US real estate investor Waterton is broadening its investment strategy by adding single-family rental (SFR) homes through a partnership with Second Avenue.
David Schwartz, Waterton’s CEO and chairman told IPE Real Assets that the initial plan is to make debt and equity investments worth up to $500m (€432m) to enable Waterton to invest in 1,500 to 2,000 homes.
The capital for this strategy will be invested on behalf of one of Waterton’s apartment funds, Schwartz said, without disclosing details of the fund involved.
Waterton – known for investing in US multifamily, senior living and hospitality properties – announced that the new strategy with Second Avenue expects to acquire and develop SFR homes across the US southeastern and southwestern markets.
Second Avenue, a full-service SFR platform, offers proprietary, technology-based solutions to home buyers, sellers, renters, and investors.
“We have spent the majority of the past 25 years building a portfolio of multifamily assets by identifying needs and maximizing efficiencies in the value add space,” Schwartz said during the announcement.
“As demand continues to outstrip supply of rental housing in certain markets, we identified an emerging need for single-family rental housing that suits the preferences of a shifting demographic and a need for responsible stakeholders to fill a void left by absentee landlords.”
Fred Tuomi, a special advisor to Second Avenue, said: “As the SFR sector evolves, technology-based acquisition and management systems are a key piece of the puzzle.
“Second Avenue provides just that – with a single tool to invest, analyse and streamline asset management – while Waterton brings multiple decades of experience as a real estate investment manager and fiduciary.”
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