(If you missed it, discover part one.)

Key Moments:

• Who are the BFR market participants? (0:00)
• What is Capital Square’s build-for-rent track record? (jump to 1:27)
• What have been the agency financing trends with BFR? (jump to 3:29)
• What are the synergies between managing multifamily and managing Build for Rent? (jump to 6:28)
• What are the latest build-for-rent metrics around supply and demand? (jump to 8:38)
• What’s next for Capital Square in the BFR space? (jump to 10:55)

Approximate Transcript:

Jorge: Let’s talk about capital markets for a little bit. We are focused on providing this type of investment in a build-for-rent (BFR) property, an institutional quality asset, to retail investors – people that otherwise wouldn’t have that ability. Who else is out there? Who are we seeing in the space? Who are the market participants? And when we look at our own portfolio, when we think about an exit strategy, what’s the buyer pool look like for us? What’s our potential for success if we want to go full cycle with a property?

Bennie: There’s been a lot of great institutional interest in Build for Rent, both from the equity perspective and the debt side. On the equity side, traditional multifamily developers, they’re experts in dealing with zoning entitlements, navigating difficult situations with the city governments, putting the shovel in the ground, and building big, beautiful buildings in tandem with architects and general contractors (GCs), and so they’re taking their expertise and moving it into this asset class. Sunstone Two Tree is a great partner of ours, and they are very well respected, best-in-class in what they do, both on the multifamily side and now on the Build for Rent side, too.

In terms of real estate investors, as we mentioned, we’re one of them. Capital Square launched our build-for-rent platform three years ago. In the course of that time, we’ve been very busy. We’ve closed over a dozen deals within this space, over half a billion dollars of gross asset value (GAV) across transaction types: stabilized, forward and development.

And other participants, such as Blackstone, have put a lot of money in here. In 2024, they took Tricon private with a big build-for-rent pipeline behind it for $3.5 billion. Brookfield acquired Divvy Homes earlier in 2025 for $1.5 billion, where they bought the platform and the underlying 7,000 homes as well. And so, there’s a lot of very interested equity participants in the build-for-rent space.

On the debt side, there’s tremendous amount of interest here. And because of this, spreads are actually at record lows. It’s very competitive. There’s a lot of powder out there for debt providers, and this is bifurcated between agencies, insurance companies and private debt funds too.

On the agency side, both from Fannie and from Freddie, they have a cap of $150 billion a year that they can allocate to this particular asset class. So that’s a lot of money.

And from the insurance side, they always have plenty of money to put to work and put in safe assets as they exercise their asset liability management and debt funds. You’ve probably heard the phrase “the golden age of private credit,” right? And that’s because they’ve raised a tremendous amount of money as base rates went from 0% to over 5% and they need to put that money to work. It’s extremely competitive. When we were raising the [mezzanine loan] last year, we got seven term sheets. It’s very competitive. A lot of participants in this asset class.   

I know that Capital Square is a big consumer of agency financing. What trends have you seen there? Particularly, recently, we closed a deal two months ago, and we closed that at max leverage at 100 basis points, spread over the 10-year treasury. What trends have you seen from being a participant in the agency programs?

Jorge: We’ve done over $2 billion in agency debt over our lifetime, mostly with conventional multifamily, and as you noted, we closed a recent property with a Fannie Mae loan with terms that were pretty much comparable to conventional multifamily. The trend I’ve seen is that this is less of a buzzword asset class now, and people just have a real understanding of the nuances and the differences but in a very positive way that has driven the agencies more toward the product.

I think several years ago, there were more question marks. The trends have now allowed them to just underwrite those BFR deals, again, a lot more like a multifamily, a conventional deal. They have a better understanding. We have better track record. We have performance metrics that we can point to. And now those limitations are a lot more specific, like they won’t lend to a scattered site property, but that’s okay with us, because that’s not our focus. That wouldn’t really work for what we do – primarily on the acquisition side, on the stabilized size – which is to offer these properties for people looking for a 1031 exchange. That net scattered site portfolio just wouldn’t work from an identification, from an exchange perspective. But more importantly, it allows us to tap into agency debt, which typically is the best fit for what we do under the DST platform to provide that 1031 exchange solution.

