Micro Texas Rental-Home Builder Scores $12.5M Financing

Rental community developer Casata has obtained $12.5 million in joint venture equity financing for a residential project in San Marcos. The development will consist of 210 for-rent, freestanding “micro homes” of modular construction. Homes will come in one- and two-bedroom formats and range in size from 400 to 1,100 square feet. Construction is expected to last about 21 months. Duke Dennis of Marcus & Millichap Capital Corp. arranged the equity financing on behalf of Casata.

The homes will be built on 25 acres of land, ranging from 400-1,100 square feet with one to three bedrooms for rent from $1,175-$1,800.

Community Impact reported that Casata’s Forrest Hardy added, “We’re in between tiny homes and regular homes. They’re more efficient, and they’re independent, physical homes. They are attainable housing, so they’re housing for the middle class, and it’s a really nice alternative to apartment homes.”

90% of the homes will be long-term rental units, while the remaining 10% will be short-term rentals listed on Airbnb and Vrbo.