JLL Income Property Trust, a daily net asset value real estate investment trust, has purchased an approximately 47 percent interest in a $1.2 billion single-family rental portfolio of more than 4,000 homes. The portfolio was assembled and is managed in a venture with affiliates of Austin, Texas-based Amherst Residential and an institutional investor.
JLL’s portion was purchased for approximately $560 million based on the overall portfolio valuation of $1.2 billion.
“This is a unique and attractive opportunity for us to enter the single-family rental market at scale through a previously acquired, renovated and stabilized portfolio with broad nationwide diversification…,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “We are focused on investing in sectors that benefit from strong, secular tailwinds and we believe that single-family rentals are an excellent complement to our existing broadly diversified apartment portfolio.”
With this transaction, the REIT has grown its residential allocation to more than 40 percent of the portfolio.
The portfolio is diversified across 14 major markets in 10 states, with nearly 80 percent located in Atlanta, Dallas, Phoenix, Nashville, Charlotte, and Tampa. The portfolio is currently more than 96 percent leased and occupied with no displacement anticipated as a result of the transaction, the company said.
JLL Income Property Trust’s investment was funded with approximately $205 million of equity and an assumption of its proportionate share of in-place financing – a $761 million securitized loan, interest only at a fixed rate of 2.1 percent maturing at the end of 2025. At the current valuation the portfolio loan-to-value ratio is approximately 63 percent.
Amherst Residential is an owner and operator of more than 30,000 single-family rental homes in 30 markets and 20 states totaling more than $9.8 billion of assets under management.
JLL Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) owns and manages a $4.5 billion portfolio of multifamily, industrial, office and grocery-anchored retail properties located in the United States. The REIT has raised more than $2.2 billion in investor equity as of June 2021.