Home News While people can’t afford to buy, builder constructs thousands of rentals for investors

While people can’t afford to buy, builder constructs thousands of rentals for investors

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As potential homebuyers wait for prices and mortgage rates to drop, a company in Arizona is buying and renovating rental homes that offer a similar experience to traditional condominiums. , trying to fill that void.

Scottsdale-based Tricor has built or renovated 22,000 rental homes since 2014. Last year he completed 2,600 buildings. The company operates in his 10 states and is licensed as a general contractor in 17 states.

“There’s a lot of traction in Texas,” said Joel Thomas, Tricor’s vice president of construction, adding that investors still see a need for D-FW housing. “There are people moving to Dallas on a regular basis. Even if we think it’s slowing down a bit, the pace is still outpacing new construction and rentable units.”

Joel Thomas is Vice President of Construction for Tricor, based in Scottsdale, Arizona.(Jessica Suellen Madera / Jessica Suellen Madera)

Tricor has been operating in the D-FW area for about 3 years and has used trailers on site. Next month, it plans to open its first North His Texas office in Addison. The company currently plans to complete nearly 300 homes in his two communities in D-FW by the fall, with about 1,000 homes planned for future communities, which could break ground soon. I have.

“The housing market has slowed and there is a lot of uncertainty, but people in the construction rental industry are jumping in and moving,” Thomas said. “It’s really funny.”

Tricor’s clients range from small businesses with 100 homes to institutional investors investing hundreds of millions of dollars in new construction.

Thomas said the company has even renovated homes for for-sale builders, including public builders in North Texas, and has sold entire communities of hundreds of new homes to rental investors.2022 the beginning of.

Institutional investors are now cautious as they speculate about whether home prices are at their highest right now or could be better in the next six to eight months, says Thomas. said Mr.

“Everyone is waiting to see what happens in 2023,” he said.

Tricor is constructing the first 230 units of Carmel Villas, a community in Denton along Interstate 35E on Pockrath Page Road, which will eventually have 400 townhomes. Townhomes have 2-3 bedrooms and average 1,200 square feet.

Construction continues on Boardwalk, a 65-unit rental community in Lancaster.
Construction continues on Boardwalk, a 65-unit rental community in Lancaster.(Elias Valverde II/Staff Photographer)

The company is underway with the first 65 single-family homes in a community called Boardwalk, east of the intersection of North Houston School Road and Cedardale Road south of Dallas in Lancaster. Each house has his four bedrooms and his 2,000 square feet of habitable space. Once completed, a community can have up to 100 homes.

The company will also break ground in January in Westridge Oaks, New Braunfels, a city on Interstate 35 between Austin and San Antonio. The project includes 193 single-family rental homes and is expected to be completed by early 2025.

Tricor is developing and building two D-FW communities for two national rental funds, which Thomas declined to name. These investment companies own the land and finance the projects.

“There is no institution that doesn’t include Dallas in the top five. [metro areas] That’s what they’re looking at,” Thomas said.

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