Harrison Street and Chicago-based Core Spaces, a residential real estate developer, have formed a joint venture to invest up to $1.5 billion for the development and acquisition of single-family build-to-rent (BTR) communities in major growth metropolitan areas across the United States.
The partnership will pursue investments in highly-amenitized, purpose-built communities located in high-growth suburban markets backed by strong demand drivers, such as top-tier school districts.
The JV’s BTR pipeline currently represents approximately $2.5 billion in total capital and over 6,500 units in markets such as Austin, Denver, Dallas, Orlando, and Nashville.
“Affordability challenges in the U.S. housing market and changes in lifestyle preferences are driving demand for single family rentals and we believe our progressive design and hospitality-driven approach will differentiate our BTR communities in the single-family rental market,” said Dan Goldberg, President of Core Spaces.
Christopher Merrill, Harrison Street’s Co-founder, Chairman and Chief Executive Officer, stated, “Since our inception over 16 years ago, Harrison Street has sought to identify unique investment solutions based on data and demographic factors, deep relationships with top institutions and partners, and a culture of innovation and execution. The U.S. single-family build-to-rent market is a rapidly expanding asset class with strong demographic tailwinds, and we are excited to draw from our U.S. student housing BTR experience alongside Core Spaces, an experienced developer and operator with significant residential real estate expertise, to identify attractive investment opportunities.”
“Core Spaces is a company built upon a foundation of outstanding relationships. Harrison Street has been a great partner of Core Spaces over the years, and we look forward to our continued growth together,” said Marc Lifshin, Founder and CEO of Core Spaces.
To date, Harrison Street and Core Spaces have nine committed BTR developments in various stages of development and have an established track record partnering on student housing transactions at leading U.S. universities, including at the University of Illinois at Urbana – Champaign, University of California – Berkeley, University of South Florida, Georgia Institute of Technology, University of Oklahoma and Auburn University.