So, very positive from our side, and we look to do a lot more in the future – tapping into the best debt available, the lowest spreads available – so that our investors can benefit from that high-quality debt and a high-quality real estate asset class.

Bennie: We’re also getting really great construction financing. At Capital Square, we’re active on the development side for Build for Rent too. So, what we do there: we love to build assets that we can’t necessarily acquire, and we’re also being part of the solution to the housing crisis that we see in the U.S.

The developments that we create are best-in-class in terms of the amenities, that build quality. It’s got the swimming pool, the fitness center; it’s got everything that you can ask for, which is really great for our resident profile.

Speaking of those residents, Capital Square is a big investor in multifamily, and three years ago, we launched a property management platform called Capital Square Living or CSL. What synergies do you see between managing multifamily and Build for Rent? Is it really different, or can the multifamily operators really know how to operate Build for Rent?

Jorge: Same, same, but different, right?

I think there are a lot of lessons to learn when you don’t know the product very well, but overall, you take best practices from other operators, and you adjust. It’s understanding the demographic and understanding what residents truly want out of their experience. It can be perhaps a little more hands-on – making sure that the service provided and the upkeep of the property is there – because we want residents to treat the home that they’re renting from us like they own it. That’s going to give us the best financial results. So, it’s paying attention to those nuances, to the demographic, and responding accordingly.

Bennie: When I entered the real estate space in 2021, it was questionable whether Build for Rent would stay as an asset class. And over the last four or five years, I think it’s really tremendous in terms of how it’s evolved as an asset class, even through the brokerage networks.

A lot of the interactions that we have with the big brokers, like CBRE or JLL, it’s really folded into their multifamily space. A lot of investors and a lot of brokers are viewing BFR almost as a cousin or sub-asset class within traditional multifamily. It’s very similar in terms of how it operates, to a certain extent, and you see multifamily operators and property managers being property managers for Build for Rent too, such as Greystar and CSL, which is doing an excellent job for the products in our portfolio. But it’s really great to see the evolution of that asset class over such a short period of time.

Jorge: Agreed. And again, the theory is being proved correct that this is a great product: a great solution for the housing crisis that we have in the U.S. but also, at the same time, lending itself to a great investment property as well.

Bennie: As we look forward, I think that a lot of supply has come, and it’s being absorbed extremely well. When we look when base rates were at zero post-COVID, it really fueled the boom for building. You had peak starts right after COVID, and when you compare those starts relative to today, that’s fallen 50%. Compared to last year, it’s fallen by over 20%. All the deliveries that are happening, they’re being absorbed because of the tremendous demand that we’re seeing in the types of markets that we’re investing in.

Going forward, what do you think is going to happen as it relates to rent growth and occupancy, very important metrics for Build for Rent?

Jorge: I think that’s a very good point on the supply side. On the demand side, we obviously don’t know what interest rates are going to do, but the truth is – or at least the expectation is – we’re not going back to zero, right? So that main driver for renter demand in the BFR space, of that delta between owning versus renting a home, we don’t see it coming back to the historical norm anytime soon. We expect to continue to see it elevated. I think that will continue to drive the demand.

And again, it’s a new product. It’s the quality that you’re looking for. It’s the home-like product that you’re looking for, if you are a young professional with a kid on the way, and you want a little more separation from your neighbor; you want a yard; you want a good school. Whatever those reasons might be, it just means more demand for this asset class, and when the supply side stabilizes, I think that bodes really well for the future: higher occupancies, being able to lease up properties faster and continue in a rent-growth environment going forward. So, I think the outlook is really good for this asset class.

Bennie: That’s great. When you see the Capital Square portfolio today, it’s tremendous what the firm has done over such a short period of time. What are you most excited about in the build-for-rent space? And where do you see Capital Square moving forward as it relates to the asset class?

Jorge: Scale. I think the one of the few challenges with Build for Rent is that they tend to be smaller properties. In the conventional multifamily side, our average property is over 250 units, probably close to 300 units. It’s easier to manage that on site when you have that many units to make up for the cost of staffing the property. One of the challenges we see is with a 100-unit property, it becomes more difficult to operate. You can’t have one person alone working an office for a property. It just doesn’t work because they need time off; they need vacation.

