U.S. Build-for-Rent Housing Joint Venture Opens Opportunity Nationwide
InBusiness Greater Phoenix, 2021/07/08
SVN | SFR Capital Management (“SVN | SFR”), a private commercial real estate investment firm dedicated to the single-family Build-for-Rent (“BFR”) housing sector, and Walton Global Holdings USA (“Walton”), a global real estate investment and land asset management company with US$3.4 billion in assets under management, announced the formation of a joint venture that will construct and operate BFR single-family residential rental home communities nationwide.
The partnership anticipates new construction of multiple BFR communities annually over the next several years. The first purpose-built communities are slated to commence development in 2022 in Colorado and Texas that will be constructed by a homebuilder selected by the joint venture partners for aggregation into a large-scale portfolio of rental home communities.
“Partnering with Walton is an exceptional opportunity to leverage and collaborate across our collective land, development, homebuilding, asset management and rental home operating platform to provide residents in the U.S. with quality, affordable housing in beautiful, well located master-planned communities,” said Jeff Cline, CEO of SVN | SFR Capital Management. He added, “With the continuing shortage of affordable homes and strong projected rent growth, we believe timing in the marketplace, land access and our strategic vision will lead us to become a leading group in the BFR investment segment.”
According to Bill Doherty, CEO of Walton, “Acquiring land in growth areas is one of the industry’s biggest challenges.” He added, “Our 81,000-acre land portfolio offers availability of land and lots that is unique in this industry. Our more than 180 master plans in the U.S. have been acquired years in advance, so our joint ventures have access to an established pipeline that’s growing. We also recognize that all metros are not created equal; each metro has its own unique needs and requirements. Our BTR program is based on a highly strategic, selective approach. We are searching for key partners that meet certain criteria in various areas across the country to execute our plan. We are very pleased to be working with SVN as one of our select partners.”
COVID-19 has tested and proven the strong financial performance and occupancy growth in the single-family rental home sector. Based on the largest public, single-family rental and BFR transactions, John Burns Real Estate Consulting estimates total 2021 transactions (from January through June) to be over $18 billion. Equity investment in the space is expected to grow in 2022 and 2023.
With demand for single-family housing and BFR developments at an all-time high across population segments (including millennials, young families with children and baby boomers), all of whom are seeking space, location and professional home management, the joint venture is targeting additional land development communities in key markets across the country.
SVN | SFR Capital Management, (“SVN | SFR”), based in New York, NY, is a private, commercial real estate investment firm dedicated to investment in the Build-for-Rent (“BFR”) asset class across the U.S. SVN International Corp. (“SVNIC”), a globally recognized, Boston-based, full-service CRE advisory firm, is an affiliated entity. SVN is advised by McIntyre Capital Partners, LLC, a registered broker-dealer with the U.S. Securities and Exchange Commission (“SEC”) and a member of FINRA and SIPC. SVN | SFR intends to aggregate approximately 35,000 new construction BFR homes in the near-term through an initial allocation of $2 billion in equity and debt capital from institutional investors, to aggregate into a large-scale commercial real estate portfolio for eventual disposition.
Walton is a privately owned, leading global real estate investment, land asset management and administration company focusing on strategically located land in major growth corridors for more than 42 years. The company manages and administers US$3.4 billion of real estate assets in North America, on behalf of its investors and business partners. Walton has more than 98,000 acres of land under ownership, management and administration in the United States and Canada. Key entities in the Walton Group of Companies include Walton Global Holdings, Walton International Group and Walton Development and Management