Heitman forms $ 640 million partnership with SFR


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Photo by Jarek Ceborski on Unsplash

Heitman and Sylvan Road Capital are teaming up to build a portfolio of single-family rental properties across the United States. Heitman formed the joint venture on behalf of a subsidiary of the company.

The joint venture seeks to acquire more than 3,000 single-family homes in several US markets in order to create a diversified portfolio with a total gross capitalization of $ 640 million. Heitman and Sylvan Road plan to target value-added assets for the portfolio, seeking stable returns from communities over the long term.

Tom McCarthy, senior managing director of Heitman’s North American Private Real Estate Equity Group, said in prepared remarks that Sylvan Road’s partnership with the company will provide an end-to-end platform that includes acquisition, renovation capabilities. , rental, management and transfer.

A SERIES OF SFR PARTNERSHIPS

For the joint venture, Heitman will draw on his experience in several residential sectors, including traditional multi-family housing, senior housing and student housing. The company has accumulated a portfolio of approximately $ 47 billion in assets under management since its inception in 1966. In this portfolio, Heitman also works with The Spectrum Cos. and Batson-Cook Development Co. to build a community of 325 units in Charlotte, NC

Regarding SFR, Heitman made its first investment in the sector in 2018. McCarthy also said in prepared remarks that the company is early in entering the SFR sector and will continue to seek more opportunities in the space. growing.

Many other companies have also benefited from the momentum of the single family home industry. In December, MORE Residential and Stockbridge Capital Group formed a partnership to acquire SFRs in high growth markets in the United States. JLL has also joined the trend by acquiring a significant portion of a SFR portfolio with more than 4,000 homes owned and managed by Amherst Residential.

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