JLL CEO Christian Ulbrich and JLL Income Property Trust CEO C. Allan Swaringen (JLL, iStock)
The hot market for single-family rentals is drawing interest from a new player: JLL.
JLL Income Property Trust, sponsored by JLL, is acquiring a 47 percent stake in a $1.2 billion portfolio assembled and managed by Amherst Residential, according to Bloomberg News. JLL’s investment in the portfolio comes out to roughly $560 million.
The Amherst portfolio is made up of over 4,000 rental homes across the country in markets including Atlanta, Phoenix and Dallas. The homes JLL is investing in are more than 96 percent leased.
Included in the transaction is $205 million of equity. The buyer will also assume part of the debt on the properties. It’s JLL’s first foray into single-family rentals. The REIT arm of JLL typically invests in apartment complexes, office buildings, industrial buildings and retail property anchored by grocery stores.
The single-family rental market is booming, drawing investments from major firms. Rents are rising as surging prices on homes for sale have put them out of reach for many families.
Two months ago, investment giant Blackstone agreed to acquire Home Partners of America — owner of more than 17,000 homes — for $6 billion. A joint venture from Tricon Residential recently made plans to invest $5 billion into single-family rentals.
[Bloomberg] — Holden Walter-Warner
