The company will deploy $800 million dollars over the next 18 months
ATLANTA (Nov. 10, 2020) — RangeWater Real Estate, a fully integrated real estate company known for developing, acquiring, managing and investing in multifamily communities across the Sun Belt, has launched an innovative build-to-rent single-family platform known as Storia℠. The company will deploy $800 million dollars over the next 18 months, with plans to build approximately 15 Storia communities in Sun Belt metros where RangeWater operates. RangeWater is one of the first multifamily companies in the country to launch a build-to-rent single-family platform of this scale.
The company began testing the concept in 2019 with two build-to-rent townhome developments, one in Atlanta known as Maverick on the Beltline’s Southside Trail, and the other in Boulder known as The Armory. The first development within the Storia portfolio is a detached single-family home community in Flowery Branch, Georgia near Lake Lanier. RangeWater closed on the 51-acre property in July 2020 and has since begun construction. Known as Beacon, a Storia Neighborhood by RangeWater, the 197-home community will deliver first units in 2Q21.
The decision to launch Storia comes in response to fast-growing consumer demand for single-family rental housing. According to John Burns Real Estate Consulting, the Single-Family Rental Market Index rose sharply to 76 in 2Q20 (0–100 scale with below/above 50 = contracting/expanding), up from 63 in 1Q20 (report here). Within the single-family rental sector, the new build-to-rent single-family product is gaining momentum, and until now has been driven largely by local and regional home builders. An industry leader in resident experience and community building, RangeWater will bring its expertise in managing Class A multifamily communities to building and operating the Storia platform.
“RangeWater has developed, marketed and managed multifamily communities that cater to millennials and their lifestyle preferences for the last decade,” said Steven Shores, CEO of RangeWater. “We know this renter, we’ve lived with this renter, and in recent years, we recognized the need for a new type of living experience for those who’ve outgrown their apartment and are ready to move up to a single-family home. Storia neighborhoods offer an ideal solution for those who want more space and privacy, the convenience of a professional property manager, a true sense of community and relief from the financial hurdles associated with homeownership. Our Storia platform, with its institutional-level investment, represents the next generation of the single-family rental sector.”
Millennials, particularly those who are 35 to 44 years old, represent a fast-growing age set with dramatically changing consumer behaviors. From 2019 to 2035, the 35 to 44-year-old cohort will increase by 8.4 million people or by 20 percent, significantly outpacing the nation’s overall population growth rate of 12 percent, according to Moody’s Analytics. This group is graduating from apartments, starting families of their own and seeking more privacy, more square footage and their own backyard. And, because this generation remains laden with debt, single family rental housing is an attractive option.
RangeWater also expects to see empty nesters and single parents show interest in Storia communities. From 2007 to 2017, renter households for the 60+ age group increased 43 percent and is forecasted to grow another 38 percent from 2017 to 2025, according to RentCafe.comand Census/ACS 1-year estimates.
Founded in 2006, RangeWater’s multifamily portfolio spans luxury, market-rate and age-targeted housing, with more than 50,000 units currently under management. The in-house property management team will create a sense of community and infuse best-in-class hospitality services into its operations of Storia neighborhoods, all of which will feature greenspaces and/or open-air clubhouses to host gatherings and social events planned by on-site staff.
RangeWater will leverage its in-place geographic footprint across the Sun Belt and target the following markets for future Storia communities: Atlanta, Austin, Dallas, Denver, Charlotte, Jacksonville, Nashville, Phoenix, Raleigh and Tampa.
For more information about RangeWater, visit liverangewater.com.
About RangeWater Real Estate:
RangeWater is a fully integrated multifamily real estate company creating fulfilling experiences for its partners, clients, residents and employees across the Sun Belt. The Atlanta-based company has acquired and developed more than 28,000 multifamily units since its inception in 2006 representing in excess of $4.8 billion in total capitalization. RangeWater currently manages a balanced portfolio of over 50,000 multifamily units across 10 states. With offices in Atlanta, Dallas, Denver and Tampa, RangeWater targets high job growth markets with demand for new housing.