We're pleased to share that as of January 2025, Treeline Trails, our 146-unit community of build-for-rent homes in Jacksonville, Florida, had achieved stabilization with an effective occupancy at an impressive 100%. Stabilization is typically defined as the point at which a property has completed initial lease-up and achieved an occupancy rate of 90-95%. This milestone marks another successful transition in our portfolio to the cash-flowing stabilization phase.
From acquisition to stabilization
As highlighted in our recent portfolio updates, real estate investments follow a natural progression where properties ultimately reach their full income potential once stabilized. With Treeline Trails, we acquired the fully constructed community in June 2022, allowing us to focus immediately on operations and optimization.
Treeline Trails demonstrates the effectiveness of our strategic management approach:
- Acquisition: We acquired this fully constructed opportunity in June 2022 in the growing Jacksonville market.
- Strategic management change: After acquisition, we implemented a key change in property management, partnering with a new team that has proven to be an exceptional collaborator with our own internal Operations team.
- Stabilization: Through this strategic partnership, the property achieved stabilization in January 2025 and has now reached 100% occupancy, generating steady cash flow.
Strategic advantages drive results
The successful stabilization of Treeline Trails can be attributed to three key factors:
- Strategic property management partnership: The decision to change property management has proven highly successful, with our new management partner demonstrating exceptional capabilities in leasing and resident satisfaction. Given their strong performance not only at Treeline Trails but at two other communities, we're looking to expand this partnership across additional properties in our portfolio.
- Optimized operational execution: Our internal Operations team worked closely with our management partner to implement targeted strategies that maximized occupancy and resident retention while maintaining efficient cost structures.
- Strong market positioning: Treeline Trails offers a compelling housing option in the Jacksonville market, meeting the growing demand for single-family rental homes that combine the space and privacy of homeownership with the flexibility of renting.
These factors have positioned Treeline Trails as a premium housing option in the desirable Jacksonville area, attracting residents who seek the quality and space of single-family living with the convenience of professional management and maintenance.
Portfolio impact
Treeline Trails joins the growing number of stabilized assets in our portfolio. The property's successful stabilization and exceptional 100% occupancy rate further validates our approach to creating value through strategic management decisions and effective operations.
This achievement is particularly significant as it demonstrates our ability to identify opportunities for operational improvement and implement changes that drive performance. The successful management partnership at Treeline Trails has already informed our approach at other communities and will continue to influence our operational strategy going forward.
As with many of our investments, the transition to stabilization delivers the steady cash flow that contributes to consistent performance across the portfolio.
