Dallas Based Real Estate Developer Launches Private Equity Offering For Development of Build-to-Rent Communities
Provident Realty Advisors has launched an investment offering on the private equity real estate platform CrowdStreet for the development of seven parcHAUS single-family rental communities in high-demand markets throughout Texas.
This type of development is now considered an institutional-quality, multifamily investment due to their maturity and demonstrated investment performance. They consist of largely detached or semi-detached single-family homes and/or townhomes and include amenities similar to traditional multifamily properties.
Investment Highlights: The demand for single-family rentals is expected to continue growing over the next several years. This is especially true in Texas, which has one of the highest population growth rates in the country.
The inflated housing market is now driving the demand for single-family rentals even further as homeownership is becoming less affordable for average families.
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Minimum investment: $100,000
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Target investor IRR: 18% – 22%
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Target equity multiple: 1.9x – 2.2x
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Target average cash yield: 6.2%
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Target investment term: 5 years
Deal Sponsor: Provident Realty Advisors is a privately held real estate development and investment firm that has acquired over $5 billion worth of real estate estate and currently has approximately $2.7 billion in assets under management.
The company has raised capital for eight other offerings through the CrowdStreet platform. One of the eight investments has been fully realized and outperformed its 19.4% target IRR – providing investors with a 24.1% IRR. Another parcHAUS build-to-rent community development is currently outperforming its targets and the remaining projects are either performing or still under development.
Find more information on this offering as well as other private equity real estate investments through Benzinga’s Offering Screener.
Photo: Courtesy of CrowdStreet
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