Good + West barrels into Texas build-to-rent market
“We felt that build-to-rent was a segment of the market that was underserved in Texas.”
Another developer is entering Dallas-Fort Worth’s build-to-rent market.
Good + West Residential plans to spend $400 million building rental home communities over the next four years, the Dallas Morning News reports. The Austin-based company has two projects underway in North Texas under its Perch brand of rental homes, plus one in Denton and another in Fort Worth.
The company expects to kick off construction on the Fort Worth Perch community this spring, and the first units could be ready by summer 2024. Meanwhile, the firm’s Perch project in Denton began construction in April, and pre-leasing will begin in the next two months.
Developers from all over the country threw their hats into Texas’ built-to-rent markets in 2022. California’s Banyan Residential said it will build a 34.4-acre community of single-family rental homes in rural Central Texas starting in January. A couple of months later, Dallas-based Invitiation Homes launched a $750 million joint venture with Boston-based Rockpoint Group to develop high-end build-to-rent communities in North Texas.
More recently, Los Angeles-based REIT Pacific Coast Capital Partners and Arizona’s Empire Group of Companies and NexMetro Communities hopped on the bandwagon as well. In fact there was so much out-of-state money funneling into the lone star state for build-to-rent ventures, it provoked the ire of the Texas Association of Builders.
Good + West co-founder and Dallas native Elizabeth Good thinks there’s plenty of room in the market.
“We felt that build-to-rent was a segment of the market that was underserved in Texas,” Good said. “We think it’s just in its infancy in the Texas markets and decided that with the capital behind it, it would be a good focus for us.”
Good and fellow co-founder David West met as developers with Austin firm Cypress Real Estate Advisors. West grew up in England but lived in North Texas for a couple of years after attending Texas Wesleyan University in the late ’90s.
The two have a current construction pipeline of more than $150 million, in partnership with a family office in Dallas that they declined to name. They raised enough cash to work on three-to-five projects per year over the next few years.
— Maddy Sperling