Hedge Fund Investment Boosts Property Values, Creates Rental Inventory; Growth Expected for Nashville Build-to-Rent Market, According to Kinloch Partners, LLC Founder Bruce W. McNeilage

PR Newswire

NASHVILLE, Tenn., Sept. 3, 2014 /PRNewswire/ -- Hedge Fund and Real Estate Investment Trust (REIT) investment in residential real estate is helping boost property values and creating rental inventory in Nashville, according to Bruce W. McNeilage, founder of real estate investment firm Kinloch Partners, LLC.

McNeilage made his remarks as part of a panel presentation titled "Emerging Housing Trends: Converting Single Family Homes to Long-Term Rentals" at the Tennessee Housing Development Agency's "Governor's Housing Summit" here today. 

"Hedge fund investment in single-family homes has several advantages, particularly here in Nashville," McNeilage said. "It has helped keep property values higher, which is good for existing owners. In addition, it's created a larger supply of high-quality rental homes which is particularly attractive to businesses looking to relocate to Nashville. Companies relocating here can find high-quality rental housing for their executives, who often need to rent while selling an existing home."

Hedge Fund real estate investment isn't perfect for every market, but it works well in the Nashville area. Low tax rates, low insurance rates, low cost of materials and availability of land or existing homes all combine to make Nashville a sound real estate investment.

McNeilage, through Kinloch Partners and other real estate investment partnerships, currently owns 50 pad ready residential lots in Nashville. His firm has been in the build-to-rent market in Nashville for the past nine years. He predicts the build-to-rent market will continue to grow in Nashville.

"We are seeing a significant market for high-quality rental properties and anticipate that many real estate developers will build more homes with the intent to use them as rental properties," McNeilage said. "One trend we expect to see in the coming years is entire developments, perhaps as many as 100 houses, will be built entirely as rental properties."

In addition to his investments in Nashville, McNeilage also owns lots in 16 subdivisions in Metro-Atlanta.

About Kinloch Partners, LLC

Kinloch Partners, LLC is a real estate investment company formed in 2011 by childhood friends Bruce W. McNeilage and Christopher P. Zachary, who met on the playground at Kinloch Elementary School in Dearborn Heights, Michigan, in the mid-1970s.  The company specializes in providing a path to home ownership for new homeowners through new construction, home renovation or investment in financially distressed real estate properties.

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