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JLL really wants to be a single-family megalandlord

November 21, 2022

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JV with Amherst aims to amass $500M portfolio over 2Y

JLL’s appetite for single-family housing is growing, as an entity of the firm struck yet another pact with Amherst Group in the property sector.

JLL Income Property Trust announced the joint venture this week, saying in an SEC filing the program aims to acquire up to $500 million in single-family rental homes in the next two years.

JLL’s REIT will own a 95 percent stake in the venture, leaving the other 5 percent stake to Amherst. The venture expands on a previous deal between JLL and Amherst made a year ago.

JLL Income Property Trust CEO Allan Swaringen in a statement cited the REIT’s conviction of the future of single-family rentals, noting how high mortgage rates are dissauding homeownership and millennials are growing more interested in flexibility due to hybrid work environments.

The joint venture is already a quarter of a way to its goal, recently acquiring 360 renovated single-family homes across 10 states. Those acquisitions are valued at approximately $120 million.

JLL is not the only major player putting a lot on the line in the single-family rental market. JPMorgan Chase this week partnered announced a plan with Haven Realty Capital to acquire and develop $1 billion worth of built-to-rent communities across the country. The partners are set to deploy $415 million in equity for the venture.

Single-family rentals boomed at the start of the pandemic, propped up by sustained demand and a short supply of for-sale homes. Built-to-rent homes became the fastest-growing housing sector in the country and is seeing renewed demand as mortgage rates and home prices sideline buyers.

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