U.S. hedge funds eye Florida, as they buy up distressed single-family homes

Miami /
Apr.April 16, 2013 01:00 PM

Hedge funds are snapping up discounted single-family homes in South Florida to feed a growing appetite for rental properties, the Palm Beach Post reported.

A comment by Berkshire Hathaway Chairman Warren Buffett last year appears to have inspired heavyweight private equity funds like Blackstone Group and the Connecticut-based Starwood Property Group to sink money into the distressed residential real estate market, and, perhaps due to the number of distressed properties available, South Florida has been a favorite spot for such investments, the Post said.

Buffett told CNBC’s Squawk Box that if he could find a way to manage them, he would buy “a couple hundred thousand single-family homes.”

Blackstone Group created housing firm Invitation Homes to invest more than $3 billion in single-family homes nationwide, according to the Post. The private equity giant has purchased about 150 homes in Palm Beach County and another 500 in Broward and Miami-Dade counties, the newspaper said, citing property appraiser records.

“This is a growing market where people, more and more, are becoming renters either by choice or because of economic circumstances,” said Invitation Homes chief operating officer Marcus Ridgway. [Palm Beach Post]-Emily Schmall


Related Articles

arrow_forward_ios
Kimco CEO Conor Flynn and Blackstone CEO Stephen Schwarzman with the Publix-anchored retail centers (Getty, LinkedIn, JLL)
Publix-powered purchase: Kimco partners with Blackstone in $426M retail play
Publix-powered purchase: Kimco partners with Blackstone in $426M retail play
Blackstone chair, CEO and co-founder Stephen Schwarzman and RangeWater Real Estate CEO Steven Shores with the complex (Getty, LinkedIn via Shores, One Boynton)
Blackstone buys Boynton Beach apartment complex for $171M
Blackstone buys Boynton Beach apartment complex for $171M
Landlords keep raising office space rents despite a grim outlook for vacancy rates (Getty)
Miami office vacancy rates reach Great Recession levels
Miami office vacancy rates reach Great Recession levels
Daniel Sundheim and 2850 Tigertail Ave (Getty/Patrick McMullan, Related)
Daniel Sundheim’s D1 Capital Partners inks 10-year Miami office lease
Daniel Sundheim’s D1 Capital Partners inks 10-year Miami office lease
David Martin and Russell Galbut with a rendering of 500 Alton Road
Miami Beach developers nab $345M construction loan for 500 Alton
Miami Beach developers nab $345M construction loan for 500 Alton
Blackstone’s Jon Gray and 2MiamiCentral (Getty, iStock)
Blackstone buys MiamiCentral office buildings for $230M
Blackstone buys MiamiCentral office buildings for $230M
Deepak Khosa and Aaron Kurlansky with 123 Ocean Avenue, Palm Beach Shores (Google Maps, iStock)
Deepak Khosa closes on distressed hotel on Singer Island, plans to convert to multifamily
Deepak Khosa closes on distressed hotel on Singer Island, plans to convert to multifamily
Stephen Schwarzman with the site (Getty, Google Maps)
Blackstone pays $21M for Doral industrial dev site
Blackstone pays $21M for Doral industrial dev site
arrow_forward_ios

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

Loading...