Haven Realty Capital added to its single-family rental (SFR) portfolio with the $18.5 million acquisition of Ashwood Place, a newly constructed, 60-home dedicated rental community (DRC) in the Chicago suburb of Naperville, Illinois. CBRE marketed the property on behalf of the seller.
Ashwood Place is one of the first DRCs in Chicagoland. Similar to a typical single-family housing subdivision, a DRC differs in that each of the homes caters solely to renters. DRCs, also commonly referred to as “build-to-rent,” are growing in popularity, particularly among those who cannot afford to purchase a home, but desire the benefits associated with living in a less dense suburban single-family environment with a neighborhood feel, extra living space, backyards and garages.
Each of the brick- and vinyl-clad, single-story residences at Ashwood Place feature a two-bedroom, two-bath floorplan with 1,350 square feet of living space. Interior amenities include central air, cathedral ceilings, granite countertops, stainless steel energy efficient appliances, washer and dryer, wood-style flooring and a two-car attached garage. The community was 95 percent leased at closing.
“The size of rental households is increasing while the size of traditional apartments is shrinking, which has contributed to the increased demand for DRCs,” said Haven Realty Capital managing principal, Sudha Reddy. “Ashwood Place offers families either moving out to the suburbs from the city or downsizing from a larger single-family home an affordable rental option within one of the top school districts in the Chicagoland area. These families have the benefits of living in a more spacious single-family home, without the cost of home ownership in a community that mirrors the model of an apartment building with professional management.”
This is the second acquisition of a DRC in the Chicago Metro for Haven, which manages a $500 million portfolio of SFR and traditional multifamily assets throughout the United States. Haven acquired its first DRC late last year with the acquisition of Manors at Brookmere, a 108-unit townhome community in Matteson, Illinois. The California-based investment firm entered the greater Chicagoland market in 2013 where it aggregated approximately 270 single-family rental homes valued at $56.7 million across the Chicago suburbs.
Haven is an active player in the SFR industry having recently closed on the first phase of a $133 million acquisition of six DRCs in Atlanta. It plans to close on several new communities located primarily in the Midwest and Southeast in the next 18 months.
“With its great school systems, vibrant downtown, and overall quality of life, Naperville has become one of the most popular communities in the Chicagoland area and as a result has pushed the average housing price to nearly $500,000,” said CBRE’s Justin Ross. “This has priced out many of those who want to raise a family or retire there, but do not want to live in a traditional apartment building. DRCs are growing in popularity among renters, not just in Chicago but throughout the United States.”
Other members of the CBRE team included Matt Ishikawa, Bill Howe and David Guenther.