Tricon Capital Group Inc. has acquired a 550-unit portfolio of homes in Charlotte, N.C., for $26 million US. The portfolio was assembled over several decades by a private individual and has an occupancy rate of approximately 95 per cent. Based on current rents in place and historical operating expenses, the purchase price equates to a cap rate of more than 12.5 per cent.

“As part of the expansion plan for our U.S. single-family rental platform, we had identified Charlotte as a city with strong underlying population and employment growth fundamentals that serves as a regional hub for the southeastern United States,” says David Berman, Tricon’s chairman and CEO. “This portfolio acquisition came along at an opportune time and has allowed us to quickly become a local market leader. Over time we intend to drive additional value from this acquisition by increasing rents to market levels and renovating homes that turn over with the long-term goal of maximizing rents and minimizing on-going maintenance costs.”

In addition to its Charlotte expansion, Tricon has closed on a new partnership in Los Angeles, Calif., with Turnstone, LCC, a company that has been active in the single-family rental and for-sale sectors since 1997. The partnership will begin acquiring in early 2013

“We are excited about expanding into Los Angeles with Turnstone, an industry veteran with a stellar track record,” says Berman. “As a whole, I am extremely pleased with the U.S. single-family rental platform that we built over the course of 2012, and fully expect we will experience continued success in 2013 and beyond.”