VineBrook Homes Trust Inc., a private real estate investment trust advised by a NexPoint affiliate and managed by VineBrook Homes LLC, has purchased a portfolio of 951 single-family rental homes across nine states for an undisclosed price. While NexPoint declined to provide the name of the offering, citing Reg D solicitation rules, independent research conducted by The DI Wire uncovered this information.
With the acquisition, VineBrook’s portfolio now totals approximately 6,500 single-family rental homes. Initially focused on multifamily assets, NexPoint has moved into the single-family rental market through its partnership with VineBrook, which began in 2018. Single-family rental assets across the NexPoint platform now total $1.7 billion.
In addition to single-family rentals, NexPoint’s real estate includes hospitality, industrial, and office/retail, among other sub-sectors, with gross real estate acquisitions now totaling more than $8.9 billion.
“We are continuously looking for ways to channel NexPoint’s real estate capabilities into investment solutions that provide access to areas where we see strong growth potential,” said Dustin Norris, NexPoint’s head of distribution and chief product strategist. “The single-family rental space is a prime example of this approach. It is a market that is still relatively early in its development and bolstered by strong fundamentals.”
According to NexPoint, the opportunity in the single-family rental market is driven by a confluence of trends. Macroeconomic conditions and shifting demographics across the U.S. are among the factors contributing to the growing demand for single-family rental homes—an affordable alternative to homeownership.
The company noted that this demand is particularly strong in secondary and tertiary markets in the U.S., like a number of cities in the Midwest and other locations with favorable employment conditions where the cost of living remains reasonable compared to major metropolitan areas.
There are also trends at the industry level that NexPoint believes support the investment opportunity. In NexPoint’s view, one of the most appealing industry dynamics is the potential for consolidation across the single-family rental space.
Despite the demand for single-family rental homes, it is still an emergent asset class, evident in the fragmented landscape of owners and operators. The nascent development of the market presents opportunities for institutionalization that NexPoint believes could “create value via scale and sophistication.
NexPoint is a multibillion-dollar alternative investment platform comprised of investment advisers NexPoint Advisors, L.P. and NexPoint Real Estate Advisors, L.P., and a suite of related investment vehicles. Investment offerings include publicly traded REITs, Regulation D private placements, Delaware statutory trusts, and 1031 exchanges, closed-end funds, interval funds, and a business development company.