The $2.5B plan to lure millennials into new houses
A development team has a $2.5 billion plan to lure millennials — and some Gen Xers — out of amenity-filled apartments and into thousands of new houses across the country.
Miami-based Partners Global City Development and Brazil-based Leste investment management firm want to construct 10,000 new houses and townhomes in the build-to-rent space, The Real Deal has learned.
The plan is on an aggressive timeline, with the venture aiming to build the houses in 30 communities over the next five to seven years.
Those communities will be under the Cassa Life brand, and will be geared toward renters between 25 and 44. Many of them are currently living in high-rise buildings in their cities’ downtowns, paying high rents for small spaces, said Brian Pearl, principal of Global City Development.
The target resident wants to move away from micro and co-living product, and is not looking to buy a home, either because they prefer renting or they’re priced out of the homebuying market.
At Cassa Life communities, residents would be paying the same or less in rent for double the space. “As people get married or get pets, have children … there’s a lot of life events where people need more space,” Pearl said. “The problem with urban living today is a lot of units are getting smaller and smaller.”