Harrison Street, an investment management firm focused on alternative real assets, and Chicago-based Core Spaces, a residential real estate developer, owner and operator, have formed a joint venture. The JV will invest up to $1.5 billion in developing and acquiring single-family build-to-rent communities.
CHICAGO–(BUSINESS WIRE)–Chicago-based Core Spaces, a residential real estate developer, owner, and operator, and Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, announced today a joint venture that will invest up to $1.5 billion for the development and acquisition of single-family build-to-rent (“BTR”) communities in major growth metropolitan areas across the United States.
The newly formed JV will build on Harrison Street’s institutional, demographically driven investment platform, strong operational knowledge and deep relationships as well as Core Spaces’ existing build-to-rent platform, which launched in 2020, and the firm’s development, and asset management experience. The partnership will pursue investments in highly-amenitized, purpose-built communities located in high-growth suburban markets backed by strong demand drivers, such as top-tier school districts. The JV’s BTR pipeline currently represents approximately $2.5 billion in total capital and over 6,500 units in markets such as Austin, Denver, Dallas, Orlando, and Nashville.
“Affordability challenges in the U.S. housing market and changes in lifestyle preferences are driving demand for single family rentals and we believe our progressive design and hospitality-driven approach will differentiate our BTR communities in the single-family rental market,” said Dan Goldberg, President of Core Spaces.
Christopher Merrill, Harrison Street’s Co-founder, Chairman and Chief Executive Officer, stated, “Since our inception over 16 years ago, Harrison Street has sought to identify unique investment solutions based on data and demographic factors, deep relationships with top institutions and partners, and a culture of innovation and execution. The U.S. single family BTR market is a rapidly expanding asset class with strong demographic tailwinds, and we are excited to draw from our U.S. student housing BTR experience alongside Core Spaces, an experienced developer and operator with significant residential real estate expertise, to identify attractive investment opportunities.”
Since its founding in 2010, Core Spaces has developed and acquired residential projects valued in excess of $6.0 billion across the U.S. The growth into the BTR sector will leverage Core Spaces’ national development experience, vertically integrated team, and residential focus. Core Spaces’ BTR senior management team includes Ron Martin, a 25-plus year industry veteran having worked with both public and private homebuilders, and Cliff Payne, a real estate private equity veteran of 15-plus years.
“Core Spaces is a company built upon a foundation of outstanding relationships. Harrison Street has been a great partner of Core Spaces over the years, and we look forward to our continued growth together,” said Marc Lifshin, Founder and CEO of Core Spaces.
Harrison Street’s pioneering approach to investing in BTR and student housing communities globally has been instrumental in establishing the JV with Core Spaces. Since 2007, the firm has developed and acquired more than 27 BTR-style student housing communities, comprised of 19,000 beds for a total cost of approximately $1.3 billion.
To date, Harrison Street and Core Spaces have nine committed BTR developments in various stages of development and have an established track record partnering on student housing transactions at leading U.S. universities, including at the University of Illinois at Urbana – Champaign, University of California – Berkeley, University of South Florida, Georgia Institute of Technology, University of Oklahoma and Auburn University.
About Core Spaces
Core Spaces is a vertically integrated company focused on acquiring, developing, and managing residential properties that create a better life for everyone under our roof. From world-class amenities and progressive design to client service with a hospitality-driven approach, Core Spaces provides living spaces and services that create a better daily life for its residents. Its projects are thoughtfully designed, customized, developed, and managed to create extraordinary lifestyle experiences that are as unique as their respective cities. Since its founding in 2010, Core has consistently delivered award-winning developments in top markets across the country. It currently owns and/or manages 37 properties nationwide – totaling over 16,000 units and beds – and has a pipeline of over 40,000 units and beds in various stages of development and acquisition. For more information, visit www.corespaces.com.