Charlotte, North Carolina-based Crescent Communities is taking the next step in its partnership with New York City-based investor Pretium Partners with the groundbreaking of two new build-to-rent communities: Harmon Ballantyne and Harmon Five Points, both located in Charlotte.
The Crescent-Pretium Partners’ joint venture, formed in 2021, intends to invest $1 billion in new single-family build-to-rent communities across 14 target markets in the Sun Belt. Beyond Charlotte, the partners have also started two developments in Charleston, South Carolina.
Harmon Ballantyne will consist of 60 townhomes, while Harmon Five Points will offer 76 townhomes. Homes in both communities will range from three to four bedrooms in size, each with private garages, driveways and balconies. Pre-leasing for Harmon Five Points is expected to open in winter 2022 and for Harmon Ballantyne in fall 2023.
“Harmon Ballantyne and Harmon Five Points bring infill housing options to Charlotte providing its residents the opportunity to lease brand new homes in highly sought-after neighborhoods without the long-term commitment and high upfront cost of homeownership,” said Tony Chen, managing director of single-family build-to-rent at Crescent Communities, in a press release.
Crescent has also announced its recent traditional-style multifamily activity in Charlotte: upcoming development of two new projects, Novel Mallard Creek and Novel University Place; the groundbreaking of Novel Ballantyne; and the sale of Novel LoSo Station to MAA.
The popularity of single-family build-to-rent communities has exploded in recent years. More than 25,000 single-family rentals are under construction in the U.S., according to Yardi Matrix data. Rents and occupancy rates are high and new deliveries are expected to exceed last year’s record high of 7,705 by the end of the year.
“Given the long-term shortage of single-family homes and the high cost of homeownership, SFR occupancy rates are projected to remain high into the future,” said Paul Fiorilla, author of Yardi Matrix’s report on the single-family build-to-rent market.
