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Broadtree Homes

“There is a sizable shift occurring from single family home ownership to single family rentals.”

–Amy Tait, CEO

After the recent housing crisis and a continuing decline in the rate of individual home ownership, a tremendous investment opportunity has presented itself in the real estate asset class of single-family homes for rental. Broadstone Real Estate is uniquely positioned to capitalize on this opportunity of acquiring stabilized portfolios of single-family homes and has developed a vehicle in which accredited investors can invest in the space without the difficulties of direct rental home ownership and management.

Broadtree Homes provides investors a simple solution for investment in the growing single-family home rental marketplace. A private real estate offering, Broadtree Homes is designed to provide a stream of consistent, ongoing income combined with the potential for share-price appreciation  to investors through the acquisition of portfolios of single-family homes for rent. The business model and strategy are based on working to minimize risk by acquiring portfolios of stabilized (already rented and renovated) homes, providing individuals and families with homes they want to live in long term.

Founded in 2012 by the Leenhouts and Tait families, who previously founded Home Leasing Corporation in 1967 and Home Properties, Inc. (NYSE: HME)* in 1994, Broadtree Homes is managed by a team that brings more than 50 years of experience in residential property management. The team also has extensive experience managing and growing a multi-market residential portfolio, as well as vital public and private capital markets experience. With conviction that single-family home rentals provide both an attractive long-term housing alternative for families and a solution to reinvigorate the housing market and overall economy, the founders have subsidized over $1 million in start-up and staffing costs to create a management platform to support Broadtree Homes.  Shareholders in Broadtree Homes benefit by owning the homes, without needing to participate in the start-up costs associated with creating a new operating company.

Broadstone Real Estate, doing business as Broadtree Home Rentals, provides acquisition and property management services to certain Broadtree Homes markets.

 

*Broadstone Real Estate, its principals and affiliated investment offerings are not currently affiliated with Home Properties, Inc.

Single Family Rentals: The Consolidation is Happening Now

  • Numbering 14 million, single-family home rentals now serve over 12% of the households in the U.S.¹²
  • Fewer than 250,000 of those homes (2%) are currently owned by institutions
  • Movement to increased home rental is driven by more stringent mortgage financing requirements, a reduced desire of families to own, and a shift in attitudes toward home ownership. But families still prefer the lifestyle of living in a single-family home
  • Consolidation is an emerging trend as opportunistic investors seek to monetize their stabilized portfolios and existing ‘mom and pop’ rental property owners cannot compete with professional managers with access to institutional capital

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Current and Future Markets

BTH Portfolio

  • BTH seeks markets with balance of attractive current income and long-term price appreciation
  • Current Markets include:
    • Atlanta, Georgia Area—Forecast to outpace the rest of the nation in population growth
    • Southeast Florida Region—Attractive pricing & yields, greater market appreciation potential
    • Greater Minneapolis Area—Stable marketplace, excellent occupancy, economic growth
    • Rochester, N.Y.—Reasonable initial yields, stable markets with little distress

 

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Performance

  • 5% annual distribution, paid quarterly*
  • Ability to raise rents annually as inflation and local market rates allow
  • Recovering property values
  • Potential annual total return of 7% to 20% (including Home Price Appreciation)**

Past performance is not indicative of future performance.  All performance data is net of fees and expenses.  Please view an important list of disclosures and risk factors.
*Annual distribution per share is not guaranteed and is determined at the discretion of the Broadtree Homes, Inc. Board of Directors. 
**Annual total return is comprised of the annual distribution, potential capital gains and home price appreciation.

 

 

 

How to Invest in Broadtree Homes

  • Broadtree Homes fee structure designed to be attractive for institutions, endowments, pension funds, family offices and high net worth individuals
  • Monthly closings held for new and additional equity investments
  • Attractive minimum initial investment of $50,000
  • Attractive current dividend yield of 5% with substantial current tax sheltering of dividends anticipated for taxable investors
  • Flexible quarterly liquidity provisions for shareholders
  • Ability to execute joint ventures and capital deployment for institutional investors seeking to allocate funds to the single family home rental space
  • To learn how to invest in Broadtree Homes, click on the “Investor Kit” tab on the side of the page to request an Investor Kit today

Broadtree Homes Board of Directors

Amy Tait – Chairman, CEO & President

Norman Leenhouts – Director & Chief Investment Officer

Shekar Narasimhan – Lead Independent Director

James Watters – Independent Director

Kim Thompson – Independent Director

Geoff Rosenberger –  Independent Director

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