Commercial firms ink build-for-rent and single-family rental joint venture deal

New joint venture will acquire and manage affordable rental homes

Commercial firms ink build-for-rent and single-family rental joint venture deal

SVN | SFR Capital Management, a commercial real estate investment firm, has partnered with Marketplace Homes, a national brokerage and property management company, to form a build-for-rent (BFR) and single-family rental (SFR) joint venture.

The companies have entered an agreement to create Curbside Residential, a joint venture that acquires and operates rental homes. Additionally, the partnership will integrate Marketplace Homes’ property management, asset management, leasing, maintenance, and resident services with SVN | SFR’s acquisition and SFR/BFR operating platform.

The joint venture comes on the back of the companies seeing increased national demand for affordable BFR and single-family rental housing. According to John Burns Real Estate Consulting, national single-family rents are up 6.5% year over year as of July 2022, and new lease rents for the top 20 SFR markets are up 10.1% annually.

“With the residential rental home sector experiencing unprecedented national investor and consumer demand, we believe now is the time to invest in SFR and BFR portfolios,” said Jeff Cline, CEO of SVN | SFR Capital Management. “Marketplace Homes’ depth in marketing, lease-up, maintenance and, importantly, resident care, will deliver unmatched daily operations and instill the sense of community we strive for so rental residents stay happy and enjoy the community they live in longer.”

“The combined deal flow, large national footprint and local operating capabilities between SVN | SFR and Marketplace Homes create a JV that is scaling quickly and efficiently,” said Marketplace Homes president William Dickson. “There’s a lot of competition in SFR and BFR right now, but this is a partnership that will stand out for its unique acquisition pipeline, professional property management and vertical integration.”

In addition to Curbside Residential, SVN | SFR has also formed other joint ventures with several homebuilders and land developers for the new construction of BFR housing over the next several years. According to the firm, development of the first purpose-built residential communities will start in 2023 in Texas and several other states.