Second Avenue, Sculptor Form Strategic SFR Joint Venture

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Second Avenue, an institutional single-family rental platform, has formed a joint venture and property management agreement with Sculptor Real Estate, an arm of Sculptor Capital Management Inc. JLL Capital Markets worked on behalf of Second Avenue to secure the partnership.

As part of the deal, Second Avenue will use its proprietary investment platform to manage an additional 500 single-family rental homes and Sculptor will commit $100 million capital for the joint venture’s portfolio growth. The partnership will allow Second Avenue to expand its operations into five new markets over the next few years, said the firm’s CEO & Founder Mike Rothman in prepared remarks.

With more than $20.3 billion of real estate investments since 2003, Sculptor’s current SFR portfolio covers eight of the 18 markets where Second Avenue owns properties. Until now, Sculptor has committed $6.5 billion to its opportunistic real estate platform and $1.6 billion across its real estate credit program.

Second Avenue has a total of $1 billion of assets under management across 10 markets, including Florida, Texas, California, Georgia, South Carolina and Pennsylvania.

Sculptor joins four other multi-billion dollar funds that have partnered with the company since 2022, including Monroe Capital, Waterton and BLG Capital Advisors, added Rothman in a prepared statement.