TWO Capital Partners and RAM Partners have formed a joint venture for the development of more than 2,300 single-family rental units over the next two years. More than a dozen communities are set to take shape across the Southeast, all slated to operate under the Tessa brand.
The partnership’s inaugural community has already opened in Winder, Ga. Tessa Barrow Crossing comprises 235 townhome units and includes amenities such as a swimming pool, fitness center, dog spa, pet park and coworking space. All homes feature smart home technology and private garages. Located at 116 Dolcetto Drive, Tessa Barrow Crossing is off Highway 29, roughly 45 miles from Atlanta.
TWO Capital Partners Managing Partner Ralph Wilson III stated in prepared remarks that the sites for the upcoming communities are located near major thoroughfares and interstates, offering access to large employment centers. Currently, the company has 947 units across five BTR properties under construction in North Carolina, Tennessee and Georgia, as well as six Tessa communities in its Southeastern pipeline. Earlier this year, TWO Capital entered into a $227.2 million partnership with Origin Investments for the construction of three such properties.
Average asking rates for SFR properties in the U.S. dropped $6 in August to $2,104, and only rose 0.5 percent year-over-year, but demand continues to remain strong, a recent Yardi Matrix report shows. The Sun Belt specifically has seen increased development for this asset type, boosted by steady in-migration and job growth.
