US: J.P. Morgan Global Alternatives is teaming up with developer developer Haven Realty Capital to acquire and develop more than $1 billion in new singe-family rental communities.
The JV has already targeted three communities of around 250 homes in Atlanta for their initial investment
A spokesperson said J.P. Morgan’s $415 million equity investment would “provide long-term capital for Haven to continue to execute its business plan in the BTR space, working with homebuilders.”
“The for-sale housing market has been significantly hampered by recession fears, inflation and rising interest rates, placing a burden on homebuilders and their ability to add to the housing stock,” said Sudha Reddy, founder and managing principal at Haven.
Reddy said the partnership would allow them to continue working with homebuilders, many of whom will sell the newly built community to Haven to lease to residents.
The number of single family BTR homes under construction in the US has increased 106 per cent year-on-year, according to Fixr.com.
The JV will target developments of 50 to 200 homes, ranging from 1,500 to 2,500 square feet, primarily with three- and four-bedroom and two- and three-bathroom floor plans, including two-car garages.
“We’re pleased to be able to partner with Haven to continue to provide the attractive, newly-built, larger single-family homes for rent that more and more American families seek,” said Ryan Holgan, executive director, real estate Americas, at J.P. Morgan Asset Management.
