Quarterra Multifamily Announces the Continued Growth of its Emblem Communities Development Program

Rhea-AI Summary

Quarterra Multifamily, a subsidiary of Lennar , announces the success of its Emblem program aimed at providing attainable housing options for middle-income renters. The program has delivered 7 communities with 2 more under construction, addressing the national shortage of Class A housing for middle-income residents.

Insights

Real Estate Market Analyst

The expansion of Quarterra's Emblem portfolio, with a focus on middle-income renters, is a strategic move in the multifamily housing market. By targeting a demographic often referred to as the 'missing middle,' Quarterra is tapping into a segment that has been underserved by traditional Class A developments, which typically cater to higher-income residents. The Emblem program's emphasis on suburban locations is also indicative of a broader trend where renters are seeking affordability without compromising on quality and modern amenities.

This approach of standardized, repeatable design can lead to significant economies of scale. By reducing costs associated with architectural and interior design, as well as branding and procurement, Quarterra can offer a lower price point to renters. This strategy not only benefits consumers but also has the potential to enhance Quarterra's competitive edge in the market. The cost savings and speed to market could result in higher occupancy rates and quicker returns on investment, which are key metrics for investors and analysts monitoring Lennar Corporation's performance.

Construction Efficiency Expert

The Emblem program's method of using consistent interior finishes and amenity designs across multiple communities is a noteworthy innovation in construction efficiency. This standardization allows for a streamlined construction process, which can significantly reduce both costs and project timelines. In the context of a housing market that is increasingly cost-sensitive, the ability to expedite the availability of new units is a considerable advantage.

Furthermore, the utilization of high-end materials like quartz countertops and stainless steel appliances, typically associated with luxury properties, at a price accessible to middle-income renters, is compelling. It suggests that Quarterra is effectively leveraging bulk purchasing and repeatable designs to create value. For stakeholders, this could mean a stronger brand reputation and potentially higher long-term asset values due to the perceived quality of the developments.

Urban Planner

The Emblem program's strategic placement in suburban areas is a response to the shifting dynamics of urbanization and the housing market. As the urban core becomes increasingly expensive, the suburban multifamily housing sector is poised for growth. This migration pattern, accelerated by the rise of remote work and the search for more affordable living, creates a demand for housing solutions that balance cost, quality and location.

By focusing on the suburbs, Quarterra is not only addressing the affordability crisis but also contributing to the suburbanization of amenities, traditionally found in urban centers. This can have a ripple effect on local economies, potentially spurring retail and service sector growth and promoting a more balanced regional development. The success of such programs could lead to a reevaluation of zoning and development policies, encouraging more mixed-use and multifamily projects in suburban areas.

Program designed to deliver attainable options for middle-income renters has delivered 7 communities, with 2 more under construction

CHARLOTTE, N.C., March 27, 2024 /PRNewswire/ -- Quarterra Multifamily, a subsidiary of Lennar Corporation and a vertically integrated multifamily apartment builder, developer and property manager, today announced the continued growth and success of Quarterra Emblem Communities with the opening of Emblem Shakopee, near Minneapolis, and Emblem Oswego, outside Chicago.

The two newest communities are the sixth and seventh in Quarterra's Emblem portfolio, with 10 more Emblem communities currently in the pipeline. Quarterra created the Emblem program to help address the national shortage in supply of Class A housing that is attainable for middle-income residents. The program focuses on the development of suburban apartment housing across the nation, with an emphasis on location.

"The Emblem program takes aim at the growing housing attainability crisis facing renters in suburban markets, while still meeting renter expectations for a modern, sophisticated living experience," said Doug Bober, Division President of Quarterra Emblem Communities. "Through repeatable designs, we can produce a Class A product within financial reach of middle-income professionals. The program's success is exceeding expectations, raising the bar for cost-effective rental housing development and shifting the conversation on housing attainability."

Emblem property development deploys a programmatic approach that utilizes consistent interior finishes from one Emblem community to the next, features high-end materials like quartz countertops in kitchens and baths, stainless steel appliances, and luxury vinyl plank flooring. Amenity designs and property features such as social rooms and fitness centers also follow a consistent prototype. The focus on simplification and standardization increases efficiencies with regard to cost and schedule, allowing Emblem developments to reach the market within an expedited timeframe.

To date, the Quarterra Emblem Communities pipeline includes:

• 1 community completed, leased up and sold
• 6 communities currently in lease-up (including Oswego and Shakopee)
• 2 communities currently under construction
• 8 in the planning stages

Through scale and repetition, Quarterra reduces the costs associated with architectural and interior design, branding, labor and materials procurement. With established prototyping and the replication of processes, Quarterra is able to pass through that cost savings to residents and address the housing needs of the nation's missing middle demographic.

About Quarterra
Quarterra Group, Inc., a wholly-owned subsidiary of Lennar Corporation (NYSE:LEN and LEN.B), is a multi-strategy, real estate focused, alternative asset management company comprised of two rapidly growing verticals: Multifamily and Single-Family Rental. Launched in 2011, Quarterra Multifamily, previously known as LMC, is among the nation's most active developers, builders, and managers and has been on the National Multi-Housing Council's (NMHC) annual Top 50 list for nine consecutive years.

Quarterra creates extraordinary communities where people can live remarkably.

www.Quarterra.com

Media Contact                                     
Marlena DeFalco
LinnellTaylor Marketing                        
303-682-3943                                       
marlena@linnelltaylor.com

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SOURCE Quarterra

FAQ

How many communities has Quarterra's Emblem program delivered?

Quarterra's Emblem program has delivered 7 communities with 2 more under construction.

What is the focus of Quarterra's Emblem program?

Quarterra's Emblem program focuses on developing suburban apartment housing across the nation, with an emphasis on location, to address the national shortage of Class A housing attainable for middle-income residents.

What are some features of the Emblem property developments?

Emblem property developments feature consistent interior finishes, high-end materials like quartz countertops and stainless steel appliances, luxury vinyl plank flooring, as well as amenities like social rooms and fitness centers following a consistent prototype.

How does Quarterra reduce costs associated with housing development?

Quarterra reduces costs through scale and repetition, utilizing established prototyping, and replicating processes to pass on cost savings to residents and address the housing needs of the nation's missing middle demographic.