Townhome and build-to-rent communities are a single-family floor plan financed as multifamily. Across the K-Deal securitizations closed from January through August 2026, the loans price almost in line with conventional apartments, borrowers overwhelmingly choose 5-year terms, and newer purpose-built product trades at a large premium per unit.
- Loans tracked 50 · 7,732 units
- Cut-off loan balance $1.04B
- Five-year share 73%
- Weighted cap rate 5.49%
How the loans are priced.
The weighted coupon is 5.20 percent, about 11 basis points over conventional loans of the same term. Leverage is 64.0 percent and coverage is 1.37x, in line with garden apartments. The capitalization rate is 5.49 percent against 5.43 percent for conventional loans. Value per unit is $206,000 against $220,000, and the loan is $130,000 per unit against $141,000. Only 12 percent of the balance is 10-year, against 33 percent for conventional loans. Lenders treat a professionally managed community as multifamily. Scattered-site portfolios fall outside this execution.
The communities.
The class runs from 1950s townhome communities to post-2020 purpose-built rentals. The median year built is 2005. Ohio, at 16 percent, and New York lead by balance. Seventy-three percent of fixed-rate balance chose a 5-year term, against 49 percent for conventional loans. Communities built since 2010 were capped at a median 5.37 percent and appraised at $304,000 per unit, against 5.69 percent and $168,000 for older stock, a premium of about 81 percent. Revenue per unit is about $19,800, close to conventional apartments, at an expense ratio of 43.6 percent. In August 2026 the average build-to-rent rent was $2,246, occupancy was about 95 percent, and starts in 2025 were down 19 percent from 2024.
What that means for debt.
An illustrative coupon, marked to Treasuries at the end of September 2026, is about 6.39 percent — roughly 118 basis points above the first-half pricing in the tape. Sized to 1.25x coverage on a 30-year amortization, the loan is about $116,000 per unit, 11 percent below the $130,000 in the tape. With 73 percent of the class on 5-year paper, many owners face a refinance sooner, and at higher Treasuries, than the conventional book. Post-2015 product appraises well above older stock, which is where a lease-up can still support proceeds.
Loans are identified by market only. Debt figures are illustrative, marked to Treasuries as of 28 September 2026. For discussion only; not a valuation opinion, investment advice, or an offer to lend.