In the US, Trei Completes its Second Residential Project and Starts Another Two Rental Apartment Developments
Trei Real Estate GmbH (“Trei”), an international developer and asset manager for residential and retail real estate, just completed its second residential development in the United States. The finished apartments, called Atlantic Beach House and located north of Charleston, South Carolina, provide 224 rental units with a combined residential area of about 19,400 sqm. The investment volume added up to c. 59,3 million euros. The occupancy rate at the end of the two and a half year construction period is currently 65 percent but rising swiftly due to strong demand. In a parallel move, the company kicked off construction of two apartment projects, one in Jacksonville, Florida, and the other in Cary, North Carolina, with a combined investment volume of c. 147,0 million euros, which will deliver a total of 590 rental units by the time of their expected completion in 2024. Trei had completed its first residential project in the United States in September 2021, involving a rental property of 359 apartments in Charlotte, North Carolina.
Pepijn Morshuis, CEO of Trei Real Estate, commented: “The economic situation in the United States is defined by high inflation rates but also by fast-growing residential rent rates. The latter is having a favourable effect on our developments. We were able to keep pushing forward with our development activities in the United States in 2022: In addition to the property completed in Charleston and the developments we just started in Jacksonville and Cary, we are in the process of developing another five multi-family houses that we expect to complete between 2023 and 2025. Together, the five projects add up to around 1,630 residential units. The sum total invested amounts to 525 million euros.”
The Atlantic Beach Houses complex now completed in Charleston consists of three buildings of four floors each, and provides apartments of two to three rooms. Incoming residents benefit from a salt water swimming pool, an extensive park area, a dog park and a fitness centre. A special highlight is the unobstructed view of the adjacent marshlands and the short distance to the sea, which is conveniently accessible by bicycle. The commute to downtown Charleston takes about 10 minutes by car.
In Jacksonville, a city with a population of about one million in the far north-east corner of Florida, construction of a four-storey multi-family house with a rental space of 25,300 sqm has started. In addition to 290 rental units, it will feature a pool, a fitness centre, two inner courtyards and a dog spa. The development will also have easy access to the River City Marketplace retail centre. The inner city of Jacksonville is about 15 minutes away by car.
In Cary near Morrisville, North Carolina, the construction of three buildings of four or five floors each has started. The project will deliver 300 rental apartments with a combined rental space of around 27,800 sqm. On-site amenities will include a coworking space, a fitness centre, a swimming pool, walking trails, a club room and a dog spa. Nine food markets are located within a radius of less than two miles.
Aside from the aforementioned residential developments, Trei is planning further stateside projects, the focus being primarily on the south-eastern United States. Morshuis added: “The US rental apartments market is highly attractive for us as developers. Homeownership has traditionally played a dominant role in the United States, with two in three Americans owning their homes outright. But the upward trend in real estate prices is driving demand for rental apartments, especially in the south-eastern states. Cities like Jacksonville, Charleston or Cary, while known to have a high standard of living, are still relatively affordable. In fact, it was the region with the largest transaction volume and the highest total rate of return in the entire US market for multi-family houses last year.”