Walton Global, a real estate investment firm and sponsor of private placement offerings, has formed a joint venture with real estate private equity firm, Rockpoint, to develop single-family rental communities across the United States.
Rockpoint plans to invest up to $300 million in equity in Walton’s “build-to-rent line” of business that is expected to total up to $1 billion in real estate assets.
Rockpoint has experience in the single-family rental market including both build-to-rent communities and the acquisition of existing homes.
Walton’s build-to-rent platform launched in 2021 with the goal of offering new housing in high demand home and rental markets. The Rockpoint joint venture is initially focusing on targets within Walton’s existing master plans and more than 81,000-acre land portfolio across the U.S.
Walton has an initial pipeline of approximately 3,500 units in metro areas such as Atlanta, Austin and Jacksonville that are targeted to be part of the joint venture. To execute the strategy, the joint venture is partnering with national and regional home builders to develop the communities.
In other recent news, last week, Walton closed a $100 million facility provided by affiliates of funds managed by Fortress Investment Group LLC. The funds will be allocated to Walton’s “builder land financing business line” to purchase residential properties in high growth areas.
Walton’s first acquisition using the Fortress facility closed in May 2022. The $9.5 million project, La Playa, is a development located in Hayward, California in the San Francisco Bay Area, with plans to develop 47 new homes.
Walton expects to deploy the remaining capital in the coming months, with approximately seven targeted acquisitions in markets such as Phoenix and Seattle. The amount of the facility may also increase to $150 million, which will be determined as additional properties are identified.
In February, Walton launched two private placement funds, the U.S. Residential Growth Fund and the U.S. BILT Fund, to fund the purchase of land near growing metropolitan cities in Texas, California and Colorado, among others.
Walton Global is a privately-owned land asset management and real estate investment company with $3.6 billion in assets under management.