The Garrett Cos., a national multifamily developer and builder, has embarked on a new business strategy. Since its inception in 2014, the company has been an opportunistic builder. Now it plans to be a medium- to long-term owner and is branding its new properties as Garrett Residential.
According to president Rob Martinson, macroeconomic factors of higher interest rates, and the resulting higher cap rates, and potentially lower property values have caused the company to want to wait out market conditions by holding communities longer than they traditionally have.
“The opportunity to hold properties longer presented itself because of the volatility in the market and us wanting the flexibility that we need to execute on our business plans,” he says.
He notes it’s still the same business model Garrett has always executed.
“The factors that are affecting the industry have impacted different groups in different ways. Some have been forced to slow the pipeline down because deals don’t pencil, some have been forced to sell because they are up against restructurings or maturities,” he says. “For us, we still see the opportunity to produce units at a high volume today, but we’re modifying our plan to allow for more flexibility as an owner while still delivering above-market risk-adjusted returns to investors.”
However, Martinson adds the company still has a fiduciary responsibility to its investment partners and will remain entrepreneurial from that perspective. If a buyer comes along with an above-market price, it will pivot its strategy to execute on that transaction.
As part of the business strategy, new developments coming online will be branded as Garrett Residential. The first community to launch under the new brand is the 202-unit Garrett Forum, which came online the first week of October, in Fort Myers, Florida. The 252-unit Garrett Uptown in Chandler, Arizona, and the 248-unit Garrett Mesa in Mesa, Arizona, also began pre-leasing with the new branding this month.
By the end of the year, Garrett will have just over 4,500 units owned and managed, with approximately 1,000 units having the new branding. Seven more developments with 1,545 units are slated to launch in early 2026. By the end of May, the company’s owned and managed portfolio will reach nearly 6,100 units, with 40% of the portfolio expected to branded as Garrett Residential by that time.
Garrett’s portfolio has a focus on attainable housing, primarily serving households earning between 80% and 120% of the area median income.
“The U.S. still has a housing deficit. We need housing that is attainable for working people. What we choose to deliver is high-quality value to the middle market,” says Martinson.
Its new properties generally offer consistent floor plans and amenities, including full-sized washers and dryers in all units, resort-style pools and spas, fitness centers, dog parks, coworking and private office spaces, and event programming for residents.
“The new branding as Garrett Residential reflects our commitment to quality, consistency, and exceptional service, reflecting our core company values,” says Heather Gaff, senior director of leasing operations at Garrett Residential. “The branding helps us create a reliable and overarching experience from the first interaction. Over time, the result should be even greater demand for our communities.”
The Garrett Residential branding also comes on the heels of the company bringing property management in-house, which allows for greater accountability to its residents and flexibility for its team.
Martinson adds the branding will continue to build awareness and help the vertically integrated company become a household name in the industry.
“With the Garrett brand, investors and buyers know our products for quality, site selection, and product type. We want our residents and people in the community to view the Garrett brand the same way,” Martinson says. “One of our core values of excellence permeates across every component of the real estate cycle—from site selection to relationships and ultimately to our investors, construction team, and property management team. By branding a project as Garrett from the beginning to end takes us all back to delivering excellence through every step of the process.”