BTR List
Posts
BTR Weekly - Invitation Homes acquires 580 single-family homes

BTR Weekly - Invitation Homes acquires 580 single-family homes

Invitation Homes buys 580 single-family homes across US. Middleburg Communities kicks off 260 unit BTR project. D.R. Horton sells BTR asset in Indiana. Joint Venture secures $53 million to develop BTR project in Florida. Two new BTR deals.

Matt H & Aid Sopjani
September 25, 2024

Good morning. This is BTR List, and we help you fit in.

→ We are here to serve the owners, brokers, managers, and capital providers that are interested in single family rentals (SFR) and build-to-rent (BTR) multifamily. Do us a favor, and forward this email to your favorite multifamily pro. They can sign up here.

Now, let’s get to it.

NEWS ROUNDUP

ACQUISITION: Invitation Homes acquires 580 single-family homes. In the third quarter of 2024, Invitation Homes spent $216 million to acquire 580 single-family homes ($372,413/unit) in Florida, Denver and the Carolinas from two different homebuilders. The company reported that 80% of these properties are already completed and in various stages of stabilization. Invitation Homes’ CIO, Scott Eisen, remarked that the company is looking to partner with even more national and regional home builders.

DEVELOPMENT: Middleburg Communities breaks ground on 260 unit BTR development in NC. Middleburg Communities, a Virginia-based home-builder, broke ground on The Hamlet at Quail Crossing, a 260 unit BTR community in Wake Forest, North Carolina. T.J. Sedeski, managing director of investments at Middleburg, said that the Raleigh market presents a great opportunity for BTR investments. Whereas Aaron Tishkoff, Middleburg’s assistant vice president of acquisitions, noted ongoing strong demand for BTR investments despite challenging capital markets.

DISPOSITION: D.R. Horton sells Indianapolis BTR. D.R. Horton sold Sandalwood West, a 142 unit BTR asset in Indiana to a real estate fund managed by Up&Up. The deal was brokered by Marcus & Millichap. The seller was represented by Marcus & Millichap’s senior managing director Scott Harris and associate Sam McCarthy. Whereas Josh Caruana, first vice president, is Marcus & Millichap’s broker of record in Indiana. Completed in 2023, Sandalwood West is spread across 50 acres and is made up of three- to five-bedroom floorplans.

FINANCING: Joint venture secures $53 million in financing for Palm Bay BTR. A joint venture between Stellar Communities and Adam America Real Estate has secured a $52.7 million construction loan to build Havens at Palm Bay. JLL’s Max La Cava, Pier Barinci and Shane Ciacci worked with the firms to secure the capital. Havens at Palm Bay, which is expected to be completed in 2026, will feature single-story residences with one, two and three bedrooms, overlooking a natural lagoon.

READ: High housing costs are fueling BTR growth. Jill Schlesinger, business analyst at CBS News, claims that house prices have increased by more than 40% in four years. This increase has priced out many people from owning homes, which is why they are turning to BTR communities as a solution. Brent Long, head of BTR expansion for Christopher Todd Communities in Arizona, says that they’re seeing increasing demand from renters of all ages.