Vinebrook Homes Trust Inc., a private real estate investment trust managed by an affiliate of NexPoint Real Estate Advisors, has agreed to purchase a portfolio of approximately 3,000 single-family rental homes for $354.2 million, according to a filing with the Securities and Exchange Commission.
According to the purchase and sale agreements, the sellers appear to be affiliates of a joint venture between two Atlanta-based real estate firms, The Ardent Companies and The Prager Group.
The 3,000 homes are located across eight states, including Georgia, Tennessee, Missouri, Florida, North Carolina, South Carolina, Mississippi, and New Mexico, with the largest concentration in the Southeast. As of September 30, 2021, the portfolio was 84.8 percent occupied with an average monthly rent of $1,043.
In addition to the property acquisition, Prager Property Management agreed to sell Vinebrook the assets used in the management of the portfolio for approximately $7.5 million.
The closing of the acquisitions is expected to occur in December 2021 or January 2022 – with a target of December 31, 2021. Vinebrook intends to fund the purchase with cash on hand, debt financing, and assuming certain of the sellers’ debt.
Vinebrook Homes Trust launched its Regulation D private placement offering in November 2018 and has raised more than $370 million, including proceeding from the distribution reinvestment plan. The REIT’s portfolio consists of 14,697 single-family rental properties valued at nearly $1.8 billion, as of the second quarter of 2021. Vinebrook recently became a 12(g) filer and files quarterly and annual financial reports with the SEC, along with other reports as required by federal securities laws.