THE BUILD-OUT: Build-to-rent is a trend with legs

New single-family rental homes fuel latest First Coast building boom

B2R, BtR, BFR … however it’s being called, the “build-to-rent” trend for new single-family homes is sprouting legs in Northeast Florida.

Virginia-based Middleburg Communities announced early this fall it plans to launch The Hamlet — communities of newly built for-rent homes in fast-growing Southeast markets including Jacksonville; Richmond, Va.; Raleigh, N.C.; Charlotte; Charleston, S.C.; and Nashville.

California-based American Homes 4 Rent’s Windsong Acres in St. Augustine already has leased its 26 higher-end homes starting at $1,800 per month (maintenance included), while its nearby Treaty Oaks is renting 31 homes starting in the $1,900s.

Just last month, Boston’s Freehold Communities introduced leased single-family homes to its Shearwater master-planned community in northern St. Johns County, built by new subsidiary 360 Communities. South Florida’s ERC Homebuilders, meanwhile, is focusing on for-rent manufactured homes in Pasco County north of Tampa, and it has its eye on North Florida, too, though at the moment it’s withdrawn a stock offering through a subsidiary covering this market area.

Driving it all is pent-up demand from millennials, according to real estate analysts.

Rapid job changes, increased mobility, hard-to-attain down payments for new homes, student loan debt, a need for privacy, advantages of community connection and a desire to live in a house but forgo maintenance burdens have all combined to create the surging B2R phenomenon across the country.

Middleburg Communities said it was drawn to the Jacksonville metro area because of its impressive net migration — more than 20,000 new residents between 2018 and 2019, 12th among all metros. 

“Growth of this scale means significant demand for housing, supported as well by the rapid job growth that has been nearly double the national average pace,” Middleburg Communities Chief Investment Officer Kory Geans told The Build-out. “While it's a little early for us to speak to a specific community yet [for the Jacksonville location], Middleburg's Hamlet single-family home communities will typically have approximately 220 units with a mix of one-, two- and three-bedroom floor plans. Every community will have a clubhouse with apartment-like amenities, and each home will have a backyard and modern designs while providing renters with maintenance-free living.”

Research by Middleburg found that more than 80 percent of current rented single-family homes are more than two decades old, creating demand for newer product with lower repair and upkeep issues, according to a news release.

Within 360 Communities’ Shearwater project, B2R homes will feature two- to four-bedroom floor plans, as well as access to Shearwater’s existing amenities and lifestyle events, a news release states.

“Building new homes to be leased is a growing national trend that we are pleased to bring to Shearwater,” 360 Communities Vice President Chris Middleton said in the release. “We are confident this new model will be appealing to a wide-range of families who want the flexibility of a lease with the world-class amenities and neighborhood feel of a master-planned community.”

For more details on these communities, visit LiveattheHamlet.com, Shearwater360.com and AmericanHomes4Rent.com.

In other news:

● Privately owned ICI Homes and David Weekley Homes have closed on about 550 acres from the Skinner family of Jacksonville, with the Seven Pines master-planned community on the drawing board for that parcel and adjoining land. It’s all part of the Southeast quadrant of Butler Boulevard and Interstate 295 at the southern extension of Kernan Boulevard.

The final major piece of land held by the Skinners, who originally also controlled the acreage that now makes up the St. Johns Town Center and University of North Florida, the parcel acquired for Seven Pines is named for the seven Skinner brothers and their connection to the River City, according to a news release. Construction details weren’t released, though the overall 1,000-acre project’s website says it is “Coming Spring 2022.”

The property will feature a 7,900-square-foot Residents Club, 1,600 single-family homes and apartments, in addition to a million-plus square feet of commercial and retail space. A 34-acre Central Park with a lake encircled by two miles of trails and interconnected neighborhoods are planned.

For more information, visit SevenPines.com. 

● Luxury multi-family homes, condos and retail are on the way to the mixed-use Quay Sarasota waterfront community being developed by GreenPointe Developers of Jacksonville.

Along with real estate investment firm Cross Lake Partners, GreenPointe recently announced in a news release that Lennar Multifamily Communities bought 1.65 acres at the Quay, and Kolter Urban acquired 1.15 acres. Plans call for residential, retail, hotel and office opportunities on the downtown Sarasota waterfront.

Lennar plans a 12-story, 240-unit luxury apartment tower, with work to start this May and the first units completed by September 2023, according to a news release. Kolter Urban's 18-level Bayso, Sarasota condo development will include 149 luxury residences priced from the $800,000s. Groundbreaking is eyed for the second quarter of this year, with completion by fall 2023.

For more information, visit QuaySarasota.com.

● St. Johns County’s Meadow Ridge in the master-planned community of SilverLeaf is getting its own amenity center a bit later this year.

The Dream Finders Homes’ neighborhood will include a dog park, playground, zero-entry lap pool and cabana-style clubhouse, according to a news release.

The community off St. Thomas Island Parkway and County Road 210 “is embedded in an 8,500-acre development along the St. Johns Parkway [and] is a nature-lover’s dream with more than 3,500 acres of conservation land,” Dream Finders Division President Brad Muston said in the release.

Almost 90 single-family homesites are for sale, with more than a dozen one- and two-story floor plans ranging from 1,622 to 2,500 square feet. The three- to four-bedroom homes start in the low $200,000s.

For more information, visit DreamFindersHomes.com. 

● Ashley Collins of Collins Builders in Jacksonville has attained Florida Certified Master Builder status. 

The certification spotlights builders with high marks in quality and customer satisfaction, according to a news release. Designees attain a higher standard of professional skills than required by Florida for licensure.

A Stetson University graduate, Collins founded Collins Builders in 2003.

"This is truly a recognition of the hard work of the entire team at Collins Builders and a testament to the blessing from God that I have in serving the people of Northeast Florida," he said in the release.

Florida Certified Master Builders meet rigorous requirements beyond licensure and show building expertise, business stability, integrity and exceptional customer service, according to the release.

To learn more, visit FLCertifiedMasterBuilder.com or CollinsBuilders.net.

Email real estate-related news releases, tips and updates to thebuildoutjax@gmail.com.