J.P. Morgan, Haven Realty Form $415M Partnership
The joint venture plans to develop and acquire over $1 billion in build-to-rent communities throughout the U.S.
Haven Realty Capital has formed a $415 million equity joint venture with institutional investors advised by J.P. Morgan Global Alternatives to access long-term capital and expand the firm’s build-to-rent portfolio. The partnership plans to develop and buy more than $1 billion in communities throughout the country.
The partnership’s first investments include three single-family rental communities totaling 250 homes in metro Atlanta. The companies will focus on properties comprising 50 to 200 homes, preferably with three- and four-bedroom floorplans ranging from 1,500 to 2,500 square feet, and two-car garages.
Inflation, rising interest rates and recession fears are tempering the for-sale market, affecting homebuilders’ ability to add to the existing stock, said Sudha Reddy, founder & managing principal of Haven, in prepared statements. The joint venture will work with national and regional homebuilders, which sell communities to operators that lease them to residents who prefer to rent homes, instead of buying them, she added.
Haven remains positive on the solid fundamentals of the SFR market, while J.P. Morgan believes in the viability of this asset class and the firm’s ability to execute, mentioned Eric Kim, managing director and head of capital markets at Haven, in a prepared statement.
Currently, Haven’s portfolio includes 35 BTR properties across nine states, totaling 3,500 homes in various phases of construction. The firm recently entered the Las Vegas market with a $22.8 million purchase.