JPMorgan wants to invest $700M building rentals in Sun Belt states

Fund is targeting investors potentially overexposed to major cities like New York and San Francisco

National /
Sep.September 30, 2020 04:30 PM
JPMorgan Chase CEO Jamie Dimon (Getty, iStock)

JPMorgan Chase CEO Jamie Dimon (Getty, iStock)

Wall Street landlords aren’t going anywhere — except maybe down South.

The asset management arm of JPMorgan Chase wants to raise a $700 million fund focused on developing single-family and multifamily rental properties in Sun Belt cities, Bloomberg reported, citing an investor presentation.

The financial giant is in talks with investors who may be overexposed to investments in gateway markets such as New York City and San Francisco. The fund would target developments in Atlanta; Houston and Austin, Texas; and Charlotte and Raleigh, North Carolina.

Rentals are not a new area for JPMorgan’s real estate team; the division has $65 billion in assets under management, with 52,000 rental units.

Single-family rentals in particular emerged as an asset class during the last recession, when Wall Street firms were able to scoop up foreclosed properties. The pandemic has led some of those companies (including JPMorgan Chase, which partnered with American Homes 4 Rent to develop more than 2,000 single-family rentals) to double down on such investments: Record unemployment rates and high household debt means many renters may remain renters, and some homeowners may look to cash in for equity. Plus, the ability to work from home has led some city dwellers to relocate to the suburbs.

Not everyone is sold on that thesis, however. During the second quarter of this year, major hedge funds purchased shares of firms that lease residential real estate in urban markets.
[Bloomberg] — Danielle Balbi


Related Articles

arrow_forward_ios
(iStock/Illustration by Kevin Rebong for The Real Deal)
January home prices up 10% in biggest annual gain in 7 years
January home prices up 10% in biggest annual gain in 7 years
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Mortgage rates surge — and refinance applications sink
Mortgage rates surge — and refinance applications sink
Five small landlords, represented by Randy Mastro, have sued New York attorney general Letitia James (Getty)
Lawsuit challenges New York eviction ban’s constitutionality
Lawsuit challenges New York eviction ban’s constitutionality
Home sales were the busiest January on record, but still the fifth month of decline in a row. (iStock)
Pending home sales fall for fifth consecutive month
Pending home sales fall for fifth consecutive month
CBRE CEO Bob Sulentic. (CBRE, Getty)
CBRE’s 2020 earnings down 8%
CBRE’s 2020 earnings down 8%
January is the second consecutive month of increase in new home sales. (Getty)
Sales of new homes up 4.3% in January
Sales of new homes up 4.3% in January
(iStock/Illustration by Alexis Manrodt for The Real Deal)
US home prices are more than 5% too high: Fitch
US home prices are more than 5% too high: Fitch
The Texas snow storm was partly responsible for the decline in mortgage applications. (Getty)
Texas storm, increasing rates freeze home mortgage market
Texas storm, increasing rates freeze home mortgage market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...