Azora and Advenir Strike $3B Partnership to Invest in Rental Units

Azora and Advenir are teaming up in a $3 billion collaboration to invest in rental units.

The two management firms will pour the capital into key markets across the states, they announced in a statement. Under the partnership, the duo will create a new corporation called Advenir Azora that will leverage develop, manage, purchase, and fund services across its portfolio.

The new company plans to invest more than $3 billion over the next five years, aiming to add 15,000 single-family rental units to its portfolio. This includes at least 10,000 through development, and 5,000 existing through acquisitions.

It’s unclear which regions Advenir Azora plans to focus on but the two plan to create attainable rental housing amid the housing shortage, which has impacted more than five million homes.

“Investing in and with Advenir is a further expression of Azora’s long-term conviction to help create quality multi-family and single-family rental homes in the US,” said Fernando Perez-Hickman, managing partner and head of Azora America.

“More than just good business, this endeavor will help countless families. Advenir’s operational excellence, local expertise, and similar principles make them an ideal partner as we continue to seek value in investment opportunities across the United States.”

Affordable housing faces many challenges right now. In many cases real estate developers have failed to garner community support for affordable projects, according to a survey conducted by coUrbanize.

Another issue is that many projects built with Low-Income Housing Tax Credits in the 1990s are starting to expire and over the next five years, 350,000 of those could disappear, according to an analysis by The Associated Press.

Advenir since its founding in 1996 has poured nearly $5 billion into multi and single-family rental communities. Currently, the Miami-based firm operates more than 14,700 units across 10 states. Azora, which is headquartered in Spain, invests not only in residential but hospitality, logistics, and renewable energy too, managing $11 billion in total assets.