Alex Pollack, VP of Partnerships, describes today’s BTR market as a tale of two pipelines.
"There are newly proposed projects with today's cost inputs which are penciling.
And there are projects from 2022 which aren't underwriting in the current environment."
If your projects are falling into the latter category, read on to find four places where you can look for those precious cost savings.
In this issue, we discuss:
1. How Mosaic Hub is designed for BTR (REI Ink)
2. Better project management (Bricks & Bytes)
3. Financing BTR developments
4. Q1 and where the market stands today
Optimizing BTR Construction
"When a project isn't operating at its highest capacity, it's not because the different trades are not doing their jobs; it is because there are discrepancies in coordination or material procurement.
Mosaic Hub is designed to optimize every aspect of the construction process, ensuring efficiency and removing communication gaps from start to finish."
We’ve built a technology platform to optimize BTR development and build communities at scale. We spoke with Carole Ellis at REI Ink about how Mosaic Hub is empowering developers to do more, for less.
"If you can represent a construction project with more granular data, you can manage it better."
Place #1 to find cost savings: your GC. Our approach leverages critical construction data and enables us to offer 30% cost savings compared with commercial GCs and 25% schedule savings compared with homebuilders. Salman unveils the inner workings of Mosaic Hub on the Bricks & Bytes podcast.
Despite a slow start to 2025, the collective feeling in BTR is “cautious optimism.” Here's how we see the market today:
1. We have seen an increase in the availability of subcontractors. Place #3 to look for cost savings is from trades. Slowdowns in other asset classes create gaps in trades’ pipelines of work, resulting in better costs or schedules for BTR. Our conversation with InBusiness Phoenix.
2. We’re playing the waiting game. Macro conditions are going to heavily favor developers, but not until land prices retreat and deals start to pencil. Takeaways from Bisnow's Phoenix BTR event.
3. We can’t solve cost increases with rent increases. Place #4 to find available dollars is within your product plans. Can you get creative with your finish levels? What about amenities? Highlights from IMN BTR East.
From the Field
Corsica Villas, Phoenix
We have reached a critical juncture on both Corsica Villas at 20th St. and Corsica Villas at Euclid Ave - the start of vertical construction!
Roadways are in, slabs are poured, and our first frame walk with Rockefeller Group has been completed. We are continuing to press forward and deliver the communities combined 152 townhomes.
Avilla Palomino, Glendale
We passed our final drywall inspection, a major step towards final delivery of this community's 197 homes.