So typically, a larger property allows you to operate more efficiently from a staffing standpoint. On a build-for-rent property, call it between 50 and 100 units, which has been historically our acquisitions, it’s a little bit harder to get those efficiencies. But with our management company scaling, we’re able to share some staff, and as we continue to grow the portfolio, we’re going to see more opportunities to rein in those costs even further, and again, continue to gain experience, not just operating those properties, but gaining from some of the scale that we’ll have as we build out the portfolio in the markets that we talked about, where we continue to see very positive supply and demand trends and where we want to grow.

Bennie: Well, it’s been a really great conversation. I definitely learned a lot from you, and it’s been really tremendous to see what Capital Square has done in such a short period of time in a nascent asset class.

With all the tremendous tailwinds that we’re seeing from a fundamental perspective, it’s going to be really exciting to see what Capital Square will continue to do in the future for Build for Rent.

Jorge: Likewise, and I’m really excited for what the future holds.

The future of Build for Rent starts here.

At Capital Square, we believe the Build for Rent asset class is positioned for growth. Discover how our open BFR offerings might fit your 2026 goals. Contact our team today.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative and illiquid.

The post Q1 2026 Investment Insight: Build for Rent’s Acceleration (part 2) appeared first on Capital Square - Raising capital, buildings and expectations.

BFR homes offer significant lifestyle advantages over traditional multifamily housing. These properties provide greater privacy and feature spacious layouts, typically with dedicated outdoor areas, such as backyards or patios. The average unit size of a BFR home is approximately 1,200 to 2,000 square feet, compared to around 900 square feet for a typical multifamily unit. First-floor ceilings in BFR homes often reach nine feet or higher, and windows may be present on multiple sides, providing abundant natural light.[i]

The demand for BFR housing is underscored by shifting demographics and lifestyle preferences. With homeownership rates declining among younger generations, many families are opting for the rental lifestyle without sacrificing space and community feel.[ii] BFR developments cater to this demand by providing neighborhood-style settings, often with amenities such as pools, clubhouses, playgrounds and walking trails. According to the National Rental Housing Council, the BFR segment has grown at an annual rate of over 30% in recent years, outpacing other residential categories. As of 2024, there are over 140,000 BFR units under construction nationwide, highlighting the scale of investment flowing into the asset class.

Investors are increasingly attracted to BFR communities for their total return and income potential and resilience during economic uncertainty. Single-family rentals (SFRs) have demonstrated an effective hedge against inflation, as evidenced by rent growth that has consistently outpaced inflation rates over the past decade. Expanding demand pockets, particularly in high-growth regions like the Southeast U.S. and Sun Belt, are driving further interest and positioning BFR as a critical component of the residential real estate landscape.

The evolution of the BFR asset class is at an exciting inflection point, with increased institutional interest and consumer demand propelling new development and opportunities for long-term growth. As a differentiated rental product – offering privacy, space and community amenities – BFR continues to set new benchmarks in the rental housing market, providing a compelling option for both residents and investors.

Recent build-for-rent datapoints catching our attention:

• A 3.9 million single-family home shortage exists in the U.S., and this shortage is most prevalent in the South.[iii]
• The cost of home ownership is approximately 52% higher than monthly rent for the average American starter home. While this will likely tighten with lower interest rates, ownership costs are predicted to stay elevated over the next few years.[iv]
• Positive rent growth also returned in Q2 2024 with an increase of 1.5%.[v]
• In addition to stronger rent growth projected in the next two to three years, build for rent has significantly outperformed both SFR as a whole and traditional apartment occupancy since the end of 2021. On average, BFR communities across the U.S. are occupied at 97%.[vi]
• BFR communities make up 1.5% of the total single-family rental market. In other words, there’s plenty of room to grow.[vii]

At present, single-family rentals represent 31% of all rental units in the U.S. Of the 14 million SFRs, only 3% are institutionally owned. By comparison, other core real estate asset classes, such as office and multifamily, are 44% and 45% institutionally owned respectively.[viii]

This means the overwhelming majority of BFR communities are owned by “mom and pops,” with over 80% of owners having fewer than 10 units under their control.[ix] This shows a great deal of room for institutions to play a bigger role in the ownership and development of single-family rentals, such as build-for-rent communities, adding much needed housing supply across the United States.

