Austin-based Casata Corp., a developer of small home rental communities, is turning its gaze on San Antonio as it expands across the rest of Texas.

The company, founded in 2020 by developer Aaron Levy, is scouting five locations around San Antonio for a 200-unit community of built-to-rent homes with floor plans ranging between 400 and 800 square feet.

"We like cities where jobs are being created," Chief Operating Officer Zain Mahmood told San Antonio Business Journal.

The company also looks at the entertainment and shopping options nearby.

Mahmood, who was introduced to Levy through mutual friends and brought on as co-founder, said that when the group set up its pilot project, Casata Austin, the community was 82% leased before construction ended. An Aug. 18 Instagram post indicated the community, at 10400 Old Manchaca Road in South Austin, is now fully leased.

Casata, which is wrapping up its series A funding round, is looking at spending $200 million to $250 million in the Lone Star State. Besides San Antonio, it is planning on expanding into San Marcos, Dallas, Houston and Bastrop, with plans to eventually go national.

"We think that micro living will account for 5% of the national rental market at a minimum," Mahmood said.

The company was also attracted to San Antonio because of a purported shortage in affordable housing options. In Austin – where the median apartment rate is $1,682 — Casata's units are priced between $1,400 and $1,900 a month.

"We do a very detailed study of the market and apartment rental and decide on future rent," Mahmood said. "Our goal is to be competitive with local rent structure."

"Casata isn't ideal for families who are looking for lots of space," Mahmood explained, noting that traditional housing is probably a better fit for larger families. "We attract people who are more interested in experiences than assets."


Source: Austin Business Journal

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