Walton Global Holdings United States, a Scottsdale-based global real estate investment and property management firm with $ 3.4 billion in assets under management, and SVN | SFR Capital Management (SVN | SFR), a private commercial real estate investment company dedicated to the single-family rental housing sector, has announced the formation of a joint venture that will build and operate single-family residential rental housing to build communities in L nationwide.
The partnership provides for new constructions of several Build-for-Rent communities each year over the next several years. The first purpose-built communities are expected to begin development in 2022 in Colorado and Texas. They will be built by a homebuilder selected by the joint venture partners for aggregation into a large-scale portfolio of rental housing communities.
“The partnership with Walton is a tremendous opportunity to leverage and collaborate through our collective platform of land, development, home construction, asset management and rental home operations to provide residents with United States quality, affordable housing in beautiful, well-located planned communities. Said Jeff Cline, CEO of SVN | SFR Capital Management. He added: “With the persistent shortage of affordable housing and the strong growth in rents expected, we believe that the timing of the market, access to land and our strategic vision will lead us to become a leading group in the investment segment in construction for rental. “
According to Bill Doherty, CEO of Walton, “acquiring land in growth areas is one of the biggest challenges in the industry.” He added, “Our 81,000 acre land portfolio offers land and lot availability that is unique in this industry. Our more than 180 master plans in the United States were acquired years in advance, so our joint ventures have access to an established pipeline that grows. We also recognize that not all subways are created equal; each metro has its own needs and requirements. Our Build-for-Rent program is based on a highly strategic and selective approach. We are looking for key partners who meet certain criteria in various regions of the country to execute our plan. We are very happy to work with SVN as one of our privileged partners.
COVID-19 has tested and proven the strong financial performance and occupancy growth in the single-family rental home industry. Based on the largest public, single-family rental and Build-for-rent transactions, John Burns Real Estate Consulting estimates the total transactions for 2021 (January to June) to be over $ 18 billion. Equity investments in the space are expected to increase in 2022 and 2023.
With demand for single-family housing and build-for-rent developments at an all time high among all segments of the population (including millennials, young families with children and baby boomers), all of whom are looking for space, a Location and professional management of the home, the joint venture targets other land development communities in key markets across the country.
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