GTIS Partners Sells Single-Family Rental Portfolio for $300M

Totaling more than 1,000 homes, the properties are located in Atlanta and Nashville.
Atlanta property. Image courtesy of GTIS Partners

GTIS Partners has completed its single-family rental strategy after the sale of a portfolio that included 1,081 homes. The firm’s SFR portfolio that included properties in Atlanta and Nashville, Tenn., was sold to an undisclosed buyer for $300 million.

Josh Pristaw, senior managing director & head of capital markets at GTIS, told Multi-Housing News that the portfolio was more than 97 percent occupied and generally included communities were larger than the typical multifamily layout of three bedrooms and two bathrooms.

According to GTIS, the sale of this SFR portfolio was the final disposition of the communities the firm acquired during the wake of the U.S. housing bubble crash more than a decade ago. GTIS began building its SFR portfolio in 2012 due to the lower home values following the financial crisis. Since then, GTIS was able to build up a portfolio where it owned and/or managed more than 4,700 SFR homes across nine markets, which were gradually sold as the market recovered.

In the last three and a half years, the firm sold 2,630 communities to institutional buyers for approximately $400 million, with another 376 homes that were sold or are in the process of being sold through retail channels. With the last portfolio from its SFR strategy sold, GTIS has moved away from its SFR acquisitions and towards self-developing build-to-rent communities.

FROM SINGLE FAMILY RENTALS TO BUILD-TO-RENTS

Tom Shapiro, president & CIO of GTIS, said in prepared remarks that the sale was the firm’s exit from the first phase of its SFR platform and shift towards creating build-to-rent products in a high-demand market. For GTIS, the build-to-rent strategy creates a more attractive product for its renters through community amenities and on-site staff.

Rob Vahradian, senior managing director at GTIS, said in prepared remarks that the firm is currently working on seven build-to-rent projects that total 1,370 units and $340 million in project costs. GTIS’ initial build-to-rent projects are located in Phoenix and South and Central Florida and are in various stages of development, Vahradian added in his prepared statement. The development pipeline includes a 197-unit community in Mesa, Ariz., that GTIS broke ground on in December as well as projects outside the Phoenix and Florida markets.