New Built-to-Rent Community – First of Its Kind in New Mexico – Set for Construction in Santa Fe

A prominent private equity management company based in Dallas is making a mark in the growing build-to-rent market with plans for an expansive new residential community in southwest Santa Fe.

Paceline Equity Partners LLC, which focuses on what it calls “value-oriented investing,” has announced that it wants to build nearly 200 residential units spread out over some 17 acres that the company recently purchased.

The project, partly bordered by Buckner Road and Rail Runner Road, will see the construction of buildings featuring “Class-A finishes and resort style amenities.”

While build-to-rent projects have become the rage across the country, seeing a 102% increase in the last 5 years, the Paceline project is the first of its kind in New Mexico.

In announcing the Santa Fe effort, Paceline said it is doing the work in conjunction with the New York-based developer Verdot Capital.

In a statement, Robert Wall, Verdot managing partner, said the new build-to-rent project will “contribute lasting value to Santa Fe, meeting a critical housing need in a way that honors the character of this remarkable city.”

To say that the build-to-rent market is booming would be an understatement. The sector has, in fact, been the fastest-growing segment of single-family home construction in the last three years.

Built as part of larger communities, the only difference between such communities and any other residential community, notes the site Fixr.com, is that the “homes are designed to be rented, instead of purchased.”

According to a report issued last month by the Dallas-based real estate services company CBRE, the build-to-rent market, with homes ranging in size from 650 square feet to around 2,800 square feet, only recently saw a marginal decline to do “higher borrowing costs and tighter lending conditions,” among other factors.

Even so, total investment in such projects exceeded $1.6 billion as of the end of last year, with around 430,000 units competed.

November 19, 2024

By Garry Boulard

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