Haven Realty and Walton Street buy six Georgia rental communities for $133.7m

Haven Realty Capital and Walton Street Capital have acquired six dedicated rental communities in the greater Atlanta metro area.

Haven Realty Capital and Walton Street Capital have acquired six dedicated rental communities in the greater Atlanta metro area. The seller was ResiBuilt Homes. The purchase price is $133.7 million.

PRESS RELEASE

For Immediate Release

Haven Realty Capital and Walton Street Capital Acquire Six Atlanta SFR Communities for $133.7 Million

El Segundo, CA (October 13, 2020) – Haven Realty Capital in partnership with an affiliate of Walton Street Capital, L.L.C. has closed the first phase of a $133.7 million acquisition of six Dedicated Rental Communities (DRC) in the greater Atlanta, GA metro from builder/developer, ResiBuilt Homes.

The portfolio will include 537 newly constructed single-family rental (SFR) homes spread across six dedicated rental communities in three counties:
• Bella View, located in Snellville
• The Reserve, located in Dallas
• Macland Phase 2, located in Dallas
• Trickum Hills, located in Lawrenceville
• Moss Pointe, located in Canton
• Magnolia Trace, located in Holly Springs

The initial phase of homes was 100% leased upon closing. The remaining homes will be acquired over the coming months following issuance of certificate of occupancy.

The SFR homes across the portfolio average 2,200 square feet and consist of three-, four- and five-bedroom floorplans, large yards and two-car garages. Each home will feature stainless steel appliances, granite countertops, subway-tile backsplash, hardwood style flooring and security systems.

“Late-stage Millennial family formation, decreasing interest in traditional home ownership, Baby-boomers looking for maintenance-free single-family home living and increased telecommuting — trends that pre-dated the onset of COVID-19 — have resulted in a surge of renter demand for single family housing,” said Haven Realty Capital Managing Principal Sudha Reddy.

“We’ve seen renter demand increase for larger living spaces in less dense suburban neighborhoods as families grow in size,” said Reddy, whose firm operates a portfolio of approximately 3,600 SFR and traditional multifamily units throughout the U.S. “The average apartment unit has gotten smaller over the past decade and there has been less emphasis on units with three or more bedrooms. Single family rental homes also provide a flexible option for individuals who want to transition out of homeownership but remain in the suburban environment.”
Unlike the majority of SFR in the United States which are individual homes on scattered (disaggregated) lots, purpose-built DRC’s are entire communities that operate similar to a multifamily building in a single-family home subdivision setting.

“The first 113 homes in the Atlanta portfolio represent Haven’s first closing in what is an approximately $200 million pipeline of purpose-built DRC’s throughout the Southeast. We are expected to close an additional 700 SFR and townhomes within the next 18 months. As we continue to add projects to the pipeline, we anticipate doubling the volume of deals under contract over the next 12 months,” added Haven Realty Principal Chris Turitto, who heads the firm’s acquisition efforts.

The Atlanta portfolio will be managed by ResiHome.

James Brolan, Matthew Putterman, Matthew Schoendfeldt and Stuart Hepler of JLL Capital Markets advised Haven Realty Capital in the transaction.
Whelan Advisory acted as the exclusive advisor to ResiBuilt.

About Haven Realty Capital
Haven Realty Capital (http://www.havenrc.com) is a Los Angeles-based real estate investment and management firm focusing on the acquisition and development of single family and multifamily assets in select markets throughout the United States. Founded in 2010, Haven was an early entrant in the single-family rental industry where it owned and operated approximately 10,000 SFR rental homes in 6 states at its peak. Haven currently has approximately $500 million under management with assets located in California, Nevada, Arizona, Texas, Georgia, Idaho, Illinois, North Carolina, South Carolina, and Washington.

About ResiBuilt
Founded in 2018 through a partnership with ResiBuilt CEO Jay Byce and Resicap, ResiBuilt is a top ten home builder in Atlanta, that specializes in delivering new construction homes for the rental market. These single-family homes in dedicated rental communities are modern homes for modern renters. www.resibuilt.com

About Walton Street Capital, L.L.C.
Walton Street Capital, L.L.C., (https://www.waltonst.com ) is a fully discretionary private equity real estate investment firm based in Chicago. Since its founding in 1994, affiliates of Walton Street have received total equity and loan commitments of over $14.0 billion from public and corporate pension plans, non-U.S. institutions, insurance companies and banks, endowments and foundations, trusts, and high net worth individuals. Through its affiliates, Walton Street has invested and/or committed to invest over $12.0 billion of equity in more than 500 separate transactions in U.S. and international real estate, including the development and acquisition of office, hotel, retail, industrial, multi-family, single family rental, for-sale residential, senior and student housing, gaming and other assets through both individual, portfolio and company-level transactions with a gross asset cost of over $50 billion.