SVN partners with Walton Global on build-to-rent venture

Joint effort plans its first communities in Colorado and Texas

National /
Jul.July 08, 2021 06:57 PM
Walton CEO Bill Doherty and SVN | SFR Capital Management CEO Jeff Cline (Walton, SVN | SFR)

Walton CEO Bill Doherty and SVN | SFR Capital Management CEO Jeff Cline (Walton, SVN | SFR)

SVN | SFR Capital Management and Walton Global Holdings USA are charging head first into the single family rental space.

The firms on Thursday announced a joint venture to construct and operate communities of single-family rentals nationwide. The partnership said it will work with a homebuilder to build a large-scale portfolio of such communities and will complete its first ones in Colorado and Texas next year.

Investment is flooding into the single family rental space, with transactions estimated at more than $18 billion between January and June, according to John Burns Consulting. Private equity behemoth Blackstone recently acquired Home Partners of America for $6 billion.

Some firms are targeting existing homes off the multiple listing service, while others focus on building new communities. SVN | SFR, which falls into the latter category, plans to aggregate about 35,000 new build-to-rent homes in the near term with $2 billion in equity and debt from institutional investors.

Walton focuses on pre-development land.It has $3.4 billion in assets under management and an 81,000-acre portfolio.

“Our joint ventures have access to an established pipeline that’s growing,” Walton CEO Bill Doherty said in a statement.

In 2019, Bloomberg News reported that a number of investors claimed that the rural communities that a Walton-affiliated company was supposed to build with their money had not materialized. Most of more than 300 Walton land projects, from Alberta to Washington, were delayed, as were the expected payouts to investors, according to Bloomberg.

Single-family rentals have performed exceptionally well during the pandemic as people searched for more interior space and yards. Rising home prices have also put homeownership out of reach for millions of Americans, making renting the only alternative.





    Related Articles

    arrow_forward_ios
    Skyline Tower in Long Island City and 200 East 83rd Street (Hill West, Rockefeller Group)
    Manhattan logs busiest month for new development sales since April
    Manhattan logs busiest month for new development sales since April
    East Village landlord collected rent from deceased CEO’s account, lawsuit says
    East Village landlord collected rent from deceased CEO’s account, lawsuit says
    East Village landlord collected rent from deceased CEO’s account, lawsuit says
    Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
    Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
    Tech entrepreneur behind record-breaking $22.5M Chelsea townhouse sale
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    Watchdog org: Put home-sale commissions in buyers’ hands
    Watchdog org: Put home-sale commissions in buyers’ hands
    Photo Illustration of Elon Musk (Getty)
    Musk could save $2B in California taxes on Texas move
    Musk could save $2B in California taxes on Texas move
    The year-over-year rise in home prices was just below the 19.8 percent annual rise in August. (iStock)
    Home prices up 20%, but buyers, take heart
    Home prices up 20%, but buyers, take heart
    Landlords were less likely to respond to renters they thought were African American or Latino. (iStock)
    Landlords more likely to ignore applicants of color
    Landlords more likely to ignore applicants of color
    Newest unicorn is property-services startup Lessen
    Newest unicorn is property-services startup Lessen
    Newest unicorn is property-services startup Lessen
    arrow_forward_ios

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

    Loading...