The Orange County developer that’s making a big bet on the Ziggurat property in Laguna Niguel is looking to develop 171 build-to-rent townhomes in Austin, Texas.
Jeff Pintar, the CEO and founder of Pintar Investment Co. LLC, told the Business Journal that his company bought 51 acres in the Texas capital for a residential project that could be under construction later this year.
The project, according to investor documents on the Pintar Investment Co. website, is called The Lane.
The San Juan Capistrano developer closed on the property in January for $10 million, according to a Pintar Investment Co. presentation about the build-to-rent project. Pintar noted that his company is splitting the land into two parcels: one for 38.5 acres and the other at 12.5 acres.
Pintar told the Business Journal his company is wrapping up the entitlement process for the 12.5 acres at the front of the property, which is located off Howard Lane in Austin.
The 12.5-acre portion of the property would be where Pintar builds the 171 townhomes and, according to an investor presentation, could cost nearly $60 million to be developed.
The future use of the remaining 38.5 acres could be sold to a homebuilder, according to Pintar.
Pintar said construction on the first phase of the build-to-rent townhomes could start as early as late 2025, pending the completion of the entitlement process.
“This part of Austin has been growing exponentially,” Pintar told the Business Journal.
The Build-to-Rent Trend
CBRE describes build-to-rent as a residential development “helping to alleviate the nation’s housing shortage.”
A developer builds a neighborhood of single-family houses but rents them out to tenants as if they are apartments, as opposed to selling them to potential homebuyers.
A build-to-rent, or BTR, neighborhood typically has 50 or more houses or townhomes that are professionally managed.
The neighborhoods, per CBRE, “have all the characteristics of single-family homes but are built for renters who want features not typically offered by multifamily properties.”
“BTR is a particularly attractive option for millennials, who are reaching the prime age for major life milestones like child-rearing but can’t afford homeownership. BTR also is an appealing option for empty nesters who want the financial flexibility and lifestyle ease of renting versus owning,” according to a recent CBRE report on build-to-rent neighborhoods. “Both cohorts are driving strong demand for large BTR developments.”
Point2Homes.com, an online rental platform for single-family residences, released a report earlier this year and found Texas leads all states in build-to-rent developments in the pipeline.
Nearly 22,000 out of 110,000 build-to-rent projects active nationwide are in the Lone Star State.
California ranked sixth on the Point2Homes.com list, with about 4,400 build-to-rent developments in the pipeline.
