SVN | SFR Capital Management, RP Homes JV to Bring BFR to Southeast
The JV’s first BFR community is The Guild located in Chattanooga, Tenn.; more planned over next 18 months.
More build-for-rent single-family homes are coming to Tennessee, South Carolina, North Carolina and Georgia.
SVN | SFR Capital Management, a private commercial real estate investment firm dedicated to the single-family BFR housing sector, and RP Homes, a Southeast regional builder, have entered into a joint venture to acquire, lease and stabilize homes across the Southeast.
The Guild, a 92-townhome BFR community currently under construction with occupied units in Chattanooga, Tenn., is the JV portfolio’s inaugural asset.
The partners plan to amass 250 to 1,000 homes annually, targeting Tennessee, South Carolina, North Carolina and Georgia.
“We’re excited to move forward and get more communities on the radar with our partnership with RP Homes, and other experienced builders throughout the country, that know local neighborhood markets where there’s community demand for rental housing,” Jeff Cline, CEO of SVN | SFR Capital Management, said in prepared remarks.
“RP Homes understands local residents and is on-point building what prospective renters desire in both attached townhomes and conventional detached single-family homes.”
SVN | SFR Capital Management carved out a piece of the BRF market for itself this summer with the launch of a firm dedicated to this niche,
It also formed a joint venture with Walton Global Holdings USA to build and operate single-family residential rental home communities nationwide.
RP Homes Deal is First Direct Homebuilder Relationship
But the partnership with RP Homes is SVN | SFR’s first direct US homebuilder JV relationship, a growing trend in the BFR space. The joint venture plans an additional 500+ homes targeted to begin construction within 10 to 18 months in the Tennessee market.
“Teaming up with SVN | SFR gives us the ability to scale our production faster at less cost and, importantly, deliver new, amenity-rich housing options to eager rental families,” Gabe Thomas, president of RP Homes, said in prepared comments.
“Interest in our first rental community, The Guild, has been exceptional. There are several additional rental housing developments in the works that will contribute to fulfilling the affordable housing demand in targeted high growth markets we’ve identified.”