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Another partnership of asset management giants has announced a major investment in single-family rental homes.<\/p>\n
Atlas Real Estate<\/strong> and DivcoWest<\/strong> declared last week that they will spend $1 billion \u201cacquiring and renovating homes in high-growth states including Colorado, Arizona, Idaho, Nevada, and Utah,\u201d according to a press release. The companies entered into a joint venture that puts $250 million of equity into single-family rental homes.<\/p>\n The move aligns with the current portfolio of Atlas Real Estate, a Denver-based company that reports managing more than 4,200 housing units in the aforementioned Mountain states. But for DivcoWest the single-family rental markets represents a shift from the San Francisco company\u2019s general focus on office, retail, industrial, and multifamily spaces.<\/p>\n The joint venture announcement comes one month after homebuilding giant<\/a> Lennar Corporation<\/a><\/strong> unveiled<\/a> a new business, Upward America Venture<\/strong>, that plans to spend $4 billion on new single-family homes, fueled by a $1.25 billion equity infusion from investors including Centerbridge<\/strong> and Allianz Real Estate<\/strong>.<\/p>\n Also, less than a year ago JPMorgan Chase<\/strong> pledged $625 million<\/a> to American Homes 4 Rent<\/strong> for construction of 2,500 single-family rentals in the Southeast and West.<\/p>\n These company\u2019s plans to build or refurbish, and then rent single-family homes comes amid a sharply imbalanced housing market in which supply is not meeting demand. The record sales numbers of last fall have now been eclipsed by a story of free falling inventory. Total homes sales have been down in the U.S. for the last two months, according to the National Association of Realtors<\/strong>.<\/p>\n But while demand for single-family homes is greater than ever, a historic shortage in lumber<\/a> is ratcheting up homebuilding prices.<\/p>\n Atlas\u2019s CEO Tony Julianelle said in a statement that, \u201cThe joint venture will function to increase the inventory of single-family rentals in Atlas managed markets,\u201d and will help \u201cmeet the supply demands by providing high quality housing.\u201d<\/p>\n The post Atlas, DivcoWest prepare $1B single-family rental venture<\/a> appeared first on HousingWire<\/a>.<\/p>\n