Invitation Homes Inc. has entered into an agreement with Rockpoint Group, L.L.C. to form a joint venture(JV) partnership to acquire single-family rental homes.
Invitation Homes said the JV will be capitalized with a total equity commitment of $375 million, of which $75 million (20%) will be committed by Invitation Homes and $300 million (80%) will be committed by Rockpoint. A total of over $1 billion (including debt) is expected to be deployed by the JV to acquire and renovate single-family homes in attractive locations in markets within the Western US, Southeast US, Florida, and Texas, where Invitation Homes already owns homes.
“In Rockpoint, we have found a high-integrity partner who shares our commitment to providing an unparalleled living experience that puts residents first. We believe both the fundamentals in our sector and the need for high-quality rental housing in the US are as strong as they have been in our company’s history, and we are thrilled to be expanding the channels through which we can invest for the benefit of our local communities and our shareholders,” said Dallas Tanner, president and chief executive officer of Invitation Homes.
“We view this investment as an opportunity to supplement our long-standing focus on for-rent housing across the United States through a partnership with a proven industry leader in the single-family rental sector,” said Rockpoint co-founder, Keith Gelb. “We are thrilled to be investing alongside Invitation Homes and to be part of the housing solution in America by expanding quality of choice for those seeking homes for lease in areas with attractive supply and demand fundamentals.”
Invitation Homes will provide investment, asset management, and property management services to the JV, for which it will earn asset management and property management fees and have the opportunity to earn a promoted interest subject to certain performance thresholds.