Haven Realty Capital and Walton Street Capital acquire six Atlanta SFR communities for USD133.7m
Haven Realty Capital in partnership with an affiliate of Walton Street Capital, has closed the first phase of a USD133.7 million acquisition of six Dedicated Rental Communities (DRC) in the greater Atlanta, GA metro area from builder/developer, ResiBuilt Homes.
The portfolio will include 537 newly constructed single-family rental (SFR) homes spread across six DRCs in three counties.
The initial phase of homes was 100 per cent leased upon closing. The remaining homes will be acquired over the coming months following issuance of certificate of occupancy.
The SFR homes across the portfolio average 2,200 square feet and consist of three-, four- and five-bedroom floorplans, large yards and two-car garages. Each home will feature stainless steel appliances, granite countertops, subway-tile backsplash, hardwood style flooring and security systems.
“Late-stage Millennial family formation, decreasing interest in traditional home ownership, Baby-boomers looking for maintenance-free single-family home living and increased telecommuting – trends that pre-dated the onset of Covid-19 – have resulted in a surge of renter demand for single family housing,” says Haven Realty Capital Managing Principal Sudha Reddy. “We’ve seen renter demand increase for larger living spaces in less dense suburban neighbourhoods as families grow in size,” says Reddy, whose firm operates a portfolio of approximately 3,600 SFR and traditional multifamily units throughout the US. “The average apartment unit has gotten smaller over the past decade and there has been less emphasis on units with three or more bedrooms. Single family rental homes also provide a flexible option for individuals who want to transition out of homeownership but remain in the suburban environment.”
Unlike the majority of SFR in the United States which are individual homes on scattered (disaggregated) lots, purpose-built DRC’s are entire communities that operate similar to a multifamily building in a single-family home subdivision setting.
“The first 113 homes in the Atlanta portfolio represent Haven’s first closing in what is an approximately USD200 million pipeline of purpose-built DRC’s throughout the Southeast. We are expected to close an additional 700 SFR and townhomes within the next 18 months. As we continue to add projects to the pipeline, we anticipate doubling the volume of deals under contract over the next 12 months,” adds Haven Realty Principal Chris Turitto, who heads the firm’s acquisition efforts.
The Atlanta portfolio will be managed by ResiHome.
James Brolan, Matthew Putterman, Matthew Schoendfeldt and Stuart Hepler of JLL Capital Markets advised Haven Realty Capital in the transaction.
Whelan Advisory acted as the exclusive advisor to ResiBuilt.