Taylor Morrison JV Forms $3B BTR Partnership
The homebuilder is earmarking the funds for its Yardly-branded projects.
Taylor Morrison and Kennedy Lewis Investment Management have entered into a $3 billion land and construction facility agreement to expand Yardly, the developer’s build-to-rent brand.
This partnership will aid Taylor Morrison’s land acquisition and construction endeavors, as well as provide capital flexibility. The developer has already built 36 such communities across Arizona, Florida, North Carolina and Texas.
Last year, Taylor Morrison sold one such asset, formerly known as Yardly Dechman. Welltower bought the 142-unit BTR community in Grand Prairie, Texas, and renamed it to Cadia Grand Prairie, according to Yardi Matrix data.
Yardly-branded homes feature 10-foot ceilings, smart-home technology, as well as private backyards. Certain communities also include green spaces, including on-site dog parks.
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Taylor Morrison and Kennedy Lewis’ partnership extends beyond BTR communities. The duo collaborated on for-sale ventures, such as Taylor Morrison’s The Coves at Lake Wylie, a development site with 500 residential lots in Charlotte, N.C.
Institutional interest in BTR ramps up
The BTR partnership between the two is just the latest rental home venture signaling a growing trend whereby institutional investors and homebuilders join forces to strengthen their presence in the sector.
Earlier this year, institutional investors advised by J.P. Morgan Asset Management and Georgia Capital, together with its homebuilding company Paran Homes, created Laseter Development Group, a firm focused on BTR construction throughout the Southeast.
Private capital isn’t eyeing just new developments. Blackstone and Artemis Real Estate Partners recapitalized NexMetro Communities’ 849-unit BTR collection in a deal valued at $300 million. The communities are in Phoenix and metro Denver.
BTR rent growth steady as supply surges
The average advertised asking rent for the U.S. SFR-BTR sector surpassed the $2,200 milestone for the first time in June, up 0.7 percent year-over-year, according to a recent Yardi Matrix report.
Rents continued their ascent despite a surge in supply. During the first five months of 2025, some 13,700 rental homes came online, representing 14.5 percent of all deliveries, including multifamily, a Yardi Matrix research bulletin shows. This was a significant increase from the 6.4 percent share recorded last year during the same period.
