By Ben Lane : housingwire – excerpt
Joint venture will develop SFR properties in West and Southeast
One of the largest operators of single-family rental homes is partnering with one of the nation’s largest banks to build thousands of new rental homes.
J.P. Morgan Asset Management, the asset management arm of JPMorgan Chase and American Homes 4 Rent announced Thursday that they are establishing a joint venture that will seek to build approximately 2,500 single-family rentals in “multiple high-growth markets in the West and Southeast.”…
As for why the companies are partnering together now, amid a recession that’s crippled many homebuilders, the companies say the timing is actually ideal given the recent shifts in behavior and an increase in people’s desire to move away from more densely populated areas..
“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,” said Mike Kelly, Head of Real Estate Americas at J.P. Morgan Asset Management.
“We see this shift as particularly prevalent among the Millennial generation, the largest U.S. age cohort, who are looking to transition away from apartment living,” Kelly continued. “The move towards more spread-out living is also expected to accelerate in the wake of the COVID-19 pandemic, and we anticipate strong occupancy and rental growth rates across properties.”… (more)