Capital Square’s Response to the Latest BFR Data:

As an owner, builder and manager of best-in-class rental housing properties across the United States, Capital Square is well-positioned to continue growing its portfolio. The majority of Capital Square’s BFR footprint is concentrated in top-performing markets in the Southeast, Sun Belt and Mountain West.

We are often asked, “What if mortgage rates return to 3%?”

Examining numerous major multifamily markets and the cost-to-own versus the cost-to-rent at a 7% mortgage and 3% mortgage, we can see that even in the 3% mortgage scenario, each of these major markets remains more expensive to own that rent.[x]

Data-driven investment decisions are at the forefront of everything we do at Capital Square. This is one more way we fulfill our mission to raise capital, buildings and expectations.

Explore our portfolio and open offerings to learn more.

[i] CBRE, 2024.

[ii] NAHB, 2024.

[iii] CBRE Research, CBRE Econometric Advisors, Census Bureau, January 2024.

[iv] CBRE Research, CBRE Econometric Advisors, Freddie Mac, U.S. Census Bureau, Realtor.com®, FHFA, July 2024.

[v] CBRE Research, Yardi Matrix, July 2024.

[vi] John Burns, 2024.

[vii] “Built-to-Rent Residential Market Overview,” CBRE Research, September 2024.

[viii] “The U.S. Commercial Real Estate Investable Universe,” Clarion Partners Research, October 30, 2024.

[ix] Census Bureau; JBREC public records data; John Burns Research.

[x] John Burns Real Estate Consultants; Greenstreet, 2022.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

The post Build-for-Rent Investments Keep Getting More Exciting appeared first on Capital Square - Raising capital, buildings and expectations.

Recent headlines add weight to a shifting narrative:

• “Renters Agree it’s a Bad Time to Buy” (Yield Pro, 7/9/24)
• “Homeownership Costs in US Jumped 26% Since Pandemic Began” (Bloomberg, 6/10/24) 
• “High-Earning Americans Are Now More Likely to Rent Than Buy” (Robb Report, 6/1/24)

Adding to the story of the active rental market – where individuals and families are choosing rental housing for both financial and lifestyle reasons – is RealPage’s July 2024 forecast that suggests roughly 40% of the top 50 U.S. markets may see rent growth above 3% in 2025, with 55% of markets expecting 2-3% growth.

Capital Square’s Response to the Rental Climate Headlines:

As an owner, builder and manager of best-in-class rental housing properties that are in demand, Capital Square is well positioned to serve this historically high population of renters for years to come.

Over 40 of our multifamily communities across the Sun Belt are now managed by Capital Square Living, Capital Square’s property management division, establishing long-term value for investors from the property-level up. In-house property management maximizes revenue, increases operating efficiencies and reduces costs, while delivering best-in-class service. With Capital Square Living, we enable our residents to thrive, while our multifamily real estate portfolio also becomes even more exciting, fully leveraging the strength of our vertically integrated real estate firm.

Our growing number of build-for-rent (BFR) communities is also answering the elevated demand from renters who desire the space of a single-family home without the significant financial responsibility of home ownership. Thus, the benefits and flexibility of rental communities can now reach new populations seeking larger housing solutions, complete with a yard for their dogs.

The rent growth predictions for 2025 and beyond, when the next housing crisis on the horizon begins to arise, mean opportunities continue to reside in multifamily and BFR real estate investing.

At Capital Square, we’re ready for it, living our mission as we continue to raise capital, buildings and expectations. Contact us today to learn more.

The post A Favorable Rental Climate of Both Circumstance and Choice appeared first on Capital Square - Raising capital, buildings and expectations.

Along with its surrounding suburbs – locales like Glendale, Scottsdale, Gilbert, Chandler, and Mesa – Phoenix is seeing significant population growth in connection with these increased job opportunities.

