Trei Real Estate (“Trei”), an international developer and asset manager, just sold the multi-family development “Queens Wedgewood-Houston” in Nashville,Tennessee, to a U.S. investor. It is the third multi-family development that the company successfully marketed in the United States. Built together with local development partner Proffitt Dixon Partners at a total investment cost of c. 58.0 million euros and completed in May 2024, the property divides into 220 rental apartments. Between May 2024 and January 2025, Trei completed altogether four multi-family developments, namely “Queens Wedgewood-Houston” (220 rental apartments),
“The Note” in Jacksonville (290 apartments), “Ello House” in Charlotte (343 apartments) and “Alta Ivy” in Raleigh (300 rental apartments). In a parallel move, the company kicked off construction work at its latest residential development in June 2024, the “Chamberlain House” (formerly “Germantown Stockyard”) in Nashville. This project will deliver 345 rental apartments and is scheduled to be completed in 2026. The total investment volume for all five of these properties equals c. 406 million euros.
“Selling our ‘Queens Wedgewood-Houston’ development enabled us to free up funds for the development of new residential projects. The rental housing segment in the so-called Sunbelt states continues to be extremely lucrative both for developers and for investors, which is reflected in the successful sale of this development at an attractive rate of return of about 15.0 percent (IRR). By moving ahead with the construction of ‘Chamberlain House’ at the same time, we keep pursuing our activities in Nashville, which is a strategically important market for us,” explained Pepijn Moshuis, CEO of Trei Real Estate.
Aside from the developments pursued so far, Trei is preparing to buy more land for the realization of its next multi-family projects. The first of these properties is located on Merritt Island in the economically prospering “Space Coast” region of Florida, which is defined by the aerospace industry and home to the Port Canaveral facilities. The second property is located in Charlotte, North Carolina, which is where the US head office of Trei is also located.
“The multi-family sector in the south-eastern United States remains a major growth market for us. Our investments in this region mark a pinpoint response to the rise in demand for rental apartments in economically outperforming areas. Their population is growing, demand remains strong, and the investment conditions are attractive because of the comparatively low construction costs. These factors offer the perfect prerequisites to expand our property development pipeline for the long term and to generate reliable returns at the same time,” added Morshuis.