Property: Encanto Isla
Developer: Wolfson Development Co.
Location: Orlando, Florida
Cost: $65 million
Wolfson Development Co., in partnership with Paragon Group and contractor First Florida, has broken ground on its first build-to-rent development in the Orlando, Florida, metro. Encanto Isla is set to include 214 new townhomes, expected to deliver in the third quarter of 2023, according to the developer’s website.
The project consists of two adjacent 25-acre parcels, divided into two neighborhoods — Encanto and Isla. Each townhome will incorporate a private garage, and amenities will include a resident clubhouse, fitness center, business center, pool, walking trails and picnic areas.
“WDC is very excited to break ground on Encanto Isla," said Adam Wolfson, CEO of Wolfson. “This partnership is an encouraging step toward implementing our build-for-rent approach, which is focused on developing a unique rental product that responds to the nation's present and persistent housing affordability challenge, rising interest rates and accommodates shifting renter demographics, at the same time.¨
Miami, Florida-based developer and investor Wolfson has over 2,050 units valued at a total of $1 billion in its pipeline, according to a release provided to Multifamily Dive. The developer has four active developments — three build-to-rent projects in Florida and one adaptive reuse multifamily building in Michigan — and counts the Southeast, Southwest and Texas among its target markets, according to the website.
Rents for single-family build-to-rent homes in Orlando rose approximately 6% year over year in December 2022, ahead of the 4.8% YOY national average rent growth for single-family build-to-rent, according to Yardi Matrix. It is one of three Florida markets in the top 30 for single-family rentals, along with Tampa, which ranks No. 4 for rent growth, and Miami, which ranks just below the national average.
Florida also has one of the highest rates of single-family listing conversions from for-sale to rental, with approximately 15% making the change in November, according to John Burns Real Estate Consulting statistics cited in the report