NexMetro launches $25M fund built on stabilized rental homes
What's the deal? NexMetro CommunitiesDealroom has a profile for this one. Try Dealroom → has launched the NexMetro Strategic Asset Fund, LLC, a $25 million participating preferred equity vehicle giving accredited investors access to a portfolio of stabilized Avilla HomesDealroom has a profile for this one. Try Dealroom → build-to-rent (BTR) communities. It is the developer's first fund built around already-performing assets rather than ground-up development.
The details: The fund targets a two-year investment horizon, an 8% annualized participating preferred return paid quarterly, and a projected 17% net internal rate of return, according to NexMetro. The Avilla communities consist of detached, single-story rental homes with private yards.
Why now? NexMetro is betting on a shift in the multifamily cycle. "After an extended period of elevated new supply, the market is entering a phase where stabilized, income-producing assets like Avilla communities are exceptionally well-positioned," said Ryan Krafczik, vice president of equity investments.
What's the endgame? The fund extends a platform that now spans the BTR life cycle, from ground-up development to private credit. In February, NexMetro introduced Direct Access Fund 2026, a $100 million vehicle targeting newly developed Avilla communities; the new fund covers the opposite end, buying communities that have already stabilized.
Its offerings are available to advisers through FidelityDealroom has a profile for this one. Try Dealroom →, SchwabDealroom has a profile for this one. Try Dealroom →, and the iCapital MarketplaceDealroom has a profile for this one. Try Dealroom →.
The backdrop: Established in 2012, NexMetro is a vertically integrated BTR developer that has focused exclusively on Avilla Homes. It has projects across Sunbelt submarkets including Phoenix, Dallas, Denver, Atlanta, Austin, and Tampa, with more than 60 neighborhoods completed and underway.
The signal: The fund reflects a pivot among BTR sponsors toward income from finished assets as a wave of new supply gets absorbed — a play on the sector's fundamentals at a point NexMetro calls "a compelling moment to deploy capital."
Read more: altswire.com
Image credit: Sightline Institute
