Jim Jacobi, President of Parkland Communities Inc. and Parkland Residential, joins the Atlanta Real Estate Forum Radio podcast to discuss new build-to-rent properties and the goal to satisfy the industry’s “missing middle.” Jacobi joins hosts Carol Morgan and Todd Schnick for the All About Real Estate segment and hints at exciting 2022 projects.
Jacobi runs a number of companies in the new home space including Parkland Communities, a multi-faceted real estate development firm: Parkland Communities, a build to rent company and Alliance Engineering + Planning that focuses on engineering and surveying. Jacobi is a titan within the Atlanta real estate industry and with his recent expansion into build to rent has become an industry pioneer.
This year has already been a bountiful year for both Jacobi and Parkland Communities Inc. with the incredible success of Sweetwater Springs and 1,900 lots currently in the works including almost 1,000 lots in active process and 917 attached to future communities.
“We are really looking forward to 2022. It’s going to be a really good year for us,” said Jacobi.
A current exciting endeavor for the company is the move towards build-to-rent properties that is essential for consumers searching for affordable accommodation in the ongoing housing inferno. Otherwise known as the “missing middle,” the lack of affordable housing on the market has proved to be an increasing issue as home inventories continue to decrease. Parkland Residential focuses on satisfying the “missing middle” market and Jacobi’s first build-to-rent venture was Sweetwater Springs in Lawrenceville.
The unique stacked townhouse product featured at Sweetwater Springs allows the company to build affordable units while increasing the number of entry-level products available on the market. The product features a one-car garage, hard-surfaced cabinets, stone countertops, LED lighting and LVP flooring in all the main rooms. The company mainly focused on providing luxury upgrades in contrast to the current trend of using builder-grade finishes.
Another trend in build-to-rent properties is to decrease the square footage of the product to increase the number of units. Jacobi states, “We’ve gone larger. We have a three-bedroom townhouse that is 1,958 square feet and a two-bedroom townhouse that is 1,630 square feet,” said Jacobi. “I wanted to really give good livability in these units.”
The Lawrenceville development proved very successful after all 58 units were fully preleased within 90 days of completing construction on the first building. The unexpected response raised the rent by 10% and set the precedent for Parkland Residential and future build-to-rent properties. By December or January, Jacobi shares that the goal is to complete construction, move residents in and stabilize the rent for the community.
Build-to-rent was an unpopular approach to real estate in 2018 when the idea of Sweetwater Springs first came about. Three years later, build-to-rent has gained rapid popularity as the pandemic continues to have drastic effects on the real estate market. Moving forward, Parkland Residential’s goal is to launch build-to-rent products in a much more substantial manner to match market demand.
“The response really proves the surplus of demand that exists for missing middle housing. Before we opened, we had a waiting list of 50 people. Today, we are fully leased and have a waiting list of over 200 people,” shared Jacobi. “We’re very encouraged that our product and our pricing to market is spot on.”
The current industry trend is seeing is buyers and renters trading in urban environments for suburbia. Jacobi shared that after the initial pandemic lockdown, Sweetwater Springs gained three residents from New York City through virtual tours and leasing. The trend already existed, but the pandemic acted as a force magnifier and caused the trend to escalate, leading to the current strong housing demand. Sweetwater Springs has also seen homeowners take advantage of inflation by selling properties and opting to rent.
Jacobi announced that all future Parkland Residential build-to-rent developments will feature the stacked townhouse product following the success of Sweetwater Springs.
“We are very encouraged with these new communities and looking forward to making some good announcements next year,” said Jacobi.
To learn more about Parkland Residential and Parkland Communities, visit the company website to view contact information, communities and more.
Georgia Residential Mortgage Licensee, License #22564. NMLS ID #6606. Subject to borrower and property qualifications. Not all applicants will qualify. Parkland Communities Inc. and New American Funding are not associated. Click here to view the terms and conditions of products mentioned during the show. Corporate office 14511 Myford Rd., Suite 100, Tustin, CA 92780. Phone: (800) 450-2010. (October/2021)
New American Funding is a family-owned mortgage lender with a servicing portfolio of over 123,000 loans for $30.4 billion, 198 branches, and about 3,100 employees. The company offers several niche loan products and has made Inc. 5000’s list of Fastest-Growing Companies in America six times. It has a state-of-the-art career training facility and develops innovative technology, including the GoGo LO mobile application. For more information, visit www.branch.newamericanfunding.com/Atlanta.
The Atlanta Real Estate Forum Radio “All About Real Estate” segment, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.