J.P. Morgan and Haven Realty Capital Launch $415M JV

EL SEGUNDO, CA – Privately-held real estate investment and operating company Haven Realty Capital and institutional investors advised by J.P. Morgan Global Alternatives have formed a $415 million equity joint-venture to acquire and develop more than $1 billion in new build-to-rent communities across the US.

The programmatic joint-venture will provide Haven with long-term capital to continue to execute its business plan in the BTR space.

The joint-venture will target communities with 50 to 200 homes, ranging from 1,500 square feet to 2,500 square feet. The partnership will primarily target communities with two-, three- and four-bedroom floorplans and two-car garages.

“The for-sale housing market has been significantly hampered by recession fears, inflation and rising interest rates placing a burden on homebuilders and their ability to add to the housing stock,” states Haven founder and managing principal, Sudha Reddy. “This partnership will allow us to continue working with US homebuilders, who are becoming increasingly comfortable selling entire communities to operators like Haven to lease to residents who want to live in a home but can’t afford to buy or prefer to rent.”

“The fundamentals of the single-family rental industry remain solid and J.P. Morgan believes as we do in the strength and viability of the asset class along with our ability to execute,” says Eric Kim, Haven’s managing director and head of capital markets. “We look forward to working with our partner for many years to come.”

The joint-venture comes at a time when new for-sale housing starts have fallen to a two-year low, according to the Department of Housing and Urban Development’s data.

Reddy adds, “The joint-venture will add to Haven’s existing portfolio that has been aggregated over the last two years. We expect to be an active buyer/developer as the market evolves and opportunities become available over the coming months.”

Haven currently has 35 communities in various phases of construction and stabilization, totaling 3,500 homes across nine states and $1.2 billion in project value.

Initial seed investments for the partnership will include three communities, totaling nearly 250 homes in the Atlanta metropolitan area, which are expected to close in the next 90 days.

“We’re pleased to able to partner with Haven to continue to provide the attractive, newly-built, larger single-family homes for rent that more and more American families seek,” says Ryan Holgan, executive director of real estate for the Americas at J.P. Morgan Asset Management.