Published by Business Insider | November 17, 2022
JPMorgan and Haven Realty Capital entered into a joint venture agreement on November 15 with a plan to acquire up to $1 billion in build-to-rent properties, starting in Atlanta.
A new joint venture between one of America’s largest banks and a growing build-to-rent operator is the latest sign that big investors are undeterred by the volatile real estate market.
Haven Realty Capital and JPMorgan Chase’s asset management arm said they will invest up to $1 billion to develop build-to-rent single-family homes across the country, according to a November 15 announcement.
The duo plans to seed their investment with up to $415 million in equity. The first installment will include a purchase of 250 homes in three communities around the Atlanta metropolitan area, and the deal could close within the next 90 days, the statement said.
The partnership comes at a time when demand for new housing continues to slide, according to data from the Census Bureau. Meanwhile, the National Association of Homebuilders reports that builder confidence is at its lowest level since 2012 because of rising interest rates and construction material costs.
“The for-sale housing market has been significantly hampered by recession fears, inflation and rising interest rates placing a burden on homebuilders and their ability to add to the housing stock,” Haven’s founder Sudha Reddy said in the statement, adding that the partnership will allow the company to work with homebuilders who “are becoming increasingly comfortable selling entire communities to operators” like Haven.