PPR Capital Management just began investing in the build-to-rent housing sector last year, and now it is looking to pounce on a market it sees as benefiting from the new federal housing law. 

The Wayne, Pennsylvania-based firm this week is launching the PPR Keystone Housing Growth Fund, its first-ever fund focused on build-to-rent housing. PPR executives tell Bisnow it has a fundraising target of $100M. 

Courtesy of PPR Capital Management

A build-to-rent property PPR acquired in the Nashville metro area

The fund is designed to buy build-to-rent communities from the developers that constructed them. This type of sale was ultimately allowed by the 21st Century Road to Housing Act after months of debate over a proposal that would have required these types of homes be sold to individual buyers. 

The lengthy period of uncertainty froze the BTR market and caused financial distress that PPR is looking to capitalize on.

“There’s a lot of product available across the markets we’re targeting that has been built to rent but that the builder, their original take-out isn’t there anymore,” PPR Chief Asset Officer Craig Johnsen said. “So we are targeting build-to-rent properties, but also taking the development risk out of there and buying from distressed sellers.”

He named 10 regions the firm is targeting: Dallas, Salt Lake City, Nashville, Charlotte, Philadelphia, Chicago, Raleigh, Denver, West Palm Beach and Richmond. 

The fund is raising money from accredited individual investors, and its minimum check size is $50K. It is looking to buy properties with between 150 and 250 units, and with its $100M fundraising target, Johnsen said he anticipates that would yield six to eight deals. 

Founded in 2007, PPR is a private equity firm with $1.5B in assets under management. It has historically focused on acquiring nonperforming loans and residential mortgages. The firm began buying some multifamily in 2022 before entering the BTR sector last year. 

Johnsen said there were distressed BTR situations popping up early last year even before Congress disrupted the market. An overbuilding of units in some markets made it impossible for some developers to achieve the rents they needed to hit their return projections. 

An estimated 68,000 build-to-rent housing units began construction in the U.S. last year, according to the National Association of Home Builders, below the 2024 peak of 84,000 units but above most other years this century. 

BTR housing starts soared after the pandemic and became a larger share of the single-family housing market.

Some developers that have been unable to hit their rent projections have decided to cut their losses and sell, Johnsen said. 

This was the case for the first BTR deal PPR closed in March 2025: the $87M purchase of the Highline at Knoxville in Tennessee.  

“That happened to be one where the first phase of construction was totally complete and the second phase was underway, and they were looking to get out of the deal — they could see how the economics were going,” Johnsen said. 

While these conditions existed early last year, the lengthy Road to Housing debate made it much more difficult for BTR developers to sell their assets, as prospective buyers didn’t know how the rules for the market would be rewritten. 

Now that the bill became law Saturday at midnight — without President Donald Trump’s signature — the market appears ripe for a rebound. Hunter Housing Economics President Brad Hunter told Bisnow this week that BTR “could absolutely be one of the biggest winners” of the legislation.

Johnsen described the BTR market as being “over the hurdle.”

“We’re not anticipating any additional headwinds from a regulatory standpoint for build-to-rent going forward,” he said. “So that makes it a great time, especially given one reason a building might be under distress or needs capital to take them out was because of this three- to six-month period where there was a pause.”

Much of the debate over the bill had centered on lawmakers’ concerns about large companies buying up single-family houses and pricing individuals out of the market. The law ultimately kept some restrictions for institutional investors buying single-family homes, but it included a carve-out for build-to-rent properties. 

Developers that built single-family home projects intentionally for renters did so with the plan of ultimately selling to another landlord, rather than individuals, so Johnsen said the economics wouldn’t work for them to sell homes one by one.

And he said these properties don’t present an attractive investment for homebuyers compared to renting, given the elevated interest rates and homeownership costs like association fees and maintenance. 

“The levered return on buying a townhome for a homeowner is not actually good anymore,” he said. “When I look at it in terms of PPR wanting to supply housing to people, it’s more cost-effective for a company like ourselves to experience economies of scale.”

While PPR isn’t building new housing with this fund, Johnsen said allowing developers to exit their prior projects frees them up to build more.

More build-to-rent housing is needed across the country because Americans are increasingly renting for longer periods of their lives, but some still want the comfort of a single-family home with a yard. 

This creates strong demand for BTR housing, and Johnsen said he doesn’t see that changing anytime soon. He said that is part of why PPR decided to focus on BTR with its new fund.

