With nearly two decades of experience in the real estate industry, a local entrepreneur is looking to help others break into the state’s burgeoning market.
After forming a venture aimed at accredited investors earlier this year, former Triten Real Estate Partners principal Ty Lee has launched Common Dwelling, a newly launched Regulation A fundraising platform focused on helping non-accredited investors find opportunities in residential real estate.
“We’re combining our institutional underwriting and valuation experience with our architectural background to deliver a product that is and will be in demand for years to come — well-designed and innovative single-family rentals,” the company’s website states.
With a target of raising $20 million for its first fund, Common Dwelling plans to purchase single-family units across Texas, renting them out for a period of three to five years and renovating them with in-house “strategic construction partnerships” before selling the property. Minimum investments start at $100.
Specifically, Common Dwelling is looking to invest in units with a minimum of three bedrooms and 1.5 baths. According to its website, investment criteria include being in a good school district and high employment and job-growth area, along with the home having the potential to be renovated and modernized. While other avenues open to non-accredited investors like REITs have an average five-year return of around 8%, according to data from Morgan Stanley Capital International, Common Dwelling’s leaders state they have “achieved over 20% IRR and 1.8x equity multiples,” according to its website.
“All houses purchased by the fund must have a layout that supports current lifestyles as well as the potential to be aesthetically pleasing,” Common Dwelling’s website states. “Ideal assets would be located near major thoroughfares making access to the metroplex and jobs convenient.”
Common Dwelling’s fund will be administrated by Dallas firm Cobalt Fund Services. Properties will be managed by Mynd Property Management.
In June, Lee launched Common Ground Capital, an accredited investor fund focused on acquiring, renovating and operating single-family rental units in the North Texas region. It raised $7 million for its initial fund with backers including the Loh Family.
“With both Common Ground Capital and Common Dwelling, we’re able to combine institutional underwriting and valuation experience with a solid architectural and design background to provide well-designed and relevant single-family rentals,” Lee said in a statement. “We’re currently seeing great success with rent growth, robust current and future demand in the space and want to provide that opportunity for as many people as possible.”
Along with Lee, whose experience in real estate includes stints at Quadrant Investment Properties and CBRE, Common Dwelling’s leadership includes Chairman Christian Mack, the founder and managing director of enterprise services-focused firm Lotus Innovations Fund.
The timing of Common Dwelling’s launch comes as DFW saw single-family rental prices rise by 14.1% in the past year – the sixth highest increase in the nation, according to an analysis by CoreLogic.
