Partners Group, a global private equity company, has acquired a portfolio of single-family rental homes in the U.S. with a combined gross asset value of $1 billion, from affiliates of Fortress Investment Group and Kairos Living.
The portfolio consists of 2,528 recently constructed single-family rental homes and a pipeline of over 1,000 homes under construction spread across 17 states in the Sun Belt region, with the majority located in Alabama, Georgia, Oklahoma, and Texas.
“A rising number of companies are locating or relocating to the Sun Belt from more expensive and high-cost, high-tax metro areas,” says Scott Egarian, member of management, Private Real Estate Americas, Partners Group. “As a result, the target demographic for the portfolio, which typically includes young families with stable incomes that are looking for more space, is growing. Our vision is to capitalize on the fragmented nature of the single-family rental market to build a platform across the region whilst ensuring superior tenant experiences.”
Partners Group will work with Kairos Living to execute on the pipeline of homes under construction. Kairos Living will handle the management of the portfolio, including identifying prospective residents. As part of its value creation plan, Partners Group will also provide growth capital to acquire additional homes and invest in the Kairos Living operating platform as the venture scales.
“Millennials are raising families at a time when the high costs of living and a chronic undersupply of housing are making purchasing a home difficult for many,” adds Ron Lamontagne, managing director, Head Private Real Estate Americas, Partners Group. “The provision of affordable rental properties for families that are not ready to buy their first home has therefore never been more important. We were attracted by this investment as it sits within one of our high-conviction themes, residential-for-rent, and helps ease housing supply constraints.”
Partners Group’s Private Real Estate business has $18 billion in assets under management and has acquired 280 real estate developments and properties globally to date.
