TruAmerica Multifamily Dives into Red Hot Build-for-Rent Market  

By Ted Jackson

TruAmerica Multifamily has launched a build-for-rent (BFR) development division to build townhome and single-family rental communities in suburban submarkets where there is a high degree of synergy with TruAmerica’s existing vertically integrated multifamily platform. CEO and founder Robert Hart has brought in veteran BFR executive Mitch Rotta as senior managing director to lead the new initiative.

The initial roll-out of TruAmerica’s in-house BFR platform will be in high-growth Southwest, Southeast and Texas suburban markets, which represents approximately 60% of the firm’s $16.1-billion multifamily portfolio.

“The changing demographics of the U.S., the ongoing affordability-challenges and credit qualification standards of homebuying for Americans has led to a steep decline in homeownership rates,” said Hart, adding though that the desire by consumers to own their own homes remains as high as ever.

“BFR is a natural extension of our workforce housing platform because it complements the same demographics that make up our Class B multifamily strategy.  It provides yet another housing option for working-class Americans who can’t afford to own a home or would just prefer to rent.”

Rotta has been involved in the burgeoning BFR space for the majority of his career, most recently with Tricor Homes, a leading build-for-rent construction operator and builder.