“Going forward, rents in build-to-rent properties — or properties that mimic single-family housing, whether it’s a townhome or detached single-family — are going to significantly outperform rents at your more traditional garden-style, podium-style multifamily property,” he said. 

“But right now, especially given some of the supply surges that have happened in these Sun Belt markets, that’s not really reflected in their valuations,” he added. “So we think there’s a great opportunity for our investors to get in with relatively low downside.”

Walls have been tilted at Colton Commerce Center, a four-building 182,123-square-foot Class A industrial park with buildings ranging from 40,000 to 50,000 square feet located in a federally designated Opportunity Zone at 2245 West Valley Blvd. in Colton. The buildings at this Inland Empire development are available for sale or lease, with construction scheduled for completion in December 2025. 

JLL’s team of Cody Clayton, Scott Coyle and Jay Cuccia are marketing the property on behalf of ownership. “Unlike standard industrial building acquisitions, which offer no capital gains deferral or exemption, ownership at Colton Commerce Center allows buyers to eliminate federal capital gains tax on appreciation if held for 10 years, translating into millions in long-term savings,” said Clayton.

He continued, “Purchasing one of the buildings at the property would allow owner-users to avoid exposure to future rent and building cost increases while securing space in one of the most sought-after industrial markets in the United States.”

On June 18, join industry-leading experts when they explore the most important topics in today’s CRE markets. Register to attend and hear expert insights first-hand, network with the best in the industry, and sit in on discussions you won’t hear anywhere else. The 9th Annual Connect Los Angeles 2025, June 18 at the Intercontinental Los Angeles Downtown. 

Greysteel has announced the listing of a mixed-use opportunity zone development site at 45 Q Street SW, located in the rapidly expanding Southwest Waterfront area of Washington, D.C.

This fully entitled property is situated in proximity to the Navy Yard, The Wharf, and Buzzard Point. “45 Q Street is a rare opportunity to deliver a dynamic mix-use project in an opportunity zone between Nationals Baseball Stadium and Audi Field,” said W. Kyle Tangney, Senior Managing Director at Greysteel. “I’m not aware of another shovel ready opportunity in the entire US that features all the neighborhood and site dynamics this project has going for it.”

The property is currently entitled for a 152,245-square-foot mixed-use project featuring a 78,414-square-foot Moxy Hotel with 182 rooms under the Marriott International umbrella, 64,949 square feet of residential units, 6,546 square feet of ground-floor retail space, and a 4,436-square-foot rooftop venue.

Cantor Fitzgerald, L.P. and Silverstein Properties, Inc. said Monday they had closed on Cantor Silverstein Opportunity Zone Trust II, Inc. with more than $470 million of equity raised. CSOZ Trust II includes four planned multifamily and mixed-use developments totaling 1,932 multifamily units and 1.5 million square feet and located in Tempe, AZ, Richmond, VA, Summerville, SC and Huntsville, AL.

“We have seen strong investor interest in this business, enabling us to build a diversified portfolio of institutional-quality multifamily real estate,” said Bill Ferri, global head of Cantor Fitzgerald Asset Management. “This growth underscores our commitment to creating lasting economic impact and revitalizing neighborhoods across the United States. We are optimistic about a potential extension to the overall Qualified Opportunity Zone Program to further drive meaningful growth.”

Cantor and Silverstein launched their Opportunity Zone business in early 2019 to invest in, develop, redevelop and manage a diversified portfolio of institutional quality commercial real estate assets. The firms are focused on multifamily properties located in Qualified Opportunity Zones in the U.S.

Pictured: Shorehaven, part of Cantor and Silverstein’s South Pier mixed-use development in Tempe, AZ.

M&T Realty Capital Corporation provided $38.71 million in financing for 29-17 40th Ave., a 103-unit affordable property in a Long Island City Qualified Opportunity Zone. Loan originators Matt Newton and Todd Trehubenko of the M&T RCC office in Boston arranged the Freddie Mac Targeted Affordable Housing loan on behalf of The Davis Companies, SB Development and Hazelton Capital Group.

“By working closely with the sponsors and Freddie Mac’s Targeted Affordable Housing group in this challenging interest rate environment, we were able to execute on a timeline that fit the needs of the sponsors’ business plan for this Opportunity Zone project,” said Newton. “The dedication from all parties was crucial in getting this deal across the finish line.”

Twelve of the units at 29-17 40th Ave. will be restricted to tenants earning 130% of the Area Median Income and 19 will be restricted to those earning 80%.

