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BTR Daily - February 28, 2025 - NexMetro completes $333 million recapitalization

BTR Daily - February 28, 2025 - NexMetro completes $333 million recapitalization

NexMetro completes $333 million recapitalization. Slatt arranges $11.2 million loan. TIC acquires Blue River. Blackstone shuts down Home Partners. Housing starts favor multifamily and BTR. Two new BTR deals.

Matt H & Aid Sopjani
February 28, 2025

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NEWS ROUNDUP

FINANCING: NexMetro completes $333 million recapitalization. NexMetro has successfully completed a $333 million recapitalization of an eight-property BTR portfolio spanning Arizona, Colorado, and Texas. The transaction, arranged by JLL, saw Stockbridge invest $65.9 million in preferred equity, alongside $206 million in existing assumable agency financing. The portfolio includes 1,061 mostly detached, single-level BTR homes. This marks the second closing within six weeks for NexMetro’s 12-asset portfolio, which is valued at $620 million. Josh Hartmann, CEO of NexMetro, acknowledged the challenges of executing such a complex transaction across multiple assets, particularly amid fluctuating market conditions. JLL’s Debt Advisory team, which represented NexMetro in the transaction, was led by Kevin MacKenzie, Michael Joseph, Brad Miner, Matthew Putterman, Chris Shea, Caroline Novak, and Weston Nearon.

FINANCING: Slatt arranges $11.2 million bridge loan. Slatt Capital has arranged an $11.2 million bridge loan for Villas at Bella Vista, a newly constructed 43-unit BTR townhome project in San Antonio, TX. The financing, secured through Arixa Capital, will be used to retire the existing construction loan and support the project as it progresses toward stabilization. Lauren George, Director of Originations at Arixa Capital, emphasized the firm's growing presence in Texas, stating, “Expanding into Texas is a natural next step for Arixa Capital, where we set new loan origination records in 2024 as part of our nearly $1.4 billion record year.” Slatt Capital’s Makenzie W. Campbell highlighted the firm’s strong relationship with Arixa Capital, having completed four transactions together in the past year.

M&A: TIC acquires Blue River Communities. Trilogy Investment (TIC) has announced the strategic acquisition and integration of Blue River Communities (BRC) into its new homebuilding division, Rêve Homes. The move, executed in partnership with Seed Capital Investments of Duluth, GA, strengthens TIC’s vertical integration and expands its footprint in single-family residential construction. Rêve Homes will focus on both the BTR and for-sale housing markets, with seven communities under development. Jason Joseph, CEO and Partner of TIC, emphasized the strategic benefits of the integration, stating, “The vertical integration creates an amazing opportunity to control the quality of our homes while reducing redundant costs across each development.” Leading Rêve Homes is Greg Duriez, formerly of Blue River Communities, who will serve as CEO, President, and Partner.

M&A: Blackstone shuts down Home Partners. Blackstone is shutting down Home Partners of America, the single-family rental subsidiary it acquired for $6 billion in 2021, as part of a major restructuring effort. The company will close its Chicago headquarters and lay off 179 employees, shifting management of its rental portfolio to Tricon Residential, another Blackstone-backed entity acquired for $3.5 billion in early 2024.

READ: Housing starts favor multifamily and BTR owners.

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