Invitation Houses, Rockpoint Type $1B JV for Single-Household Rental Houses

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The Percentage Lease Concept is Poised to Spread

Invitation Homes and Rockpoint Group have formed a $ 375 million joint venture to acquire single family homes for rent.

Of the total equity commitment, $ 75 million will be committed by Invitation Homes and $ 300 million by Rockpoint. The joint venture is expected to invest more than $ 1 billion in total, including debt, to purchase and renovate single family homes in markets in the western US, Southeast US, Florida and Texas where Invitation Homes already owns homes. The homes are expected to be similar to the homes in Invitation Homes' existing portfolio.

Invitation Homes will provide investment, asset management and property management services to the joint venture.

The fundamentals in the single-family home markets have proven very solid during the pandemic and subsequent recession, attracting investors like Blackstone. This summer one Investor consortium led by the Blackstone Real Estate Income Trust made a preferred interest of $ 300 million in Tricon Residential of Toronto, with BREIT acquiring $ 240 million of the preferred stock.

in the a recent report from RCLCOThe company predicts demand will be much greater than the current pace of production, which could result in a significant supply bottleneck, "suggesting that the sector has a strong market opportunity in the next decade," said managing directors Gregg Logan and Todd LaRue.

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