A rental home developer is planning to build thousands of new properties in the Southeast after a $500 million commitment from an investor.
Miami-based Quinn Residences is set to close on the investment by the end of the second quarter, company co-founder Douglas Caraballo told The Real Deal. The money is from an unnamed sovereign wealth fund.
The new equity will give Quinn about $2.5 billion worth of purchasing power to build 8,000 homes in the next four years in Florida, Georgia, Tennessee and North and South Carolina, Caraballo said. It comes about a year after the company raised $100 million for new projects.
Billions of dollars is being invested in so-called build-to-rent housing, as home prices skyrocket and renters leave cities, opting for more indoor and outdoor space.
Quinn’s homes range from 1,700 square feet to 2,000 square feet, with two to four bedrooms and smart home features. Caraballo said his company plans to hold the communities for “as long as possible.” He predicts Quinn’s portfolio could grow to 15,000 homes by 2028.
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The target renters are working families between 30 and 50 years old, who are “renters by choice” and in many cases have the flexibility to work from home, Caraballo added. Rents range from about $1,250 a month to $3,000 a month.
The company buys land on master-planned communities and is currently working on 11 deals.
So far, Quinn has more than 550 homes in six communities under development or being leased. Three of the completed projects are in Durham, North Carolina; Savannah, Georgia; and Jacksonville, Florida. Three communities in Greenville, Spartanburg and Bluffton, South Carolina are in development.