NexMetro Communities, a pioneer builder of luxury leased home communities, and Trez Capital, one of North America’s largest private non-bank lenders, are working together in a multi-project deal with committed capital in excess of $100 million.
The lending relationship initially includes five of NexMetro’s Avilla Homes communities slated for 2018 in the Phoenix, Dallas and Denver markets. Trez, which has provided innovative private financing for commercial properties throughout the United States and Canada, will manage the relationship out of its Dallas office.
“NexMetro is a proven leader in building luxury leased home communities that offer consumers an innovative leased home experience,” said Jason Stowe, of Trez Capital Group Texas. “Our Trez executive team toured Avilla neighborhoods and quickly understood the tremendous value and appeal of these apartment homes for consumers and investors. We believe the concept will continue to escalate in demand and popularity.”
Led by millennials and boomers, the demand for leased home communities is surging, with NexMetro expanding into new markets and more than doubling the number of its Avilla Homes communities, said Josh Hartmann, NexMetro COO. The company, which currently has more than 2,600 homes either built, under construction or under contract, has already closed on two of the initial five Class-A projects with Trez.
“Our companies have a shared vision of Avilla Homes as an innovative response to the sizable and growing consumer demand in the leased-home marketplace,” said Hartmann, noting that the National Multifamily Housing Council estimates that 4 million new apartments will be needed by 2030 to keep up with demand. “There has been a substantial shift in the renter mindset, and the demand for higher-quality leased-living experiences is growing on a scale we haven’t seen before.”
A truly unique alternative to the typical rental experience, Avilla Homes neighborhoods feature single level, detached homes for lease in a gated enclave. The one, two and three-bedroom floor plans feature private entrances, outdoor patios and backyards, along with high-end finishes such as 10’ ceilings, granite/quartz countertops, stainless steel appliances and more. The pet friendly communities offer the perks of neighborhood living with optional garages, resort-style pool, beautifully landscaped recreation areas, and even an electric car charging station – all maintained by a professional management company, without mortgage payments or HOA fees.