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 is one of the largest homebuilders in the Southeast United States has built more than 20,000 single-family homes. 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.
Recently, Twin Lakes Georgia was named the 55+ Housing Community of the Year at the Annual OBIE Awards gala. In addition, they also won Gold awards in Best Landscape Design and Best Amenity.
As a testament to the community’s award-winning offerings, 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.
In October 2023, there were 16 new home closings and 6 homes sales, continuing the strong 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.
October 2023 Sales Data for Twin Lakes
Twin Lakes Continues Strong Sales Despite Increased Interest Rates
The Reason for Strong Twin Lakes Home Sales
- A Wealthy Target Market Unaffected by Rising Interest Rates
- Ideal Location and Amenities for Active Adults
- Kolter: The #1 Active Adult Homebuilder in Atlanta
Learn More About Twin Lakes
October 2023 Sales Data for Twin Lakes
- 6 new home sales in October
- 16 new home closings in October
- 569 homes sold in total
- 436 homes closed in total
Twin Lakes Continues Strong Sales Despite Increased Interest Rates
The Federal Reserve on November 1st, 2023 chose to hold the key federal funds rate in a target range between 5.25%-5.5%, where it has been since July. This was the second consecutive meeting that the Federal Open Markets Committee chose to hold, following a string of 11 rate hikes, including four in 2023.
Fed Chair Jerome Powell stressed that the central bank hasn’t made any decision yet for its December meeting, and they are not considering or even discussing rate reduction at this time. The post-meeting statement indicated that the Fed sees the economy holding strong despite the rate hikes, a position that could prompt policymakers into a prolonged tightening stance.
While the federal funds rate did not increase in October, the expectation of 5%+ federal funds rates maintaining long into 2024 has impacted mortgage rates.
According to Bankrate, as of November 2nd, 2023, the average rate on a 30-year, fixed-rate mortgage is 8.02%, up from 7.86% one month ago.
Despite the rising mortgage rates, Twin Lakes saw steady sales in October.
The Reason for Strong Twin Lakes Home Sales
A Wealthy Target Market Unaffected by Rising Interest Rates
Twin Lakes is targeting a fast growing and affluent buyer segment—aging baby boomers. With industry average move-in age of 72, the active adult segment is right at the forefront of the baby boomer wave. Historically, 55+ age-restricted communities command strong premiums over market rate housing. In addition, since residents are predominantly former homeowners, they have built significant equity in their previous home.
Baby boomers are the wealthiest demographic in the United States, with significant buying power due to their ability to make larger down payments when purchasing homes. According to Fortune, baby boomers housing wealth totals $18 trillion—more than triple the amount owned by millennials.
As of last year, baby boomers reclaimed their place as America’s top homebuying group taking away the title held by millennial homebuyers from 2014 until last year.
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.
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.
Kolter: The #1 Active Adult Homebuilder in Atlanta
In 2022, The Kolter Group was the largest active adult single-family homebuilder in the Atlanta metro area with a 17% market share – ahead of Lennar, PulteGroup, and DR Horton. Recently, both Lennar and DR Horton announced a major investment from Warren Buffet’s holding company Berkshire Hathaway – a testament to the current attractiveness of the new homebuilding market.
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 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.
The company 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.
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 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 to complete successfully. All EB-5 funding in these projects has either been repaid or is in good standing.
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.