Colliers is marketing the sale of 2 Gatehall Dr., a 389,000-square-foot office property in Parsippany, NJ. A Colliers team led by vice chair Jacklene Chesler, VP Patrick Norris, associate Jake Moss and director Philippe Jomphe is marketing the property, which is listed on Ten-X for auction from October 7 through October 9.

Originally designed to support big data and technology operations, the property is equipped with enhanced floor loads to accommodate high-tech equipment. It’s located within a master-planned 58-acre corporate campus and has undergone nearly $6 million in capital investments.

“The property offers a unique opportunity for investors seeking both stability and growth,” said Chesler. “The property, currently 30% leased to credit tenants, offers positive cash flow from its in-place leases. This provides a value-add opportunity to significantly increase net operating income through the lease-up of the remaining vacant space, making this an attractive asset in today’s current market.” 

Senior housing could be considered an “under-the-radar” commercial real estate sector, especially compared to the more active industrial, retail and multifamily sectors. However, NIC Map Vision’s Senior Housing Outlook report showed that development is behind, which could mean a $275 billion gap by 2030. The report explained that surging fundamentals (due to demographic and economic trends) and suppressed investment activity due to what it dubbed “dislocated debt markets” are among the reasons for that pending gap.

“Senior housing isn’t necessarily lagging. It’s facing an unprecedented surge in demand at a time when the lending environment is constraining new development,” Arick Morton, NIC MAP Vision CEO, told Connect CRE. Furthermore, despite post-recovery occupancy and robust absorption within the sector, “the situation is exacerbated by the dislocated debt markets and high interest rates which have suppressed new construction starts to near-historical lows.”

The numbers show occupancy and aggregate employment were within 1%-2% of pre-COVID levels. Furthermore, “rents are rising while operating expenses and inflation are moderating, leading to expanding profit margins,” the report said.

Additionally, the report pointed out that:

• Q1 2024 absorption increased by 40% year-over-year in Q1 2024

• The growth in the 80-year-old-plus population is exceeding inventory growth

• The 80-plus population is anticipated to “grow significantly” within the next 25 years

Defining Senior Housing

Morton explained that “senior housing” is an umbrella term for properties designed for individuals aged 75 and older. The categories include:

• Active Adult (AA): Communities dedicated to lifestyle-focused, minus healthcare services.

• Independent Living (IL): This is for mostly independent seniors who need assistance with daily activities and access to social and recreational activities.

• Assisted Living (AL) is for seniors who require assistance with various activities, such as bathing, dressing, and medication management.

• Memory Care (MC): Specialized assisted living for seniors with dementia.

• Continuing Care Retirement Communities (CCRC): Communities that provide a continuum of care from independent living to nursing care, meaning residents can age in place.

There is a need for additional space and housing across all categories due to unprecedented demand growth driven by an aging population.

But Is There Liquidity?

Morton said equity capital is available in the sector. He also acknowledged that the banking pullback in CRE lending and high interest rates are problematic for new development financing. As such, the current lending environment is insufficient, while the available capital “will need to grow substantially to meet the growing demand,” Morton observed.

Despite this, Morton said that intelligent investors who are able to navigate debt and capital challenges will tap into the sector’s many opportunities.

The Takeaways

Based on the report’s numbers, Morton suggested that investors and developers consider senior housing a viable real estate product. Taking advantage of the sector’s opportunities requires the following steps :

• Position themselves to take advantage of the building demand wave.

• Focus on high-demand markets that show strong occupancy trends and expanding profit margins.

• Invest in outdated properties that can benefit from capital upgrades.

• Develop new properties with modern amenities ideal for today’s seniors.

• Focus on a long-term strategy with sustainable development and continuous facilities improvement.

“These steps will enable investors and developers to capitalize on the strong fundamentals and favorable demographic trends driving the senior housing market,” Morton noted.

Arctaris Impact Investors, LLC, a Boston-based impact investment firm that supports revitalization projects in underserved communities, made a lead equity investment in Liv DTLA, a $67-million market-rate affordable housing development in the South Park neighborhood of Los Angeles. The transaction marks Arctaris Impact’s first Opportunity Zone investment in Los Angeles.

Funding for the project includes Arctaris’ $13.6-million equity investment, a $34.9-million loan facilitated by the United Way of Greater Los Angeles’ Affordable Housing Initiative, and $18.1 million of equity previously raised through CrowdStreet and other impact-oriented high-net-worth individuals.

