates are more than ever forced to look for a rental. Up until a few years ago, the only rental options were apartments, or the one-off single-family rental home. Now, with the newly-emerging BTR trend, these households also have the option of renting within a cohesive, purpose-built, professionally-managed BTR community. And for the past ten years, they have been filling up as fast as they could be built.

NexMetro, Mosaic Break Ground on Austin-Area Community

The project is expected to be online by summer 2025.

Sep 20, 2023By Jackson Chen, Multi-Housing News

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NexMetro Communities and Mosaic have begun construction on a 224-unit apartment project in the Austin suburbs. Avilla Berry Creek will be located in Georgetown, Texas, and is expected to be online in summer 2025.

The cottage-style apartment community will offer one-, two- and three-bedroom units ranging from 690 to 1,265 square feet. The apartments will be built with private backyards and front patios, while the community’s amenities will include a pool, clubhouse, community garden, dog park and open space areas.

Located at 1101 Bch Way in Georgetown, Avilla Berry Creek will be near Interstate 35, providing for an approximately 35-minute commute to Austin. Residents will also be less than 10 miles away from Georgetown’s central business district, which offers several restaurant and retail options.

Kyle AuBuchon, managing director at Mosaic, said in prepared remarks that Austin has been seeing two percent year-over-year population growth over the last decade, but residential development has not kept up with that pace. Meanwhile, he noted, people are being priced out of buying homes due to increasing interest rates.

Staying active in Arizona
While NexMetro and Mosaic have worked together in the past, Avilla Berry Creek represents the first project in the Austin metro for both companies. NexMetro and Mosaic previously partnered to develop Avilla Palomino, a 197-unit build-to-rent community in Glendale, Ariz. Construction on that project began in August, with plans to deliver in summer 2024.

Mosaic has been active in the Arizona multifamily market and has worked with other partners on its residential projects. In December 2022, Mosaic partnered with Atlantic Jasper and broke ground on The Flats at Jasper, a 240-unit build-to-rent project in Prescott Valley, Ariz. Earlier this year, Mosaic and its development partner Family Development started preleasing for Town Germann, a 209-unit luxury townhouse community in Gilbert, Ariz.

NexMetro's EVP, Marketing & Investor Relations Promotes "Fill An Avilla" Community Water Drive on Telemundo.

Sep 07, 2023Telemundo Noticiero Arizona

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NexMetro Communities Executive VP, Marketing and Investor Relations Jacque Petroulakis recently gave a live, on-camera interview with Telemundo's Paola Morales on the Noticiero Arizona television show to promote the "Fill An Avilla" Community Water Drive to our Spanish-speaking community. The water drive, which ran from August 7-September 7, benefits St. Mary's Food Bank in their efforts to distribute more than 1 million water bottles at emergency hydration centers throughout the Valley.