Colony Capital is partnering with Miami Lakes-based Sovereign Real Estate Group to acquire 1,000 homes in South Florida, the South Florida Business Journal reported.
Sovereign Real Estate head Marcos Egipciaco told the Business Journal that this acquisition is part of a plan to buy distressed homes across ten markets in conjunction with the $2 billion Colony American Homes fund. The partnership will rehabilitate the homes, lease them out and hold them for at least five years, Egipciaco said.
“There is an opportunity to buy for below replacement cost,” said Egipciaco. “You can rent it out at a great yield and there is capital appreciation over time.” [SFBJ] —Christopher Cameron