We buy approved land at a discount to directly develop 'Build2Rent' investment portfolios
usaBuild2Rent.com
main site NexxusCo.com
Please review below first:
"We buy approved land at a discount to directly develop 'Build2Rent' investment portfolios"
How? Why? Because Nexxus can make stalled projects work using a unique business model. Let me explain:
The market for quality rental accommodation across the USA, is extremely buoyant and expanding. Real Estate developers will contract a construction company to build multifamily units for use as long term rentals. This is defined as 'Build to Rent'.
However recent market changes have created a huge investment opportunity that Nexxus Developments is perfectly postioned to take advantage of.
Opportunity?
90% of project sites for sale today are overvalued and not selling due to being financially modeled on market conditions 3-4 years ago. A classic 'market correction'.
How has the market changed?
Projects submitted for planning approvals in 2022/23 were underwritten in a lower interest rate environment of which a CAP rate of 3 - 4% was acceptable. Now with higher interest rates, CAP rates need to be 8-9% which is unachieveable using traditional construction methods with quoted land prices. Nexxus can achieve 12%+ CAP.
How can Nexxus achieve high CAP rates?
Nexxus will self-perform the design, foundations, plumbing and electrical inhouse. The project is completed using 'Volumetric' modular housing units from associated factories. All soft costs and construction work is direct. Housing units are supplied at net cost with no 3rd party contractor profit taking. Construction times are reduced by 50%+. with free equity of 40 - 50% from day one.
Project sucess is amplified as we are targeting and negotiating discounts on already approved sites. We are receiving a high level of interest to do business from land owners, investors and commercial realtors all of whom are stuggling to sell at elevated appraised values.
This 'At Cost' integration is extremely efficiant and profitable. Our team's aim is to strategically Build, Rent, Refinance & Repeat, developing 1 million sf (1000 units) per year ongoing from 2026.
Any other market forces affecting traditional constructon?
Yes, President Trump has effected:
A. The Labour market. It is now far more difficult and expensive to hire general worksite labour.
B. Building material costs to a traditional developer are near prohibative due to import tariffs. Locally produced materials are in short supply and are more expensive.
Both these issues are vastly mitigated using our direct model and factory based solution.
Using an apartment project to illustrate an investors POV:
Nexxus have purchase and construction debt agreed and require an investor partner to complete the capital stack.
At project completion the investor's initial investment is refinanced and returned and crucially they retain long term, free cash flowing equity. Nexxus 'profit' is an equity split per project alongside investors.
This 'perfect storm' is the greatest real estate investment opportunity since 2008/9. We require a solid qualified investor who understands our MO, capacity and has the vision and capital to move ahead TODAY!
We have options, contracts and market knowledge of various approved multifamily sites mainly around Metro Denver Colorado but which can be expanded throughout Western USA.
Current ready to build include:
Apartment sites with 845 units approved
Townhome sites with 300 units approved
Current negotiations include a further 1200+ units
Team can meet in Ire/UK.
Ph. +1 909 999 8850 or Andrew@NexxusCo.com
Main site : www.NexxusCo.com