HAVEN REALTY CAPITAL AND J.P. MORGAN FORM $415 MILLION JOINT VENTURE
By Leah Draffen
November 15, 2022
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To acquire and develop more than $1 billion in new build-to-rent properties nationwide, the two companies have created a programmatic joint venture.
Haven Realty Capital and institutional investors advised by J.P. Morgan Global Alternatives have formed a $415 million equity joint venture to acquire and develop over $1 billion in new build-to-rent (BTR) communities throughout the country. The venture will provide Haven long-term capital while working with home builders to further its business plan in the BTR sector.
“The for-sale housing market has been significantly hampered by recession fears, inflation, and rising interest rates placing a burden on home builders and their ability to add to the housing stock,” says Haven founder and managing principal Sudha Reddy. “This partnership will allow us to continue working with U.S. home builders, 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.”
“The joint venture will add to Haven’s existing portfolio that has been aggregated over the last two years,” continues Reddy. “We expect to be an active buyer and developer as the market evolves and opportunities become available over the coming months.”
Currently, in varying degrees of construction and stabilization, Haven controls 35 communities across nine states equaling approximately 3,500 homes and $1.2 billion in project value. Initial seed investments for the joint venture include three communities located in Atlanta’s metro area representing nearly 250 homes, with expected closings in the next 90 days.
“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,” says Eric Kim, Haven managing director and head of capital markets.
While planning to leverage its existing relationships, Haven will also create new ones with best-in-class home builders throughout the Sun Belt states. The joint venture will target 50- to 200-home communities with primarily three- to four-bedroom and two- to three-bathroom floor plans ranging from 1,500 to 2,500 square feet with two-car garages.
”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,” says Ryan Holgan, executive director, Real Estate Americas, at J.P. Morgan Asset Management.
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