Invitation Houses enters $300M partnership with Boston agency to purchase higher-end rental homes

Dallas-based Invitation Houses Inc. has fashioned a $300 million three way partnership partnership to assist meet the demand for single-family rental houses, the corporate mentioned Friday.

Invitation, the biggest proprietor of rental homes within the nation, will commit $50 million in fairness to the three way partnership with Boston-based personal fairness agency Rockpoint Group LLC, which is able to commit $250 million.

The funding is anticipated to deploy about $750 million, together with debt, into shopping for and renovating homes. Invitation mentioned it’s centered on “top-quality” submarkets within the West, Southeast, Florida and Texas.

Invitation can even present asset administration and property administration providers.

Invitation and Rockpoint beforehand introduced one other $375 million partnership in October 2020. Invitation mentioned the brand new three way partnership will purchase houses at larger worth factors.

“This new JV will allow us to broaden our progress alternatives and serve the rising variety of renters by selection who place a excessive premium on location,” mentioned Dallas Tanner, president and CEO of Invitation Houses, in a ready assertion. He added that the enterprise is complementary to its core funding technique.

Rockpoint has places of work in San Francisco and Dallas along with Boston. The earlier three way partnership was its first entry into rental houses.

The publicly traded Invitation has acquired greater than 80,000 rental homes throughout the nation over the last decade. In February, the owner mentioned it might make investments $250 million in Pathway Houses, a brand new “lease-to-own” firm that provides potential consumers a plan to discover a property and hire it with an choice to purchase.

Rental homes are rising in popularity for residents who’ve been priced out of possession or don’t wish to purchase a property.

Attom Knowledge Options estimates that greater than 13% of North Texas houses final 12 months have been bought by institutional traders. And traders nationwide accounted for nearly 7% of transactions, or one out of or each 14 U.S. single-family house and apartment gross sales in 2021.