Tricon JV Pays $210M for Single-Family Rentals

The partnership between the Canadian firm and two large institutional investors snapped up the 708-home portfolio in Nashville, Tenn.

Home in Nashville. Image courtesy of Tricon Capital Group

Canada’s Tricon Capital Group has acquired a portfolio of 708 single-family rental homes in Nashville, Tenn., for $210 million from Invitation Homes, the country’s largest owner of the niche asset class. By picking up the portfolio through a joint venture with two major institutional investors, Tricon has boosted its platform of homes under management in Music City nearly six-fold.

Details of the properties were not disclosed, but Multi-Housing News understands that they are located both in the city and the suburbs. The acquisition was made by Tricon’s single-family rental joint venture, TAH-JV1, which was established last year. The venture’s unidentified partners were described as one of the world’s largest sovereign wealth funds and one of the biggest state pension plans in the U.S.

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The latest deal was funded by a combination of joint venture equity and debt under the JV’s existing credit facility. Capitalized with $750 million in total equity, the JV aims to acquire roughly 10,000 to 12,000 single-family homes with an expected valuation of about $2 billion including leverage, according to an announcement in June 2018. The portfolio of homes is being assembled and managed by Tricon’s single-family rental arm Tricon American Homes.

Ramping up in the South

Homes in Tricon’s newly acquired Nashville portfolio. Image courtesy of Tricon Capital Group

The TAH-JV1 portfolio grew by 918 homes during the third quarter of 2019, Tricon announced in November. The recent Nashville acquisition expands Tricon’s footprint in the city to about 850 homes, representing around 4 percent of the company’s overall managed portfolio of homes. Following the deal, TAH-JV1 has deployed more than half of its committed capital, Tricon said in a statement.

The company reached a milestone during the current quarter by snapping up its 20,000th single-family rental home. Tricon focuses primarily on rental housing in North America, with some $7.9 billion (C$10.5 billion) of assets under management.

Invitation Homes, which Blackstone took public on the New York Stock Exchange in 2017, has amassed a portfolio of roughly 80,000 homes for lease in 16 markets across the U.S.

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