BOISE, ID – PEG Companies [“PEG”], a full-service commercial real estate investment firm known for its unique approach to creating value, today announced that it is breaking into the Idaho multifamily market with the firm’s first ever build-for-rent [BFR] project, a 3.6-acre parcel where 32 for-rent townhomes will soon stand.
Located at 10975 W Lake Hazel Road, the property stood out to PEG as a convenient acquisition because of the ability to acquire finished lots with entitlements and horizontal site work completed. With a highly experienced development team and BFR strategists working diligently to go vertical with the project right away, PEG aims to have residents moving into the new units by June 2022.
“PEG will build two- and three-bedroom homes, ranging from 1,029 to 1,270 square feet, at this location,” said David Bourne, Vice President of Investments at PEG. “Special attention was given to the architecture to ensure these homes blend with the Hazelwood Master Planned Community, and they will share amenities with the Parkside development directly across the street.”
In October 2021, PEG launched a $200 million private equity fund, PEG Capital Partners Fund IV, L.P., centered around building quality for-rent single-family housing across the Mountain West under its new brand Alante Homes. Each Alante Homes community will feature superior finishes and premium amenities, offering residents the freedom and space that come with single-family living while checking all the boxes of a traditional multifamily product in terms of convenience and lifestyle benefits.
Over the last 10 years, population growth in the Mountain West has significantly outpaced the rest of the country and remains a leading region in the United States for population migration, with home prices seeing double-digit growth between 2020 and 2021. The decline in homeownership affordability is one of the most pressing challenges facing the Mountain West region, driving additional demand toward low-density rental housing.
Aside from soaring home prices, PEG’s market research has revealed several other factors currently influencing people to explore alternatives to homeownership.
“As we’ve studied the target demographics of our future Alante Homes residents, a clear cross-generational trend has emerged: the desire for freedom and mobility. These days, more Baby Boomers, Gen Xers, and Millennials, alike, are prioritizing a comfortable and flexible lifestyle over homeownership, citing their lack of time for property upkeep, their desire to travel, and/or the convenience of the amenities that most BFR communities offer as key factors influencing their choices,” Bourne said.
PEG is targeting primary markets of Utah, Idaho, and Arizona and potential secondary markets of Montana, Wyoming, Colorado, Nevada, Oregon, and eastern Washington for its BFR strategy. The firm is currently under contract to purchase a separate 11.2-acre parcel adjacent to the 10975 W Lake Hazel Road property from the same seller for the development of upscale for-rent patio homes. To learn more about investment opportunities with PEG Capital Partners Fund IV, L.P., contact email@example.com.