Twin Lakes Georgia, a single-family active adult home development for seniors and retirees near Atlanta, Georgia, remains one of the most successful EB-5 projects on the market. Part of what makes this project a great option for EB-5 investors is its consisitently strong sales due to strategically targeting older, more affluent buyers. This target market is much less impacted by the increased interest rates because of their ability to make larger down payments or buy the home entirely with cash.
Twin Lakes is being built by The Kolter Group. Kolter has a track record of developing single-family homes—they’ve built more than 20,000 houses. Their Cresswind brand focuses on building active adult communities like Twin Lakes. Kolter’s market knowledge and ability to perform in a difficult economy has driven this project’s financial success.
Twin Lakes has kept up a strong, consistent sales volume throughout 2022 and 2023. Sales have remained high despite increasing average mortgage rates during this period.
Twin Lakes had an average of 11 monthly home sales in 2022. The project has kept up the same monthly average in 2023. In September 2023, 13 homes were sold, continuing the strong sales momentum.
Strong sales result in more than just profits, it means job creation for EB-5 investors. Financial success and job creation are the two key factors that make Twin Lakes one of the safest EB-5 projects available. EB-5 investors can have confidence they will be repaid and that enough jobs will be created for them to qualify for Green Cards.
In this article, we explain the reasons behind Twin Lakes’ exceptional success in a high-interest-rate environment.
September 2023 Sales Data for Twin Lakes
Twin Lakes Continues Strong Sales Despite Increased Interest Rates
The Reason for Strong Twin Lakes Home Sales
Learn More About Twin Lakes
September 2023 Sales Data for Twin Lakes
- 13 new home sales in September
- 11 new home closings in September
- 563 homes sold in total
- 420 homes closed in total
Twin Lakes Continues Strong Sales Despite Increased Interest Rates
The graph below shows the rising federal funds rate starting in January 2022 through September 2023, and Twin Lakes home sales over the same period.
After hiking interest rates 11 times since March 2022, the Federal Reserve opted to skip another increase during its September meeting, keeping the federal funds rate in a targeted range between 5.25%-5.5%, while also indicating that it expects one more hike before the end of the year and fewer cuts next year.
While the federal funds rate did not increase in September, the expectation of 5%+ rates maintaining into 2024 has impacted mortgage rates.
According to Bankrate, as of September 28, 2023, the average rate on a 30-year, fixed-rate mortgage was 7.83% — a significant increase from a month earlier.
Despite the rising mortgage rates, Twin Lakes saw steady sales in September 2023 – above average for the year.
The Reason for Strong Twin Lakes Home Sales
Kolter: The #1 Active Adult Homebuilder in Atlanta
The Kolter Group is one of the leading single-family home developers in the United States. In 2022, they were the largest active adult single-family homebuilder in the Atlanta metro area with a 17% market share – ahead of Lennar, PulteGroup, and DR Horton. Additionally, both Lennar and DR Horton recently announced a major investment from Warren Buffet’s holding company Berkshire Hathaway – a testament to the current attractiveness of the new homebuilding market.
Kolter has a strong reputation and excellent underlying financials. The company has been able to secure loans from five of the 10 largest banks in the United States. It has over $1.5 billion of loan commitments from major lenders.
The company has an impeccable track record of repaying billions of dollars in debt. In its 25+ year history, Kolter has never failed to repay a loan or complete a project.
Kolter has invested in over 180 projects worth over $24 billion and is led by an experienced team with over 200 years of collective experience in real estate.
Kolter has also received numerous accolades and awards. Among these, it has been named one of the top 25 largest private single-family home builders in the U.S.
The company’s projects, particularly its Cresswind brand for active adults over 55, have been recognized nationally. Twin Lakes is a Cresswind-branded community.
Kolter and EB5AN have worked together on 10+ prior EB-5 projects. All prior Kolter–EB5AN projects have either been completed as planned or are on track. All EB-5 funding in these projects has either been repaid or is in good standing.
Ideal Location and Amenities for Active Adults
Seniors and retirees who are looking for new housing often want to be close to a major urban center. Living close to a large city gives them access to healthcare, transportation, shopping, and other key services and amenities.
Twin Lakes is only one hour away from Hartsfield–Jackson Atlanta International Airport. This airport is a central transportation hub and home to Delta airlines. The Atlanta metro area is also known for its world-class healthcare.
In addition to having access to Atlanta and other local businesses, Twin Lakes offers an appealing list of on-site amenities. These include a state-of-the-art clubhouse, events spaces, and a variety of athletic and recreational facilities. Many of these amenities are already completed and open to residents.
A Wealthy Target Market Unaffected by Rising Interest Rates
Twin Lakes is an age-restricted community for adults aged 55 and over. Senior citizens are one of the wealthiest demographics in the United States, with significant buying power due to their ability to make larger down payments when purchasing homes.
According to a report by the National Association of Realtors, seniors aged 55 and older recently made up over 21% of all home buyers. This age group tends to have significant financial assets saved over the course of their careers. They tend to have retirement income and equity in their current homes.
Senior citizens often enter the homebuying market with specific objectives. According to a 2020 report by the Joint Center for Housing Studies at Harvard University, 77% of seniors are homeowners. Many are looking to downsize and move south into a warmer climate. This often means they sell a higher-value home to buy a less expensive one. Twin Lakes’ affordable homes are ideal for this buyer profile.
With savings and equity at their disposal, many seniors make substantial down payments. And, in many cases, seniors pay for new homes in cash, without the need for a mortgage.
About 50% of buyers in Twin Lakes pay in cash instead using a loan.
Because Twin Lakes has strategically targeted seniors, it will continue to benefit from their buying power, despite the higher cost of borrowing.
Learn More About Twin Lakes
To learn more about the EB-5 immigration process and how Twin Lakes can offer your family a safe path to U.S. immigration, schedule a free consultation with EB5AN.