Moreover, where there is job growth, housing demand follows. Phoenix was recently named the #2 major U.S. metro market for rental demand, according to analysis from RealPage.

This leads us to Capital Square’s development initiatives. At the foundation of every Capital Square acquisition and development is the property’s market. Cities that have demonstrated successful growth and booming future potentials are of special interest in our data-driven market selection process. The greater Phoenix area meets exactly the criteria we pursue.

Build-for-rent (BFR) developments have become a strategic focus of Capital Square. This unique asset class creates rental housing for growing families often stretched beyond the limitations of traditional apartment communities. While a housing crisis exists in much of the United States, single-family rentals are a unique demand. Combining population shifts to the region and the gap of needed rental homes, we see great potential in BFR development in the Phoenix area, specifically in the suburb of Glendale.

Glendale, Arizona blends historic charm with the nation’s finest in sports, shopping, dining, the arts and stunning outdoor beauty. It’s a city with a strong track record and extraordinary possibilities.

At Capital Square, we invest and develop in gateway, secondary and tertiary markets, sponsoring investments with potential returns designed to satisfy investors’ specific goals. “Job hot spots” and cities with booming in-migration are locations we watch closely, and we’re thrilled to increase our presence in the Phoenix area.

Discover more about our DST, OZ fund, development fund and REIT investment opportunities, then contact our team or your registered representative.

Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

The post Phoenix Rising: Job Growth & Booming Build-for-Rent (BFR) Demand appeared first on Capital Square - Raising capital, buildings and expectations.

How have multifamily fundamentals shifted over time?

A shortage of multifamily housing and several other economic indicators point to a strong rental housing market for years ahead, but the conversation is shifting.

The housing deficit lingers:

• Higher housing prices and mortgage rates have pushed even more people toward the rental market, which has markedly increased demand in recent years.
• A cumulative 15+ year production shortfall tied back to the halt of construction during the 2008 Global Financial Crisis, as well as restricted zoning and rising construction costs, has continued the supply/demand imbalance.
• The U.S. will require fifteen million new housing units over the next ten years to meet demand created by household formations, second homes desired and existing stock obsolescence.¹

Thus, rental housing demand remains high, especially amid continuing “flight to quality” trends, but luxury apartment buildings are not the totality of this conversation. ²

How do single-family rentals differ from multifamily rentals?

Single-family rentals (SFRs) answer the need of a different demographic than multifamily rentals, offering the same flexibility but with more space, a private yard, and no neighbors above or below each home.

Notably, the cumulative shortage of multifamily starts has also begun to narrow what was once an insurmountable gap. Recent data from experts, such as Dr. Linneman himself, now shows that new deliveries and projects soon to deliver have reduced the multifamily shortage to only 370,000-units.³ This number is still dramatic but not as drastic as it was only a few years ago.

The lesser-discussed datapoint is that the single-family home shortage is still expanding. (See “Average Rental Costs vs. Average Monthly Mortgage Payments in the United States” in this expanded, downloadable article.)

How does build for rent capitalize on single-family rental demand?

Build-for-rent (BFR) communities are a powerful answer to single-family rental demand. BFR offers the institutional management and community enhancing services of a multifamily community but in a stand-alone home environment.

What was once approximately a 1-million-unit gap in 2013 is now a 3.5-million-unit gap in single-family rentals, and this number is growing – not shrinking – year over year.⁴

Both multifamily and single-family vacancy rates have remained low, and current economic conditions are making homeownership increasingly difficult. While Millennials in their thirties and early forties have entered the prime home-ownership window, 65% of renters are presently over the age of 35. Considering roughly 16% of renters are Boomers in their mid-sixties and older, the data demonstrates that a large portion of the prime home-owning population continues to rent.⁵

A number of factors contribute to the elevated rental demand in this age group, including inflation-related cost increases and interest rates at roughly 7%.⁶

Growing families often stretch beyond the limitations of traditional apartment communities, and build-for-rent homes allow the space and freedom of a house at the more economic price-point of a rental.

What does the latest data suggest about SFR & BFR demand?

