Buckingham Advisors Arranges $31 Million In Construction Financing For Multi-Site, Build-To-Rent Portfolio In Houston

Houston, TX - Buckingham Advisors, a New York-based, boutique commercial real estate firm, has secured $31 million in senior construction financing for a multi-site community of build-to-rent, single-family homes in the Houston, Texas area.

The properties, totaling 102 units, are situated on five separate subdivisions in the Houston submarkets of Spring Branch, Midtown and The Galleria.

Total capitalization for the overall transaction amounted to $47 million and Buckingham Advisors advised the borrower on the full capital stack.

The properties are being developed by Atma Homes and Allied Orion, with financing provided through CoreVest.

“It was great working with Buckingham Advisors on this transaction,” said Boris Zhuravel, managing director of CoreVest. “There’s tremendous tenant demand for newly built, Class-A single family rentals. CoreVest is thrilled to play a part in helping the Atma/Allied Orion team deliver high-quality rental inventory into the market.”

“The rise of Build-to-Rent (BTR) communities is fueled by the current tenant migratory trend that has been opting out of smaller, denser urban housing in favor of larger, less dense housing options. Millennials, in particular, are driving a portion of this demand,” said Simon Goldstein, principal of Buckingham Advisors. “This demographic is looking for more space as they contemplate a post-pandemic world where they still work from home a portion of the week. ”

“A hot real estate market like Houston …can be ideal for single-family rental property investors,” according to a June 1 report from Roofstock, an Oakland, CA-based online marketplace specializing in this asset class. “That’s because the strong job market in Houston is attracting more people, and when the housing market is tight they rent instead.”

Investors have been encouraged by recent migration into the Houston area. As of July 1, 2020, U.S. Census Bureau estimates found that the city’s metropolitan statistical area had recorded its largest net migration since 2016.

According to the city’s Planning and Development Department, “Houston’s economy is strong with its positive economic indicators that include strong job growth, affordable housing, and lower cost of living.”