Magnolia Capital, Principal Real Estate Form SFR Partnership

2 min read

The joint venture will purchase at least 1,000 homes per year.

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Magnolia Capital and Principal Real Estate Investors are looking to acquire at least 1,000 homes a year in a newly-formed joint venture focusing on single-family rentals. The partnership is planning to acquire, renovate, and operate single-family rentals throughout the U.S.

Magnolia Capital’s single-family brand vertical, National Home Rentals, will be tasked with looking for opportunities on behalf of the joint venture. The portfolio is expected to be diversified across target markets that have strong supply and demand trends, according to Magnolia Capital.

Max Peek, founder, CEO & managing principal of Magnolia Capital, said in prepared remarks that the company would bring its data-driven, customer first approach to the single-family sector. Since its founding in 2017, National Home Rentals has acquired more than 1,200 homes throughout seven states. For the joint venture, the firm will use its proprietary platform that streamlines the acquisitions process and provides all-in-one property management software that will give residents a better experience. The joint venture didn’t disclose any upcoming transactions, but Principal Real Estate Investors has been active as a lender in California and in Florida.

SERIES OF SFR PARTNERSHIPS

Magnolia Capital and Principal Real Estate Investors are the latest companies to partner up to build up a SFR portfolio. The sector has seen companies and capital pouring in following the growing demand for rentals seen in the last few months, with momentum expected to continue.

Last month, Man Global Private Markets and Bouwinvest Real Estate Investors partnered to build up to 1,000 single-family rental homes, which would be net zero-energy, across the U.S. with the first development being in Charlotte, N.C. The same month, Advenir and Oakley Group also formed a partnership to develop and acquire single-family rental and build-for-rent communities in the Southeast and Midwest regions of the U.S., aiming to create a portfolio of 8,000 units by 2025.

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