TruAmerica Multifamily has launched a Build-For-Rent development division to build townhome and single-family rental communities in suburban submarkets. Veteran BFR executive Mitch Rotta has joined the firm as senior managing director to lead the new division.
The initial roll-out of TruAmerica’s in-house BFR platform will be in high-growth Southwest, Southeast and Texas suburban markets, which represents about 60% of the firm’s $16.1 billion multifamily portfolio.
“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,” said chief executive officer 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 BFR space for the majority of his career, most recently with Tricor Homes, a 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.
TruAmerica will focus on communities with townhomes ranging in size from 1,200 to 1,500 square feet and single-family homes between 1,800 to 2,200 square feet with rents affordable to working class American families.
“As we grow our investor fund business, our BFR platform will be yet another avenue for our existing LPs to invest in the TruAmerica brand,” said Noah Hochman, Co-Chief Investment Officer and Head of Capital Markets.