Crescent Communities, Heitman Form $340M BTR Venture
It's the partners' second JV.
Crescent Communities and Heitman are expanding their presence in the build-to-rent sector with the formation of a second joint venture that could see a total investment of $340 million for development of six single-family rental communities in Sun Belt and other emerging markets.
The partnership will begin with an initial commitment of $240 million, expandable by up to $100 million, for the development of more HARMON by Crescent Communities-branded properties.
The two firms first teamed up in May of last year with a collaboration that had an initial commitment of $235 million that later increased to $345 million. In sum, the companies will invest at least $585 million in BTR developments.
The first JV invested in six of the communities across North Carolina, Georgia, Florida, Tennessee, Texas and Arizona. Those properties are nearing completion for the initial community openings. They are: HARMON Ascend in Phoenix, HARMON Ashton Oaks in Tampa, Fla.; HARMON Cedar Run in the Atlanta market; HARMON Jefferson Village, Greensboro, N.C.; HARMON Melissa in Dallas and HARMON West Meade in Nashville, Tenn.
The partners expect the next BTR investments to be in those markets in addition to Colorado, reinforcing Crescent’s strategy to expand in high-demand housing markets. The new properties will also become part of the HARMON brand, offering residents the benefits of single-family living without the burdens and costs of ownership. Each community will feature townhomes and/or single-family houses, energy- and water-efficient construction and curated amenity spaces.
Ashish Karamchandani, managing director and co-head of acquisitions at Heitman, pointed to Crescent’s proven track record in the sector. Karamchandani said they see Crescent and the HARMON portfolio as well-equipped to lead the BTR sector as demographic and affordability trends continue to fuel rental demand.
Closer look at Crescent properties
Founded in 1963, Crescent’s development portfolio has included more than 95 multifamily communities and 26 million square feet of commercial space. In addition to the HARMON by Crescent Communities brands, the Charlotte, N.C.,-based firm’s multifamily brands include NOVEL and RENDER.
Last month, the firms opened the first rental homes at HARMON Cedar Run, a BTR property with 151 units in the Atlanta suburb of Lawrenceville, Ga. It is the first such community to take shape in metro Atlanta. The partners acquired the site earlier this year as part of their first collaborative effort. The community occupies 38 acres, about 36 miles northeast of downtown Atlanta and 12 miles from Interstate 85. It features three- and four-bedroom townhomes and single-family homes. Amenities include a swimming pool as well as pickleball and basketball courts.
Also in the metro Atlanta area, Crescent and equity partner Phoenix Capital Management opened RENDER Stockbridge, a 297-unit multifamily community in Henry County, Ga., in July. The property offers a mix of one-, two- and three-bedroom apartments. Construction began in late 2023, facilitated by a $45 million construction loan from CIBC Bank USA.
Crescent broke ground in June on NOVEL UHill, a 400-unit multifamily community in the University Hill section of Durham, N.C. Slated to deliver its first residences in late 2026, the development will include a five-story building along with 19 townhomes on a 6.5-acre site.
