Redwood Living, Inc. (Redwood) is known in the multifamily apartment rental industry for its single-story neighborhoods of apartment homes located in suburban markets. But what makes it a good option for real estate investors looking to diversify their portfolios?
In the past few years, the term “build to rent” (BTR) has become an increasingly popular segment of the real estate investment industry. However, there are still relatively few BTR properties when looking at the housing market in general, which makes it crucial to choose the right BTR investment project. In June 2021, Hunter Housing Economics stated that of the homes built in the United States, just 6% were classified as BTR. In the next 2 years, the real estate consulting firm expects the number of BTR homes built each year to double.
In the meantime, the current housing shortage is causing the demand for rental housing to continue its increase. In an article from The Counselors of Real Estate, it was reported that “the aggregate housing shortage is now over 2 million units.” With this high demand for rental housing, rental rates have risen consistently—according to the Harvard Joint Center for Housing Studies, “asking rents for all professionally managed apartments spiked in the third quarter [of 2021], led by a 13.8 percent jump for units in higher-quality buildings.”
For BTR companies, there is ample opportunity to fill this gap in the housing market, and in the case of Redwood, they have had their sights set on expanding throughout suburban America for quite some time. Redwood’s signature building and property management strategy has always fallen into the category of BTR, even before the term came into popularity. For 30 years, we have been continuously delivering results from our proven formula, no matter where our neighborhood projects are located.
Redwood's apartment homes give residents the feel of home without the stresses of ownership.
Large living spaces and a neighborhood setting make these homes incredibly popular with renters.
Residents can enjoy private entrances and having their own private, attached garage.
If you’re looking for a passive investment to diversify your portfolio, Redwood equity investments offer that opportunity. With Redwood’s model, investors can benefit from a more predictable investment and income stream, allowing them to preserve capital while investing in multifamily projects. Plus, investing in a high-growth asset class with an organization that has over 30 years of experience perfecting the development process can bring peace of mind. Redwood handles the stresses of property management, so investors don’t have to stress about day-to-day operations.
Over the past 30 years, Redwood’s multifaceted development arm successfully completed over 122 development projects across seven states. This included overseeing the development, construction, debt placement, and leasing of the units up to stabilization with a 97% physical occupancy rate across the portfolio as of April, 2022. As of December 2021, Redwood has successfully secured permanent financing on behalf of the owners of over 100 Redwood apartment neighborhoods upon stabilization of each property. For many projects, the net proceeds from the applicable project’s permanent financing was sufficient to return to investors a majority of the initial preferred equity that was invested in the project.
Redwood is an innovative, 100% ground-up construction, development and property management company. Since 1991, Redwood has been reinventing the traditional apartment rental experience. Instead of focusing on the traditional apartment rental strategy of building as many units as possible into the available space, our goal has always been to give renters a true home.
Each Redwood apartment home is found in a highly desired neighborhood setting and laid out in one of our signature open floor plans, all offering two bedrooms, two bathrooms, an attached garage and a dedicated street address. Our residents are able to enjoy all the comforts of a single-family home—a spacious kitchen with a full pantry, full-size appliances, upgraded finishes and features, washer and dryer hookup, and more—without being subjected to the stresses of home ownership.
Redwood’s signature build-to-rent strategy is distinctive in the industry and differentiates us from the typical real estate investment. Where many developers build a rental property and sell it, Redwood has a more holistic approach: we believe the only way to ensure the quality of home our residents deserve is to stay involved in each Redwood-managed neighborhood for its lifetime.
From start to finish, our highly skilled and impeccably trained in-house staff drive building projects to close efficiently while focusing on the details that make each Redwood Neighborhood a remarkable place to live. Once each development is completed, our leasing and management experts take over, using their highly rated customer service skills to attract and retain residents from the lease-up stage and beyond. Our commitment to excellence also extends to our methods of maintenance in our neighborhoods—from exterior care of landscaping and driveways to the physical care of each home. We ensure our Redwood residents can enjoy the advantages of living in a high-quality home for as long as they’d like.
Part of the Redwood Advantage is the ability for each resident to customize their living experience, an offering that differentiates us within the industry. Residents can choose between our larger than industry average floor plans, and they can also choose a lease term that works for their situation. While our standard lease terms range from 6-15 months, we also offer residents a 24-month lease option—something other property management companies have not explored historically. Because of the elevated experience and choices we provide residents, Redwood can charge rental rates that range from $1,300 to $2,500, with an average of 26 months in resident tenure.
As of March 2022, Redwood has changed its offering approach, to Rule 506C, allowing the company to take investments from verified accredited investors. Redwood’s dedicated Investor Relations team is speaking with prospective investors daily, and is happy to talk through upcoming deals, our standard deal structure, and if Redwood would be a good fit. Fill out our contact form to get the process started.
Interested in an investment opportunity with Redwood but not sure which deal is the right fit for you? Fill out a contact form or schedule an introductory call to work directly with our dedicated Investor Relations team.
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