SVN | SFR, Linesight Form BTR Joint Venture

2 min read

The partners aim to build a $1.5 billion portfolio over the next five years.

Photo by R ARCHITECTURE on Unsplash

SVN | SFR Capital Management and Linesight Development LLC are planning to build approximately 1,000 build-to-rent homes a year with its new partnership. The joint venture between the two companies is looking to develop, lease and manage a portfolio of BTR communities across the U.S.

Linesight brings its development experience that includes architectural, engineering and construction expertise, while SVN | SFR will be in charge of leasing, managing and operating the communities on behalf of the joint venture.

With a goal of at least 1,000 homes per year, the joint venture is looking to build up a portfolio with a valuation of more than $1.5 billion in the first five years. The joint venture already has its first mixed-use project located in the Dallas market to kickstart the partnership, which will include 150 to 200 units in single-family detached or attached townhome properties. Beyond its Dallas project, the joint venture is looking to generate a significant BTR pipeline in multiple states.

David Rey, managing partner at Linesight, said in prepared remarks that the joint venture’s first project in Dallas will be ideal for young families or mid-tier professionals who prefer renting or have been priced out of buying a home.

BETTING ON A BOOMING BTR SECTOR

SVN | SFR and Linesight’s joint venture is the latest in a string of companies who have teamed up to take advantage of the booming BTR sector. Several factors led to the sector’s recent growth, including the higher demand for rentals from people who are looking for flexibility, as pointed out by Mark Peterson, director of the BTR division at SVN | SFR, during an April webinar.

While SVN | SFR and Linesight are looking across the U.S., other joint ventures are more specific with target markets. The BTR partnership between Advenir and Oakley Group is focusing on developing and acquiring single-family rental and BTR properties in the Southeast and the Midwest. Even narrower in scope, AHV Communities and McWhinney are working together to develop nearly 500 BTR homes in Colorado.

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