Tricon Residential has entered into a joint venture arrangement with three institutional investors to acquire single-family rental homes targeting the middle-market demographic in the US Sun Belt.
The joint venture, referred to as SFR JV-2, will have an initial equity commitment of $1.40 billion. Investors will have the ability to increase the vehicle size to $1.55 billion, including Tricon's co-investment of $450 million. That represents approximately $5 billion of purchasing power with leverage.
Over three years, SFR JV-2 is expected to acquire more than 18,000 single-family rental homes primarily from resale channels. The JV will complement Tricon's other investment vehicles, which target new single-family rental homes. Tricon will be the asset manager and property manager of the joint venture, the largest JV in its history.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
