Liya Mo, Vice President of Acquisitions and Originations, and Edward Platts, Analyst, attended Bisnow's Southeast Single-Family Rental, Build-to-Rent, and Master Planned Communities event
in Orlando, FL on October 26th, 2023. Liya Mo was a speaker at the event and shared her current views on land acquisition, new market expansion, and tailoring the design of Lafayette’s Build for Rent (BFR) communities to residents' evolving needs. Below are some of the key highlights:
🏡 Strategic Shift in our Acquisition Strategy: Lafayette has adjusted its acquisition strategy from buying finished homes to buying land to align with market conditions which have changed a lot since Lafayette started investing in BFR communities in 2019: cap rates on finished homes went from 6% in 2019 to 4% in 2022 and are now back up closer to 6%. This has pushed Lafayette to stay nimble and spend more time on land deals in 2023 for which 7% cap rates are achievable.
🏡 New Market Underwriting: When considering expanding to a new market, Lafayette places more emphasis on understanding the multifamily supply and demand dynamics of that market. Beyond traditional underwriting metrics such as income, population, and crime rates, Lafayette recognizes the potential multifamily oversupply in over a dozen markets, thus taking a holistic approach to ensure strategic market entry.
🏡 Adapting Community Design: Thanks to our direct feedback loop and constant collaboration with Brandywine Homes USA, Lafayette's property management affiliate, we continuously adapt the specs and design of our communities to evolving tenant needs. Notable enhancements in our BFR communities include backyard fences (catering to more than 50% of tenants who have pets!), lawn maintenance services, smart home packages, and washers/dryers.
#sfr #btr #singlefamily #buildforrent #realestate #residentialrealestate🏡📈
National Sales & Business Development Manager, Interior Design
1moCongratulations