A Los Angeles REIT is headed to South Texas for its latest build-to-rent community.
Pacific Coast Capital Partners has announced plans for a 195-home single-family rental community in Cypress, a fa-northwest suburb of Houston. Meadows at Telge is set to go up on a 44-acre tract on the southwest corner of Grant Road and Telge Road, the Houston Business Journal reports.
Aside from details about the homes’ granite countertops and the community swimming pool, PCCP declined to disclose standard information about the project such as the estimated cost or anticipated rental rates. Last year, PCCP formed a $1 billion joint venture with the California State Teachers’ Retirement System focused on build-to-rent communities in primary and secondary markets across the country.
“PCCP plans to bring a high-quality, single-family built-for-rent community in a strong, well-located area of Cypress, Texas,” said VP Andrew Barbakoff in a press release. Technically, Cypress is considered an unincorporated community within the extraterritorial jurisdiction of Houston. Though it doesn’t have its own city government, it’s said to have the largest volunteer fire department in the United States.
Without traffic, Cypress is more than a 30 minute drive from Houston’s city center, but this Northwestern corridor of the Houston metro has become a particular hotspot for build-to-rent developments.
In June, Howard Hughes started work on building Wingspan, a 263-unit build-to-rent neighborhood in Cypress. In March, Camden Property Trust bought 16 acres off southern Grand Parkway for a 240-home for-rent neighborhood. And at the very beginning of this year, Christopher Todd Communities of Mesa, Arizona, acquired nearly 19 acres in the Cypress area to build — you guessed it — a single-family rental community.
Build-to-rent ventures have been popping up all over Texas as the state’s housing market becomes less and less affordable for buyers. Low-density suburbs like Cypress have traditionally been buyer’s markets, but mortgage rates and tight inventories have driven buyers looking for big backyards back into the rental market.
Nationwide, developers built a record 6,740 units in single-family for-rent communities in 2021, according to rental platform RentCafé, which predicted that number would more than triple this year.
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— Maddy Sperling