Pretium Closes SFR Fund at $1.5B
The investment vehicle targets suburban markets.
New York-based Pretium has closed its sixth single-family rental housing fund, raising $1.5 billion and exceeding its target. Pretium filed the Securities and Exchange Commission form for the investment vehicle in May 2022.
The fund garnered strong support from a diverse mix of investors—both new and existing—including insurance companies, U.S. pension plans and U.S. wealth managers. Just last month, Virginia Retirement System disclosed it committed $575 million to its real assets portfolio, including a $150 million investment in Pretium’s Single Family Rental Fund VI.
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The investment vehicle targets communities and homes in suburban markets that experience above-average population and economic growth. Additionally, Pretium will target clusters of 50 to 150 homes in existing communities, PERE News reported.
The firm raised more than $11.5 billion since 2018, according to the same source. Part of this capital is from Residential Credit Fund II, which Pretium closed at $1.7 billion in 2022. Since the turn of the decade, the firm has invested upward of $2.6 billion in build-to-rent projects, creating more than 7,800 units across 37 cities and 15 states.
Pretium’s $1B commitment with Crescent Communities
Roughly 35 percent of the fund’s capital is slated for build-to-rent investments in the Southwest and Southeast, the same source reveals. In 2021, Pretium teamed up with Crescent Communities as part of a $1 billion commitment to develop new single-family rental projects throughout the Sun Belt.
In early 2022, the two companies broke ground on a 78-unit build-to-rent community in Nakomis, Fla., followed by another two communities totaling 136 units in Charlotte, N.C., toward the end of the year.