The all-studio housing project, located at 1411 S. Flower St., is being developed by Housing Diversity Corp., a Seattle-based large-scale multifamily real estate manager. Construction is 85% complete and the finished project is expected to consist of 227 units, with 40% reserved for extremely low-income and voucher-subsidized households.

On April 18, join multihousing’s leaders and dealmakers when they explore the most important topics facing the Phoenix and Scottsdale markets today. Register to attend and hear expert insights first-hand, network with the best in the industry, and sit in on discussions you won’t hear anywhere else. Connect Phoenix Multifamily & Single-Family Build-to-Rent on April 18 at the Westin Kierland Resort & Spa.  

Marcus & Millichap finalized the sale of a 0.16-acre parcel of land located in San Diego. The asset sold for $1,600,000. 

Aaron Bove, senior managing director investments in Marcus & Millichap’s San Diego Del Mar office, marketed the property on behalf of the seller, 3971 Georgia Avenue San Diego LLC. The buyer, RD Dev Properties LLC, was procured by Bove and Jared Wallach, investment specialists in the firm’s San Diego Del Mar office. 

The property is a 6,998-square-foot lot with an existing duplex located at 3971 Georgia St. in San Diego. This prime Hillcrest site was zoned RM-3-7 and included a Complete Community Tier 3 overlay and was in a Qualified Opportunity Zone .  

“We are very excited to watch the transformation of the site into quality housing for the neighborhood,” said Bove. “The 45-day escrow shows the resiliency of San Diego development.” 

Courtesy of Chicago Neighborhood Initiatives

Pullman Crossings

A deadline is approaching for investors that want to pour capital gains into federal opportunity zones, and a rush could be on.

As of Jan, 1, investments into qualified opportunity zone funds won’t receive the 10% reduction on deferred capital gains taxes that has been part of the program since it was created by the 2017 Tax Cuts and Jobs Act.  

Those who act after Dec. 31 can still secure two other benefits from the program, which, according to its congressional sponsors, was meant to drive investment into neighborhoods historically starved for capital. Future investors can still defer their capital gains tax liability until Dec. 31, 2026, as well as eliminate taxes on any capital gains realized from an opportunity zone investment after 10 years.

Those two benefits are each more valuable to investors than the 10% reduction on deferred capital gains taxes that will sunset in less than four weeks, according to Origin Investments Co-CEO David Scherer. But the loss of that reduction is still causing a new rush of investors seeking to take advantage of opportunity zones.  

“It’s a better idea to do this in December rather than in January because why not get the 10%?” Scherer said.

Origin closed its first qualified opportunity zone fund in July after raising $265M from more than 800 investors, he said. These dollars can flow into most kinds of developments, properties and businesses within the nation’s 8,700 opportunity zones, but Origin concentrates on multifamily developments. Its first fund has about 3,700 units under construction in 11 multifamily properties, with a total value of more than $846M.

The firm launched its second qualified opportunity zone fund in October. It has six multifamily assets in its pipeline, including projects in the Atlanta, Phoenix, Charlotte and Colorado Springs markets.

It is typical that Q4 is the busiest for firms running qualified opportunity zone funds, Scherer said, but based on activity over the past few weeks, this year could be the busiest.

“I can’t give you an exact number, but we’re already seeing it, and we’re pretty confident we’ll have a record December,” he added.

Opportunity zone funds have become more popular with investors. In the first half of 2021, qualified funds raised more than $17.5B, a 15.5% boost over the total reported for all of 2020, according to a study by Novogradac, a public accounting firm.

The program has its critics, who say opportunity zones provide tax breaks for wealthy investors and promote development in areas that aren’t really struggling.

That isn’t true, at least in Illinois, according to Jennifer Bransfield, chief operating officer of Chicago Neighborhood Initiatives, a nonprofit developer that does a lot of work in the Far South Side neighborhood of Pullman. She credits state and city officials for making sure opportunity zones in Illinois covered the neighborhoods, including Pullman, that needed the most help.

“It’s an important tool that helps finance projects that traditional developers will overlook because they don’t pencil out with traditional forms of capital,” she said.

Opportunity zone investors provided all the funding for the $35M, 400K SF industrial building that CNI developed in Pullman Crossings, a 62-acre industrial park. The project was finished two years ago and is now fully occupied by manufacturer SC Johnson.

“Having the OZ financing meant we were able to develop the project very swiftly, just nine months, and deliver 200 new jobs to the neighborhood,” Bransfield said.