Haven Realty Capital and JP Morgan Form $415 Million Joint Venture
By: Haven Realty Capital
The $415 million equity joint venture will provide long-term capital for Haven to continue to execute its business plan in the BTR space, working with homebuilders.
"The for-sale housing market has been significantly hampered by recession fears, inflation and rising interest rates placing a burden on homebuilders and their ability to add to the housing stock," said Haven Founder and Managing Principal Sudha Reddy. "This partnership will allow us to continue working with U.S. homebuilders, who are becoming increasingly comfortable selling entire communities to operators like Haven to lease to residents who want to live in a home but can't afford to buy or prefer to rent."
One of the nation's leading BTR owner / operators, Haven currently controls 35 communities across nine states in various phases of construction and stabilization representing approximately 3,500 homes and $1.2 billion in project value.
"The joint venture will add to Haven's existing portfolio that has been aggregated over the last two years" continued Mr. Reddy. "We expect to be an active buyer / developer as the market evolves and opportunities become available over the coming months."
Haven Managing Director and Head of Capital Markets Eric Kim added, "the fundamentals of the single-family rental industry remain solid and J.P. Morgan believes as we do in the strength and viability of the asset class along with our ability to execute. We look forward to working with our partner for many years to come."
Haven intends to leverage its existing relationships and create new ones with best-in-class national and regional homebuilders throughout the Sunbelt states. The joint venture will target communities with 50 to 200 homes ranging from 1,500 to 2,500 square feet, primarily with three- and four-bedroom and two- and three-bathroom floorplans including two-car garages.
The joint venture comes at a time when new for-sale housing starts have fallen to a two-year low, according to data released from the Department of Housing and Urban Development.
"We're pleased to able to partner with Haven to continue to provide the attractive, newly-built, larger single-family homes for rent that more and more American families seek," said Ryan Holgan, executive director, Real Estate Americas, at J.P. Morgan Asset Management.
Initial seed investments for the joint venture will include three communities located in Atlanta MSA representing nearly 250 homes, with expected closings in the next 90 days.
About Haven Realty Capital
Haven Realty Capital (http://www.havenrc.com) is a privately held real estate investment and operating company focused on the acquisition, development and management of single-family communities throughout the United States. Founded in 2010, Haven currently has approximately $1.2 billion (as of October 31, 2022) in BTR communities under development and management with assets located in Alabama, Arizona, Florida, Georgia, Illinois, Nevada, Tennessee and The Carolinas. For more information, visit www.havenrc.com.
About J.P. Morgan Global Alternatives and J.P. Morgan Asset Management – Real Estate Americas
J.P. Morgan Asset Management – Real Estate Americas is the U.S. real estate investment platform of J.P. Morgan Global Alternatives. With more than US$73 billion (Gross Asset Value as of June 30, 2022) in assets under management and 180 professionals, the platform offers real estate strategies that span from core to opportunistic and across debt and equity. J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than 50 years as an alternatives investment manager, US$208 billion in assets under management and more than 800 professionals (as of June 30, 2022), J.P. Morgan offers strategies across the alternative investment spectrum including real estate, private equity, private credit, hedge funds, infrastructure, transportation, timber and liquid alternatives. Operating from offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client's specific objectives. For more information, visit jpmorgan.com/
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