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JLL REIT Expands Partnership with Amherst to Acquire $500 Million of Single-Family Rentals

JLL Income Property Trust, a daily net asset value real estate investment trust, expanded its existing relationship with Amherst, one of the nation’s largest investors and operators of single-family rental homes, to acquire up to $500 million in single-family rental homes.

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JLL Income Property Trust, a daily net asset value real estate investment trust, expanded its existing relationship with Amherst, one of the nation’s largest investors and operators of single-family rental homes, to acquire up to $500 million in single-family rental homes in a phased venture over the next two years.

JLL Income Property Trust will have a 95% ownership in the venture and Amherst will have a 5% stake. JLL Income Property Trust previously acquired a 47% interest in a 4,000-home portfolio in which Amherst is also a partner and the operator.

The initial closing of this expanded program includes approximately 360 recently acquired and fully renovated single-family rental homes diversified across 10 states and 16 geographically distinct markets, valued at approximately $120 million.

“Single-family rental homes are one of our highest conviction property sectors given numerous tailwinds that should provide resilient demand and the potential for attractive rent growth within this carefully selected portfolio,” said Allan Swaringen, president & chief executive officer of JLL Income Property Trust. “Home mortgage rates are at 20-year highs, making homeownership less affordable while at the same time remote or hybrid work is becoming a staple in the workplace. Post-pandemic, a growing age cohort of Millennials are seeking more spacious living arrangements than they can find in cities or in the traditional suburban apartment communities and single-family home rentals provide an attractive alternative living situation. There remains a deep shortage in new home construction compared to demand due to elevated construction costs, higher interest rates and lingering supply chain disruptions. Providing high-quality, affordable single-family homes for rent in areas with good schools and safe neighborhoods, where families might not otherwise be able to buy, is a strong value proposition for tenants, these communities, and our investors.”

The company says the transaction is initially being completed unlevered, with a target of deploying capital in tranches up to a total of $500 million across multiple geographies.

JLL Income Property Trust’s residential allocation now totals approximately $3 billion and encompasses nearly 10,600 units. Over 80% of the portfolio is invested in the residential, industrial and healthcare sectors.

“We are excited to be expanding our successful partnership with JLL Income Property Trust,” said Chris Avallone, head of Capital Management at Amherst. “With increasing barriers to homeownership and U.S. housing supply at historic lows, we are as committed as ever to revitalizing America’s aging housing stock and providing growing families the choice of a high-quality home in communities of opportunity. This strategic partnership further enables us to deepen this commitment to the residents and investors we serve.”

JLL Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) oversees a $7.2 billion portfolio of residential, industrial, office and grocery-anchored retail properties.

Since the beginning of 2012, the REIT raised a total of approximately $4.6 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan.  As of Sept. 30, 2022, JLL Income Property Trust owned interests in a total of 136 properties and more than 4,000 single-family rental houses located in 26 states. As of Nov. 14, 2022, the total company NAV across all share classes was approximately $3.6 billion.

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