Capital market challenges and rising development costs are prohibitive to many new construction starts. This dynamic is expected to put continued pressure on new supply in the short- and medium-term, but Capital Square is well positioned in this environment, with newly developed BFR projects scheduled to deliver over the next three years. The team has a deep pipeline and expects to continue capitalizing on current market conditions benefiting the sector and its operating fundamentals.

Owning an entry-level home is approximately $1,500 more expensive per month to own versus to rent in the U.S.⁷ This cost disparity is expected to fuel renter demand and contribute to sustained high occupancy rates in the rental market.

Furthermore, with 62% of homeowners locked into mortgages below 4% – and 23.5% below 3.0% – those who might otherwise be inclined to sell are not letting go of their low mortgage rates.⁸ For comparison, a 30-year fixed-rate mortgage averaged 7.19% in late September 2023. ⁹ Thus, even if a potential homebuyer wanted to own rather than rent, the lack of for-sale inventory is increasingly a challenge.

How does local submarket research apply to the BFR equation?

A great variance exists between cities across the U.S. with regard to population shifts, existing housing inventory and fluctuating resident / investor needs. Cities such as Raleigh, North Carolina; Phoenix, Arizona; and Dallas / Ft. Worth, Texas are seeing major in-migration and rental demand.¹⁰ Several population centers in Sun Belt markets have seen record-breaking rent growth as they answer this pressure, yet even these increased rental costs are often lower than those associated with homeownership.¹¹

Capital Square’s build-for-rent and multifamily developments (and their related development funds and opportunity zone funds) are guided by data-driven market selection and seek to deliver into undersupplied markets.

BFR provides a solution to sustained single-family housing demand, and Capital Square is building and acquiring properties where such demand is the strongest.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

The post Build for Rent (BFR) & Capitalizing on Expanding Pockets of Demand appeared first on Capital Square - Raising capital, buildings and expectations.

Single-family renters prefer BFR because it allows them:

• The space of a single-family home
• The flexibility to move if needed or desired
• Little to no home maintenance
• Significantly less financial responsibility, when compared with home ownership 

Thus, BFR allows for the convenience and community feel of a multifamily rental, but with room to spread out and grow.

Why Invest in Build for Rent?

1. Demand for rental properties is growing rapidly. Renters are renting longer for many reasons. An increasing number of younger renters do not have the resources to own their own home, and many older residents with fixed budgets are likely to rent indefinitely. The average interest rate on a 30-year fixed home loan more than doubled recently​, and would-be buyers have pulled back. Rental living answers a real demand, offering financial and leasing flexibility to those who need it.
2. U.S. housing has been underbuilt for over a decade. Developers need to build more than four million housing units nationwide to keep up with demand. In addition, the U.S. is experiencing a cumulative 20-year production shortfall of over 600,000 apartment units, while many older homes in the rental marketplace are becoming obsolete. Increasing demand for build-for-rent homes led to the construction of more than 6,700 such properties in 2021, the highest yearly total to date, while an estimated 14,000 build-for-rent homes will be completed in 2022. But this doesn’t begin to cover the difference.
3. Single-Family Rentals (SFR) historically provide a hedge against inflation. The short-term leases of single-family rentals can adjust to inflation, remaining flexible and increasing annually to the maximum that the market will bear. ​A net leased asset, such as a retail or office property, may have a 2% or 3% rent “bump” per year, but when inflation is over 8%​, short-term leases, like residential rental communities, enable growth even in challenging environments.
4. Build for Rent tops private market return expectations. Examining all multifamily asset classes, built-for-rent records a risk-adjusted return of 8%, the highest of all classes, followed by manufactured housing at 7.2%.

With the formation of our private equity group in 2022, Capital Square established a new focus on build-for-rent communities. We believe BFR has a powerful future ahead, and we’re going to be there for it.

The post Why Build for Rent (BFR)? appeared first on Capital Square - Raising capital, buildings and expectations.

Between July 2021 and July 2022, Capital Square CEO Louis Rogers and his featured guests took a deep dive into compelling real estate investing topics, such as Section 1031 exchanges, tax-advantaged real estate investments, multifamily investing, qualified opportunity zone funds, real estate investment trusts and more.

