JP Morgan Asset Management and American Homes 4 Rent’s newly-created single-family homes investment joint venture has agreed its first project.
The project is for 34 homes in the Sovana and Spring Valley areas of Las Vegas, Nevada. The first home deliveries are expected next month and completion is anticipated by October of this year.
IPE Real Assets reported earlier this year that, JP Morgan’s Strategic Property Fund had formed the joint venture with American Homes. The manager’s flagship open-ended core US real estate vehicle is believed to have initially invested $250m (€231.1m).
Last week, American Homes said in its first-quarter results ended 31 March that, after the end of the quarter, JP Morgan had increased its investment $625m.
The venture expects to develop approximately 2,500 rental homes across multiple high-growth markets in the west and the southeast US.
Mike Kelly, head of real estate Americas for JP Morgan, said: “This partnership provides us with the opportunity to capitalise on an increasing trend amongst city dwellers to seek additional space and the appeal of high-quality suburban living in a newly constructed community.
“We see this shift as particularly prevalent among the millennial generation, the largest US age cohort, who are looking to transition away from apartment living.”
The move towards more spread-out living is also expected to accelerate in the wake of the COVID-19 pandemic, Kelly said, adding that ”we anticipate strong occupancy and rental growth rates across properties”.
Christopher Lau, American Homes CFO, said: ” We are proud to be partnering with JP Morgan and value the institutional endorsement of our industry-leading built-for-rental development program.”
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