- JPMorgan Chase, one of the largest banks, and American Homes 4 Rent, one of the largest operators of SFR homes, are partnering to build 1000’s of new rental homes
- Plan to build some 25,000 single-family rental homes in West and Southeast
- Goal is to “deploy” $625M of equity to build new SFR properties
Spokespeople for JPMorgan Asset Management, the asset management arm of JPMorgan Chase, and American Homes 4 Rent believe the time is right for the two companies to join efforts to build new SFR properties despite the fact that many homebuilders are being crippled by the pandemic economy.
Download Your FREE Ultimate Agent Survival Guide Now. This is the exact ‘do this now’ info you need. Learn NOW How to Access All The Bailout Program Cash You Deserve. Including Unemployment and Mortgage Forbearance Plans. To Access the Ultimate Agent Survival Guide Now Text The Word SURVIVAL to 31996.
Mike Kelly, Head of Real Estate Americas at JPMorgan Asset Management, said, “This partnership provides us with the opportunity to capitalize on an increasing trend amongst city dwellers to seek additional space and the appeal of high-quality suburban living in a newly constructed community. We see this shift as particularly prevalent among the Millennial generation…who are looking to transition away from apartment living…more spread-out living (that is) expected to accelerate in the wake of the COVID-19 pandemic…”
Such a partnership is, in some ways, a natural evolution from companies such as Invitation Homes buying up foreclosed homes and turning them into SFR properties as they did during the housing crisis to now American Homes 4 Rent and JP Morgan Asset Management building their own SFR properties from the get-go. JPMorgan Asset Management essentially provides the capital to build and American Homes provides the homes and technology to tour, rent and manage the properties online.
Christopher Lau, CFO with American Homes 4 Rent, said, “We are proud to be partnering with JP Morgan Asset Management and value the institutional endorsement of our industry-leading built-for-rental development program…we believe (this program) has the potential to revolutionize the single-family rental industry (as it is) the right strategy, at the right time, with the right partner.”
With ground breaking in late April, this new partnership is expecting to deliver 34 single-family rental homes in the Sovana and Spring Valley areas of Las Vegas (12 3-bedroom homes and 22 4-bedroom homes) in June with completion anticipated by October 2020.
Thanks to HousingWire.