News & Opinions
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Are Your Bets on Renting or Owning?
BUILDER / July 9, 2013
Today’s big story is a second-half-of-2013 question raised by two other breaking news articles.
In one, Bloomberg/ BusinessWeek staffer’s Heather Perlberg and John Gittelsohn explore the strategy Blackstone Group is building out with its investment in the single-family for-rent market.
In the other, the Silicon Valley Business Journal’s Nathan Donato-Weinstein covers the IPO terms for San Jose, Calif.-based UCP, Inc. a land developer-builder seeking to raise $150 million or more in the equity capital markets.
One plan banks on a business that stakes its future on management of scattered single-family for-rent properties. The other’s solidly founded on an entry-level, move-up, and second-time move-up American Dream of Homeownership business model.
How do these stories tie? Can both strategies be right?
We’re especially interested in the information the UCP IPO will give us. As the UCP shares price and trade, we’ll get resolution as to one of 2013’s important areas of uncertainty: Investor appetite.
This is a critical question for several reasons. Certainly, for UCP ceo Dustin Bogue’s management team, the moment will tell whether his company’s narrative–the leveraging of a relatively cheaply acquired pipeline of between 5,000 and 6,000 lots into a multiregional home building enterprise–flies among yield-starved investors.