Welcome back to the CityScout Opportunity Drop - your weekly report on new development projects to drive your business. 

Today we have a large national BFR developer planting their first flag in the market. Like most of the posts we do, we're excited to be the first to report on this project due to our edge in surfacing development opportunities and insight. 

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As always, these posts are researched and written by humans (Andy on the team!) so let us know any feedback. Let’s get right into the article.

Lafayette Real Estate enters the market with a major rezoning in Antioch

This is the first entry into the Nashville market by Lafayette Real Estate, a large national built-for-rent developer and property owner with more than a billion dollars of assets under management. Not only is this a big upzoning density-wise, it marks another national operator placing a real stake in the MSA and, more importantly, signals where BFR deals still make sense.

People usually focus on schools and the more traditional suburban pockets for BFR deals. This site sits in the Antioch / Bell Road corridor, which historically hasn’t been known for that. But at the right basis, deals still pencil. And one of the biggest value drivers here is simple: every townhome includes a garage, a top amenity that materially improves absorption and renewal rates for rental townhome product.

Because Lafayette is new to the region, this is probably one of the best opportunities this cycle for local lenders and brokerage teams to build early relationships. A forward sale is almost certainly on the table as an option, and they will be evaluating those opportunities now. Architecture or engineering opportunities are likely limited given the specificity of the SP and Lafayette’s in-house groups. A local homebuilder might still have a path in, but the biggest wins here will be for anyone who can establish a relationship with a major national entrant while they are still setting up shop.

Even if you missed this entitlement phase, getting in front of Lafayette now is a smart long-term play.

This property has been under contract since January of last year — so it’s taken a while to work through the process. Advertised price is $3,500,000, but I would imagine it trades for a little less. At list price, it’s about 25k per unit in Antioch, which this author considers to be a fair deal. https://go.realtracs.com/1dIO4Dl

1. Local lenders
They are new to the market and will need capital partners.
Get in early while they are still selecting banking relationships. Would be a great opportunity for a regional bank to get in front of them.

2. Brokerage teams (investment sales and land/future forward sales)
Forward sale conversations for BFR are usually locked in early.
If you want a shot, you need to be in the room now.

Moderate Opportunity

Local homebuilders
There may be a path on vertical construction depending on Lafayette’s internal pipeline and capacity via Marquis Homes.

Lower Opportunity

Architects and civil engineers
SP is already tailored. Dale & Associates is the applicant.
Vertical design is likely controlled by Lafayette’s internal BFR teams. However, there is definitely a great opportunity to meet this group and be part of the team for their next project.

Lafayette is one of the earliest and most experienced operators in the institutional SFR and BFR space. https://lafayette-re.com/

Platform Stats:
• More than $1 billion in gross AUM
• Over 5,000 single-family homes (owned or under development)
• 70 percent resident renewal rate
• Fully vertically integrated: acquisitions, construction, property management, and asset management

Business Lines:
• Build for Rent: New BFR communities of single-family homes
• SFR Rehab: Acquire and upgrade for-rent scattered sites
• Brandywine Homes USA: In-house property management
• Marquis Homes: In-house development and construction

Track Record:
• Active since 2011
• Four closed real estate private equity funds
• Multiple institutional joint ventures
• One of the first movers in BFR nationally (launched BFR strategy in 2019)

Key Player on This Deal – Brad Stanis, Land Acquisition and Development:
Brad brings 18 years of land sourcing and entitlement experience and previously spent more than a decade at Lennar Homes. He personally led the acquisition and development of more than 30,000 homesites across Florida. Graduate of Notre Dame and Columbia University.

This is a serious operator entering the Nashville market with real scale and institutional backing.

Questions, leads, or feedback? We want to hear from you.
Email the City Scout team at [email protected]

P.S.

Want to learn more about Nashville? Check out our latest zoning report at https://www.trycityscout.com/nashville-scouting-report/