Q&A with Robert Lee, CEO, Sylvan Road
A Conversation About the Real Estate Industry and the Aging Housing Stock
Robert Lee is the Chief Executive Officer and Co-Founder of Sylvan Road and has been involved in all phases of the firm’s development since its inception in 2012. Among other things, Rob’s role is to curate the firm’s vision, devise a blueprint for its execution and to manage the daily operational direction of the firm. Rob was part of the original team where he played a pivotal role in helping to pioneer the institutional asset class which has become single family rental. Rob is focused on helping investors and partners achieve their vision by orienting them towards action.
REI INK sat down with Rob to discuss the real estate investment industry and specifically about the country’s “aging” housing stock.
Rob, can you give a general overview of Sylvan Road?
Sylvan Road is an investment firm focused exclusively on single family real estate. We are a technology-enabled, data-centric, idea-driven firm that utilizes state-of-the-art proprietary analytics on our platform. We were one of the earliest pioneers in the sector and currently have over $2.3 billion in assets under management and through our operating affiliates, we oversee the complete management life cycle of single-family investments.
The single-family rental industry is an essential part of America’s housing marketplace, and Sylvan Road is proud to be a part of this vital and growing community. We provide affordably priced, top-quality homes in desirable neighborhoods that serve the distinct and varying lifestyles of our residents.
What is your approach to real estate management?
We maintain a diverse portfolio of homes with a wide geographic footprint and take a vertically integrated approach to real estate management, controlling all aspects of the investment life cycle from acquisition to disposition. With our nation’s housing stock aging, one niche where we have particular experience is ‘vintage’ homes. These are homes that were generally built in the 1950s and 1960s.
What makes these homes so interesting?
Well, they tend to be unique, they have character and charm, and they are decidedly not “cookie cutter” homes. They were built to last, and many aspects of their construction cannot be replicated today. The old adage: “They don’t build ‘em like they used to” is decidedly true when it comes to these homes.
They were built with wood made from old-growth trees, so they are more resistant to rot and warping. The walls are often built with plaster and lathe, making them structurally stronger than the drywall construction of newer homes. In addition, these homes are typically located in well-established communities, with mature trees, large backyards, close to employment, good schools, and town amenities. They are in walkable areas.
Finally, you just cannot replicate the charm and nostalgia or some of the design elements found in these homes like authentic stained-glass, original crown molding and real, hardwood floors.
However, this aging cohort of our housing stock will become structurally obsolete unless work is done to bring it up to today’s standards including energy efficiency and other systems improvements. This refurbishment of our nation’s older housing stock not only provides quality living for residents, but also delivers a societal benefit that cannot be overstated.
What about the problems facing the industry today, such as the current housing shortage?
It is no secret that there is a severe housing shortage in this country. More than 3.8 million housing units are needed today, and this number is growing every year. In many states across the country, the challenge facing the housing market is simple: there is not enough supply. The supply of housing in the U.S. has not kept pace with demand — for years. This presents a problem that can only be solved by providing a diversity of housing types, which includes renovated homes. We simply have not and cannot build enough housing to keep pace with the demand. In fact, there is greater demand for housing in the United States today than there has been in decades. We need to expand our supply of homes, and to invest in our aging housing stock.
How does Sylvan Road and “vintage” homes come into play with the housing shortage?
Currently, the average age of homes in the US exceeds 40 years, the oldest it has ever been. The government estimates that the nation’s housing stock needs repairs exceeding $149 billion. Sylvan Road is addressing this need as we commit to the communities where we invest, build, and renovate. We are providing families with more options for stabilized, quality and affordably priced housing than ever before.
At a time where housing markets across the country are challenged by ongoing supply constraints and affordability concerns, we are working to enhance and expand the diversity of available housing opportunities. We believe that every person, no matter their income, background, or profession, deserves access to a quality home in a quality neighborhood. Our interest and investment in ‘vintage’ homes directly impacts this equation.
Do you have any final words on Sylvan Road’s contributions to the real estate industry?
We keep these vintage homes from obsolescence. We increase the nation’s inventory of available homes. We create a greater range of choices for housing consumers. We provide high quality homes in desirable neighborhoods to families who desperately need them.
In the end, we directly contribute to the vitality and vibrancy of neighborhoods and communities. That is a total win in our book.
Sylvan Road manages capital for blue chip institutions, insurance companies, credit and real estate funds, asset managers and family offices. They build performance-focused investment portfolios through trusted, cooperative institutional partnerships.
Sylvan Road is proud to be the industry standard bearer for single family real estate serving this
$4 trillion asset sector.
Discover more about Sylvan Road at https://sylvanroad.com/
