Homz Secures $50M in VC Funding to Build Rentals

Frisco-based development company Homz recently secured $50 million in pre-seed funding from investors including Nanban Ventures, a Dallas venture capital firm. Homz aims to develop master-planned apartment communities across the southeastern United States.

Homz will use the funds to develop 50 communities in high-growth areas over the span of five years, the Dallas Morning News reported. The company expects each community to be a $140 to $170 million investment held over 25 years, consisting of multiple apartment complexes and single-family rental homes. It plans to address the nation’s lack of attainable housing supply by reducing costs through city partnerships and standardizing products across markets. It also hopes to prioritize development centered around wellness and sustainability.

Eco-friendly multifamily units have been on the rise in the United States, according to data compiled by Rent Café. Since 2008, construction on environmentally friendly apartment complexes has increased by 300 percent. Young buyers have also become increasingly expectant of brand consciousness. Research firm First Insight found that 73 percent of Gen Z consumers and 68 percent of Millennials are willing to pay more for sustainable brands opting for as much as a 10 percent premium for sustainability.

The Patel family, who have been in the hospitality industry for more than 50 years and owned more than $1 billion in real estate, founded Homz in 2019, according to the company’s website.

Developments will feature amenities including clubhouses, pools, athletic fields, playgrounds and urban farms.

Nanban Ventures led the pre-seed funding round, which also included contributions from individuals and families.

– Brandon Sams