US: New York-based Pretium Partners has raised $1 billion to grow its rental homes portfolios.
Last summer the investment manager bought 4,000 rental homes from homebuilder D.R. Horton located in multiple US markets. It now owns 7,500 BTR homes in 37 cities and 11 states.
“Decades of under-building and under-investment have led to today’s shortage of viable housing in the United States,” Josh Pristaw, Pretium’s head of real estate, said in a statement. “That deficit can only be fixed with new capital invested to create new housing supply. We are proud to be in a position to create necessary new housing throughout the United States and eager to continue investing in new homes to expand housing choice and supply over the next decade.”
As well as SFR homes Pretium also invests in real estate, mortgage finance, and corporate debt, and is making loans to small homebuilders, according to a report by Bloomberg News. Last year the company had $51 billion in assets under management.
In 2023 D.R. Horton brought in more than a $500 million selling 3,006 single-family rental homes and 1,582 multifamily rental units to investors.
“Our rental property inventory at December 31st was $3 billion, which consisted of $1.4 billion of single-family rental properties and $1.6 billion of multifamily rental properties,” Horton’s CEO Paul Romanowski said in the company’s most recent conference call with investors. He said the company expects its sale of rental houses to increase this year.
