Dive Brief:
- Earlier this week, Denver-based multifamily investor and operator Avanti Residential announced it has formed Avanti Residential Development to execute ground-up multifamily and build-to-rent developments in core and emerging markets across the country, according to a news release.
- Avanti brought aboard Kyle Henderson, who has over two decades of multifamily experience at firms including D.R. Horton and Wood Partners, to lead the company’s expansion with a focus on site selection, design and operational efficiencies.
- Avanti has 9,363 units across 40 properties in Colorado, Kansas, Missouri, Arizona, Florida, Utah and Tennessee. “This move not only strengthens our presence in existing markets but also serves as a catalyst for growth into new high-demand regions,” president and CEO Christian Garner said in the release.
Dive Insight:
Garner said the firm’s strategic expansion enhances Avanti's ability to execute ground-up multifamily and build-to-rent developments.
“By leveraging our market insights and operational expertise, we can create high-quality assets in strategic locations while enhancing value for both our investors and residents,” Garner said in the release.
Henderson noted the firm’s strategic alignment between his team's development capabilities and Avanti's established investment platform.
"By bringing development in-house, we can drive greater synergies, optimize project execution and offer investors a broader range of partnership opportunities in high-growth markets,” Henderson said in the release.
Avanti announced its move into development at a time when companies are struggling to commence new projects. Ryan Davis, CEO of Witten Advisors, a Dallas-based firm that provides apartment companies with advisory services, predicts starts will bottom out in 2025.
“The pure market-rate deal right now just really doesn’t make sense from a financial standpoint,” Davis said.
However, well-heeled firms, including the REITs, see an opportunity to start projects this year and deliver into a market with little new competition in 2026 and 2027.
“You're definitely going to see less supply with the backdrop of very strong relative affordability and hopefully still get demand,” said UDR President, Chief Financial Officer and Chief Investment Officer Joe Fisher on the Highlands Ranch, Colorado-based REIT’s fourth-quarter 2024 earnings call in February. “And so there is an expectation of outsized growth in those years, which obviously gets developers excited.”
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