Affordable housing crisis Real estate company Build-to-Rent answers the call
RIVERVIEW, Florida., March 21, 2022 /PRNewswire/ — ERC Communities announced today that it is launching its Zephyr Hills location to begin development of a prefabricated single family rental home community. This community will respond to the affordable housing crisis by offering families a 25%-35% reduction in rental costs in a safe and sustainable environment, inside a brand new 3 bedroom/2 bath home over 1,300 square feet that they can call home.
According to a recent Fortune article, “The housing shortage has forced many potential buyers to move into rental properties as they search for their next home (and often find themselves on the wrong end of a bidding war). This option, however, becomes more and more expensive… For the National (Rental Price) Index to move into double digits requires incredible growth in rents everywhere, and that is exactly what has happened.”
The innovative approach of FloridaERC Communities’ approach is to bring together years of development and housing experts. “ERC Chairman and CEO Gerald Ellenbourg had a bit of an ‘aha moment’ when ERC discovered the most promising parcel was zoned for manufactured housing,” he told Business Insider Florida. “We provide the most cost effective and viable solution by offering single-family, custom-built homes—rental communities that have incredible benefits for both investors and residents,” Ellenburg said.
Inflation is hitting families hard and housing insecurity is one of the main causes of stress. ABC News reports, Jaime Rossthe head of florida Housing Coalition, he calls the shortage of affordable housing an “epidemic”. “Working families are falling into homelessness,” Ross said.
ERC Communities plans an initial development of 216 units in Zephyrhills, Floridaa push Tampa suburbs and plans to expand its manufactured home communities across Florida then a variety of other states, targeting a critical mass of over 5,000 rental units with cumulative rental income above $100 million. The company is financing this development plan with Regulation A, Regulation D and equity from private investors combined with conventional construction debt financing. And he’s pretty proud that their developments qualified for the federal agency’s prestigious permanent mortgage financing with Freddie Mac and Fannie, provided by Walker & Dunlop, one of the nation’s largest mortgage bankers.
About ERC Communities:
ERC was founded as a pioneering build-to-rent (B2R) real estate development company, wholesale mini-neighborhoods of affordable single-family homes. Led by a senior executive experience of over 100 combined years and $1 billion in construction experience, the company is at the forefront of the emerging B2R boom. Using innovative internet-based crowdfunding through the Regulation D and Regulation A+ offerings, ERC will provide investors with the opportunity to invest in B2R housing. ERC plans to satisfy pent-up demand from institutional investors for new rental housing, while meeting the need of millennials and others for single-family living without the barriers of homeownership. The company will initially build in Florida, later spreading to other southeastern states. For more information, join our webinar or visit www.erchomes.com
Markings on the front
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SOURCE ERC Communities