Amid Rising Popularity of Single-Family Rental and Build-for-Rent Assets, Walker & Dunlop Launches Dedicated Practice Group

Rhea-AI Summary

Walker & Dunlop has established a dedicated team to tap into the growing Single-Family Rental (SFR) and Build-for-Rent (BFR) markets, currently valued at around $3.4 trillion. The demand for these property types has surged due to shifting migration patterns influenced by COVID-19, with BFR properties making up 10% of new homes. The new SFR & BFR Practice Group, led by key executives, aims to provide financing and sales support, having already secured over $872M in capital with an active pipeline of $1.4 billion.

Positive

• Formation of a dedicated team for SFR and BFR markets.
• Reported capital raised exceeding $872M, indicating strong investment interest.
• Active pipeline of $1.4 billion for future projects.
• SFR and BFR markets expected to outpace other real estate sectors.

Negative

• None.

BETHESDA, Md., Feb. 1, 2021 /PRNewswire/ -- Walker & Dunlop, Inc. announced today that it has formed a dedicated team to address the rapidly expanding Single-Family Rental (SFR) and Build-for-Rent (BFR) market. While demand has steadily increased over the past several years, migration patterns related to COVID-19 have accelerated the popularity of SFR and BFR properties. An increasing number of investors are therefore expanding their strategy to include the product, and the BFR sub-segment is playing an emerging role in large scale investors' portfolios.

The SFR market is estimated at $3.4 trillion, compared to $3.5 trillion for the multifamily market,[1] and growth of this asset class is expected to outpace multifamily, office, retail, storage, and hospitality growth within the next few years. BFR properties, a sub-segment of the SFR market, are purpose-built housing to be operated as single-family rental investments. This increasingly popular concept within the multifamily industry currently makes up as much as ten percent of new homes built. While a relatively new product among investors, national homebuilders, and developers, BFR has become more popular to investors, including traditional multifamily developers. The rapidly growing BFR market is expected to continue expanding, as more residents prefer to rent single-family homes with yards and upscale amenities on a long-term basis.

Walker & Dunlop's specialty practice group comprises 13 experts strategically positioned throughout the business to finance and sell SFR and BFR communities across the United States. The national team is led by Cliff Carnes, Senior Vice President and Capital Markets Western Region Chief Production Officer, Ted Patch, Chief Production Officer of the company's Multifamily Finance group, and Kris Mikkelsen, Executive Vice President of Investment Sales.

Carnes commented, "The SFR/BFR space will be a very significant part of the rental market's growth for years to come. Conventional multifamily properties alone cannot keep pace with demand for housing as the number of renters in the U.S. grows. With market demand continuing to outpace supply, the SFR and BFR space will continue to attract renters, developers, owners, and investment dollars."

Walker & Dunlop's dedicated SFR & BFR Practice Group provides expert guidance on construction, bridge lending, permanent financing, structuring equity, and property sales to generate optimal returns and strategic relationships for clients. The team has closed and raised capital for over $872M in this burgeoning sector, has an active pipeline of $1.4 billion, and is active with over fifty groups in the space, ranging from institutional clients, homebuilders, multifamily developers, and individual investors.

To learn more about Walker & Dunlop's view on the BFR market, including information on lending, capital brokerage, or investment sales opportunities, download our whitepaper here.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine's Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop's 1,000+ professionals in 41 offices across the nation have an unyielding commitment to client satisfaction.

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[1] Magnify Capital

 

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SOURCE Walker & Dunlop, Inc.

FAQ

What is the recent announcement by Walker & Dunlop regarding the SFR and BFR markets?

Walker & Dunlop has launched a dedicated team to focus on the expanding Single-Family Rental and Build-for-Rent markets.

How large is the Single-Family Rental market according to Walker & Dunlop?

The Single-Family Rental market is estimated at approximately $3.4 trillion.

What significant role does the Build-for-Rent market play?

The Build-for-Rent market is becoming increasingly crucial for large-scale investors, contributing to 10% of new homes built.

What is the capital raised by Walker & Dunlop for SFR and BFR investments?

Walker & Dunlop has closed and raised over $872 million for SFR and BFR properties.

What is the anticipated growth trend for the SFR and BFR markets?

The SFR and BFR markets are expected to continue growing, driven by increasing demand for rental housing.