Orion Haus adds ten buildings and more than 1,500 units to its US portfolio
United States: Miami-based multi-family management company Orion Haus, which creates buildings suitable for short-term rental, adds ten buildings and 1,588 units to its national portfolio, including in Atlanta, Austin, Houston, Memphis and Orlando, in what it claims to be “the largest short-term multi-family rental transaction in history.”
The transaction will allow Orion Haus to better serve its tenant community as it seeks to capitalize on the growing demand for flexible housing solutions. It may also play a role in addressing supply issues that were referenced in Airbnb’s recent Q1 earnings call, when the company said it was running out of the number of hosts it would need. to manage the influx of travelers venturing after the pandemic.
The company is growing rapidly and has already signed and verified over 8,000 pre-lease agreements for 2021 and 2022 in markets such as Fort Lauderdale and Tampa Bay / Clearwater, Florida; Charleston, South Carolina; Charlotte, North Carolina; Dallas, Texas; and New Orleans, Louisiana.
Although the short-term rental inventory of Orion Haus is only slightly lower than that of Sonder, traditionally a primary rental company that is expected to go public through a special purpose acquisition company. [SPAC] With a valuation of $ 2.5 billion, CFO Scott Liebman was quick to point out that his company operates under a different business model.
He said: “Orion Haus is not a master lease apartment hotel company. Orion Haus is a whole building system that enables home sharing for all residents, allowing residents to create personal income and building owners to see double-digit increases in NOI [net operating income].
“When a tenant finds that he has $ 7,000 in reservations in the months following the renewal of his lease, he renews.
“The national average turnover is 52%, but Orion Haus is only forecasting a churn rate of 35%. This reduction in sales combined with a reduction in vacancy, rental concessions and marketing costs allows our building owners to save up to 62% each year, ”he added. .
Founded in 2020, Orion Haus says its properties create a 10% higher NOI in managing multi-family communities and increase demand for longer-term lease income. Its residents can sublet their available units for as long as they wish, from one night to an extended stay under a 12-month lease, and all properties are fully staffed to assist guests. residents and guests.
Over 15,000 tenants are currently on Orion Haus’s waiting list and are about to sign 12-month leases in the company’s colocation communities.
The company expects further acceleration in the growth of its portfolio and brand, according to Liebman.
He said: “We are looking for an immediate agreement in the South East. We could easily fill 25 empty buildings this year.