Tricon Residential announced it has formed a new joint venture with Pacific Life Insurance Company and a leading global investor to acquire newly built single-family rental homes targeting the middle-market demographic in the U.S. Sun Belt. The Homebuilder Direct JV will serve as a complement to Tricon’s existing single-family rental joint venture, which is focused on the organic acquisition of resale homes.
The Homebuilder Direct JV will have an initial equity commitment of $300 million (one-third coming from each partner) and include the ability for investors to increase the vehicle size to $450 million, representing $1.5 billion of purchasing potential when including associated leverage. This will enable it to acquire approximately 5,000 new single-family homes, primarily from national and regional homebuilders, including both scattered site homes and finished build-to-rent communities, with Tricon serving as the property manager.
“We are excited to begin a new partnership with Pacific Life alongside one of our existing institutional investors to expand our single-family rental platform and offer our residents the option to live in brand-new homes at an accessible price point,” said Gary Berman, President and CEO of Tricon Residential. “We continue to see exceptional demand for high-quality rental homes as a result of de-urbanization, de-densification and work-from-home trends that have only accelerated in the past year. The Homebuilder Direct JV leverages our longstanding relationships with homebuilders across the United States and rounds out our single-family rental acquisition strategy to include new homes, complementing our ongoing acquisition program of resale homes in our SFR JV-1 vehicle, and the development of build-to-rent communities in our THPAS JV-1. With the formation of the Homebuilder Direct JV, we now have a clear runway to grow our single-family rental portfolio well beyond 30,000 homes.”
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