RESICAP, Rockpoint Group Expand SFR JV, Add $2B For BTR
With a current pipeline slated to add over 9,000 new homes, RESICAP will become one of the region's largest homebuilders.
With the belief that single-family rental housing is an attractive core real estate holding for institutional investors, RESICAP is expanding its SFR strategy in a deal with real estate private equity firm Rockpoint Group.
In October 2020, RESICAP, a provider of single-family rental services, formed a joint venture with Rockpoint targeting the acquisition of $1 billion of single-family homes, which it has acquired or is under contract on over 2,000 properties to date.
Now, Rockpoint and RESICAP have committed to a series of follow-on joint ventures, collectively targeting an additional $2.5 billion of SFR acquisitions.
The ventures expect to continue acquiring, renovating, and leasing homes in undersupplied housing markets, including Atlanta, Birmingham, Huntsville, Charlotte, Jacksonville, Tampa, Orlando, Miami, Indianapolis, Dallas, Houston and Oklahoma City.
RESICAP co-CEO Andy Capps noted in prepared remarks that the venture’s focus is now shifting to building partnerships with local vendors.
$2B Aimed at BTR
Additionally, Rockpoint and Resibuilt Homes, a subsidiary of RESICAP, are expanding their initial $1 billion venture, which first launched in December 2020, with a follow-on $2 billion venture focusing on the build-to-rent strategy.
The BTR venture is currently developing over 2,000 homes in the Southeast, with a pipeline of future projects in Atlanta, Charlotte, Raleigh, Greenville, Nashville, Orlando, Tampa, and Jacksonville.
Resibuilt will perform both the subdivision development and new home construction for the venture, and with a current pipeline slated to add over 9,000 new homes, will become one of the region’s largest homebuilders.
“Announcements like these continue to illustrate the investor demand in the SFR sector from high quality sponsors and capital providers,” Sudha Reddy, managing principal of Haven Realty Capital, tells GlobeSt.com. “We would expect to see existing investors continue to add to their SFR allocations as they experience actual results from homes that are built and delivered to the market.”