BGO and 1Sharpe Form Partnership for BTR Communities
The venture has chosen a Phoenix asset for its first buy.
The partnership has acquired a Phoenix-area asset. Image courtesy of BTO
BGO has expanded into the built-to-rent sector by forming a strategic partnership with 1Sharpe Capital. BGO will invest $500 million, acquiring an ownership stake in 1Sharpe’s single-family rental platform.
The partnership will focus on investing in BTR single-family homes across the U.S., with a specific focus on growth markets that have easy access to amenities, employment centers and strong school districts. Following the acquisitions, the 1Sharpe management platform will be used to make quality of life improvements at the properties.
Chris Niehaus, managing partner & head of the U.S. business for BGO, told Multi-Housing News that the partnership closed on its first acquisition at the end of October 2023. The companies acquired a recently built 64-unit BTR community in the Phoenix metro from a regional developer. Completed in summer 2022, the property offers three- and four-bedroom units, as well as nearby access to restaurants and grocery stores. The partnership will focus mainly on Sun Belt and western U.S. markets.
BGO makes BTR debut
This initial deal marks BGO’s initial entry into the BTR single-family rental sector. BGO has a number of luxury multifamily communities in major U.S. cities, including New York and Los Angeles.
In July 2021, BGO formed a similar strategic partnership with White Oak to acquire core and core-plus properties in secondary markets across the U.S. This partnership’s first closings were two communities in the Tampa, Fla., and Nashville, Tenn., metros.
