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VineBrook Homes expands to Southeast, buys $354M single-family portfolio

Investor scoops up 3,000 homes across eight states

VineBrook Homes expands to Southeast, buys $354M single-family portfolio
NexPoint founder and principal James Dondero (LinkedIn)

A possible IPO isn’t the only plan on NexPoint’s agenda.

VineBrook Homes Trust, a massive single-family landlord managed by the company, just bought a single-family portfolio from the Prager Group and Ardent Companies for $354.2 million, public documents show.

While the property owner is known for its Midwestern presence, the deal is concentrated in the Southeast. The bulk of the 3,000 homes in the portfolio are spread across seven states: Georgia, Tennessee, Missouri, Florida, North Carolina, South Carolina and Mississippi. The rest are in New Mexico.

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As of last month, the portfolio was 85 percent occupied with an average effective monthly rent of $1,043, public documents show. Dallas-based NexPoint and the two Atlanta-based sellers, the Prager Group and Ardent Companies, did not immediately respond to requests for comment.

Prior to the deal, VineBrook operated more than 13,500 single-family rentals across 16 states. Most of those properties were in Midwestern cities such as Cincinnati, Columbus and Dayton. NexPoint has been in talks to pursue an IPO by this year’s end.

It’s the latest move by a company that’s banking on single-family homes as Americans opt for short-term living arrangements as opposed to buying in today’s hot (though cooling) housing market.

VineBrook Homes takes after the likes of Blackstone’s Invitation Homes, which went public in 2017 with a portfolio of almost 48,000 homes. The number of homes it owns has since doubled.

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Commercial Real EstateHousing MarketRental Market