Sunstone Joins with Two Tree Capital to Develop SF BFR Housing

Sunstone Joins with Two Tree Capital to Develop SF BFR Housing

Build-for-rent single family housing has grown rapidly as an asset class unique from multifamily and the traditional single family rental business that grew out of the Global Financial Crisis. The sharp rise in the cost of for-sale housing and the desire for more space fueled by the pandemic has driven single family rents and occupancy up beyond that of other asset classes.

Two Tree Capital, an affiliate of Sunstone, controls five land parcels in the Phoenix metro area (currently experiencing rent growth of 15% y/y as of 6/21) with plans to build 850 homes for rent. Each community will be professionally managed with amenities and consist of two-story homes with attached garages and private yards.