JPMorgan Chase & Co. is rethinking single-family rentals and is partnering with Haven Realty Capital in a joint venture.
The partners plan to acquire and develop $1 billion worth of construction rental communities nationwide. They expect him to put $415 million into the venture. JP Morgan advises institutional investors about it.
Targeting Sun Belt homebuilders, the partners will focus on communities of 50 to 200 homes ranging from 1,500 to 2,500 square feet. Seed investments include his three communities in Atlanta, representing about 250 households. The partners expect to close the transaction within the next three months.
According to Haven founder Sudha Reddy, partners see an opportunity to capitalize on the slowdown in home construction.
“The for-sale housing market has been severely hampered by recession fears, inflation and rising interest rates that are straining homebuilders and their ability to increase housing stock,” Reddy said in a press release. rice field.
Another Haven executive said in a release that despite turmoil in other sectors of the housing market, “single-family rental industry fundamentals remain strong.”
Investors are trying to meet demand for single-family homes from people who are unprepared to buy due to recession concerns and rising mortgage rates and home prices. Invitation Homes is reportedly looking for partners. $1 billion joint venture in the single-family rental sector.
Single-family rentals grew rapidly during the first two years of the pandemic, fueled by sustained demand and a shortage of homes for sale. Construction rental housing fastest growing housing sector The country has delivered great returns to investors as rents have risen.
As with all joint ventures, the success of the JP Morgan and Haven transaction depends on more than market conditions.Last week, Arizona-based homebuilder Taylor Morrison and developer Christopher Todd Community ended their partnership in a build-to-rent space.
JP Morgan has played in this field before. Two years ago, the bank’s wealth management department increased investment Rent went from $250M to $625M in just months after the partnership was formed.
Haven operates 35 communities in nine states with a total of 3,500 homes.