They created two separate limited liability companies to handle different parts of the business in order to tap into a $190 billion annual market that is expected to double during the next five years.
Paget serves as CEO of HomeSlice Life LLC, the property management company, while Chatterjee is CEO of HomeSlice Holdings, the holding company that focuses on finance and acquisitions.
They raised nearly $1 million from private investors to start HomeSlice Group and expect to close out 2019 with $4 million in revenue.
That revenue comes from management fees of about 100 rental units. The company continues growing, adding six units a month.
By 2020, HomeSlice’s revenue is expected to double to $8 million as the cofounders look to buy multifamily properties to be turned into short-term rentals. They also are targeting multifamily residential property owners and operators as well as developers looking for property management services to diversify their portfolios.
The company currently operates 26 properties in four cities with plans to expand into four more this year.
HomeSlice Holdings will be the investment sponsor in real estate syndication of commercial real estate assets, with plans to operate in at least four new markets. In Arizona, the target markets are metro Phoenix, Flagstaff and Tucson. Other target markets include Denver, Seattle, Washington, D.C.; Miami, Orlando and Tampa, Florida; and three cities in Texas: Austin, Houston and Dallas.
“Operating and acquiring multifamily properties allows us to justify costs of entering new markets due to economies of scale,” Chatterjee said. “We are already operating in four markets but looking to have a presence in several major metros and top growing cities.”
The Phoenix-based company recently joined forces with Modus Development’s Ed Gorman on a new investment opportunity in downtown Scottsdale’s arts and entertainment district.
“We really like the product Modus created,” Chatterjee said. “It appeals to people who are environmentally conscious. It’s all about sustainability and net zero energy — being efficient.”
That project at 7300 Minnezona Ave., known as MZ2, boasts high-tech, high-touch features. For example, shade screens automatically go down as the sun comes up to increase energy efficiency, and the units also offer other home automation features.
Those units average $600 a night.
HomeSlice Life also is reaching out to potential short-term rental customers, offering a boutique hospitality experience in a “home-tel” setting, offering both luxury and affordable boutique units to appeal to a range of guests, Paget said.
Phoenix Business Journal
For more information contact Ellie@homeslice.life