Altru Building Group - Spot Lot Florida Builders

Altru Builders is a spot lot focused fee builder throughout the state of Florida.

We build new houses for residential real estate invwestors.

Paul Gozzo

1. Introducing
Altru
Building
Group
Scattered lot
Homebuilders
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2. Spot Lot Homebuilder
Focused on Florida Growth Markets
Altru Building Group is a Florida based construction management group with the team, tools, and technology to deliver
new houses built on scattered lot locations throughout Florida. We divide the roles splitting responsibilities between
Builder and General Contractor allowing for flexibility in scaling up and down around market cycles. From land
acquisition to project decisioning for all day two activities including architectural plans, purchasing materials, in-field
construction, and ongoing reporting – ABG runs the entire process from research to Certificate of Occupancy.
Altru Building Group is seeking partnerships with residential real estate investors.
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3. Why Florida ?
+ Single-Family Housing in construction in Florida averages 160,000 – 170,000 new units per year
+ Currently there are roughly 3,000 BTR units under construction in the state of Florida
+ Currently, there are about 9,000 BTR units in planning throughout the state of Florida
+ Nationally, BTR is hovering around 10% of all new home construction starts, Florida is behind the national average
“We see the potential stemming from various rental household types
(millennials as well as empty nesters). The recent surge in BTR construction
represents developers' efforts to try to catch up with pent-up demand, which
is far above supply.”
Brad Hunter, Hunter Housing Economics
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4. Why a SFR BTR & Spec hybrid model?
Target Customer Renting, Buying, or Renting to Own
Young Families
+ Yards for children and pets to play
+ Community amenities designed well for their
needs
+ Great Schools
+ Zero Maintenance with new home lease
+ Greater Flexibility
+ Upsizing with growing family
+ Options for work from home and within the
community (WeWork Clubhouse)
+Proximity to Activities (walking trails, Publix,
gyms, restaurants)
Millennials
+ New home pride
+ Previously in Class A MF
+ Attracted to flexibility of lease vs.
ownership (commitment)
+ Do not qualify for ownership; student
debt, lack of deposit money
+ Flexibility with a physical home having
more space for:
+ Hosting social gathering
+ Pets
+ Work from home
+ Co-living with a roommate or two
Florida Migration
+ Younger boomers seeking
lifestyle change
+ Warmer weather
+ Tax advantages
+ Zero home maintenance
(new house warranty)
+ Flexibility of lease before
purchase
+ Fixed Income
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5. Typical BTR – contiguous community 100-150 units
Time Frame – 2+ years to acquire/entitle/develop
Risk – development, construction, rent compression
Returns – 15% - 25% cash on cash
Fund Example – 10% pref & 25% or 7% pref and 60/40
Typical SFR – source/renovate/lease
Time Frame – 2/3 & 5+ years
Risk – inventory, renovation, rent compression, R&M
Returns – 10-15% cash on cash
Fund Example – pref & waterfall
Spec Build – building to sell on open market
Time Frame – 6 months - 1 year
Risk – first time homebuyer slows, financing
Returns – 15% - 25% cash on cash
Hybrid SFR/BTR/Spec – scattered lot building to rent and sell
Time Frame – 1+ years depending on underwriting, available inventory, volume of strategy
Risk – hedged through programmatic starts with optionality
Returns – 15% - 25%+ cash on cash, financing land and construction juice returns,
tax structure affects performance
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Investment Strategies and Return Profiles

6. Altru
Building
Group
Scattered lot
Homebuilder
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