Concord
Concord Townhomes is a 42-unit Build-To-Rent project located in Beaumont, Texas
Beaumont is characterized as a blue-collar market with a limited supply of high-quality housing. The unique aspect of this project is that the landowner sought to collaborate with Onu Ventures to develop a rental community without having to make an upfront financial investment. As a result, the structure of the project was designed to allow the landowner to ultimately become the owner of the community.
- Design and Cost Efficiency: Onu Ventures took on the responsibility of designing the rental community, including individual floor plans. The design was aimed at maximizing density while ensuring that the homes are cost-efficient. This is an important strategy in making the project financially viable and affordable for renters in the local market.
- Equity Financing: Onu Ventures managed to secure all the development and construction equity needed for the project. This allowed the landowner to contribute the land as their equity contribution. This type of arrangement is common in real estate development, and it minimizes the need for the landowner to provide cash upfront, making it easier for them to participate in the project.
- Rezoning Success: Onu Ventures successfully navigated the rezoning process for the project. Rezoning is often required to ensure that the land can be used for the intended purpose, in this case, a rental community. This step can involve working with local authorities and communities to gain the necessary approvals and permits.
- Scheduled Delivery: The project is on track to deliver the 42 rental units in the third quarter of 2024. Meeting the scheduled delivery timeline is essential for both financial planning and fulfilling the housing needs in the area.
- Rental Vouchers: The city has granted rental vouchers for the project, which contribute $1,477 for renter vouchers. This financial support helps lower the risk associated with the project and makes the rental community more affordable for prospective tenants.
Concord Townhomes appears to be a well-structured project that addresses the housing demand in Beaumont, Texas, particularly for the blue-collar market. The collaboration between the landowner and Onu Ventures, along with the use of rental vouchers and cost-efficient design, has likely contributed to the success of this venture. It not only provides quality housing options but also offers a path for the landowner to become the owner of the community, potentially benefiting from the long-term rental income and property appreciation.