Transcendent Investment Management, a housing-focused private equity firm, has teamed up with multifamily-focused private equity firm Electra America to form a new joint venture, Transcendent Electra, focused on acquiring high-quality, newly built single-family rental homes in Sun Belt markets. The joint venture has established a fund for the acquisition of homes in suburban neighborhoods in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Texas.
Jordan Kavana will serve as the CEO of Transcendent Electra. The venture plans to acquire and facilitate the development of over 15,000 new single-family homes over the next five years.
“Our mission is to provide quality housing for families across the Southeast,” Kavana says. “The goal of this partnership is to bring unparalleled multifamily management expertise and cost efficiencies to the single-family housing sector.”
Transcendent Electra will target new build homes vacant at acquisition with builder guarantees, priced between $175,000 and $300,000. The average rent for these homes will be $1,500 to $2,300 per month.
“The Sun Belt is home to about 40% of all U.S. households and is expected to see 60% of the growth in households by 2025,” Kavana adds. “Given the housing shortage and rapidly rising home prices, demand for rental housing will remain strong.”