The show was broadcasted live on WVRA (1140 AM & 96.1 FM).

Listen to past episodes:

July 3, 2022 – Interview with Sherri Ellis, President of the National MS Society, Virginia Chapter, and Dr. Myla Goldman, VCU School of Immunology Professor & Division Chief, Vice Chair for Faculty Development, Neurology Department, Continued

June 26, 2022 – Interview with Sherri Ellis, President of the National MS Society, Virginia Chapter, and Dr. Myla Goldman, VCU School of Immunology Professor & Division Chief, Vice Chair for Faculty Development, Neurology Department

June 12, 2022 – Andrew Tapley, Senior Managing Director, Walker & Dunlop, Continued

June 5, 2022 – Andrew Tapley, Senior Managing Director, Walker & Dunlop

May 22, 2022 – A Conversation with John Harvey

May 15, 2022 – A Conversation with John McGuire, Member of the Virginia House of Delegates and Candidate for Virginia State Senate, Continued

May 8, 2022 – A Conversation with John McGuire, Member of the Virginia House of Delegates and Candidate for Virginia State Senate

May 1, 2022 – An Introduction to section 1031 Exchanges

April 24, 2022 – A Conversation with Whitson Huffman and Adam Stifel, Continued

April 17, 2022 – A Conversation with Whitson Huffman and Adam Stifel

April 10, 2022 – A Conversation with Natalie Mason, Continued

April 3, 2022 – A Conversation with Natalie Mason

March 20, 2022 – A Conversation with Jaqueline Rogers, Continued

March 13, 2022 – A Conversation with Jaqueline Rogers

March 6, 2022 – A Conversation with Robert Miller, Continued

February 27, 2022 – A Conversation with Robert Miller, Continued

February 20, 2022 – A Conversation with Robert Miller

February 13, 2022 – A Conversation with Jeff Katz, Continued

February 6, 2022 – A Conversation with Jeff Katz, Continued

January 30, 2022 – A Conversation with Jeff Katz

January 23, 2022 – A Conversation with Professor Robert McNab, Continued

January 16, 2022 – A Conversation with Professor Robert McNab

January 9, 2022 – A Recap of 2021

December 19, 2021 – A Conversation with CEO and Executive Director at The Port of Virginia Stephen Edwards

December 5, 2021 – Let’s Talk About REITs

November 21, 2021 – A Conversation with Don Finley of the Virginia Business Higher Education Council

November 14, 2021 – A Conversation with Capital Square Executive Vice President James Brunger

November 7, 2021 – Section 1031 Exchange Seminar

October 31, 2021 – A Conversation with Chief Strategy & Investment Officer Whit Huffman

October 24, 2021 – A Conversation with Multifamily Investment Expert Jay Olander

October 17, 2021 – John McGuire, Former Navy SEAL, Candidate for Re-Election to the Virginia House of Delegates District 56, Continued

October 10, 2021 – John McGuire, Former Navy SEAL, Candidate for Re-Election to the Virginia House of Delegates District 56

October 3, 2021 – It’s All About the Babies with Demographer Ken Gronbach

September 26, 2021 – Virginia Governor Candidate Glenn Youngkin, Continued

September 19, 2021 – Virginia Governor Candidate Glenn Youngkin

September 12, 2021 – From TICs to DSTs

September 5, 2021 – Preserve 1031 Exchange

August 29, 2021 – Dr. Peter Linneman – The Golden Age of Multifamily Investing, Continued

August 22, 2021 – Dr. Peter Linneman – The Golden Age of Multifamily Investing

August 15, 2021 – Whitson Huffman on Investing and Multifamily, Continued

August 8, 2021 – Whitson Huffman on Investing and Multifamily

August 1, 2021 – A Discussion with Willie Walker, CEO of Walker & Dunlop, Continued

July 25, 2021 – A Discussion with Willie Walker, CEO of Walker & Dunlop

July 18, 2021 – Section 1031 Exchanges, Continued

July 11, 2021 – An Introduction to Section 1031 Exchanges

July 4, 2021 – Investing in Real Estate to Maximize Profits and Tax Benefits

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