Chicago, Jan. 5, 2021 – Heitman LLC (“Heitman”), a global real estate investment management firm, has announced the formation of a joint venture with Sylvan Road Capital to acquire and aggregate a portfolio of single-family rental assets diversified across US markets. Heitman formed the joint venture on behalf of an affiliate of the firm.
The venture will seek to aggregate a portfolio of approximately 3,000 single-family homes with a gross capitalization of $640 million. The venture will target value-add assets in order to achieve stable returns over the long-term as demand for more affordable housing continues to grow.
Heitman has deep investment experience in the living sectors, which include multifamily and rented-residential, senior housing, and student housing platforms. Heitman made its first investment in the single-family rental sector in 2018.
“We are pleased to announce our joint venture with Sylvan Road and partner to aggregate a portfolio of single-family rental assets. Sylvan Road’s end-to-end platform, ranging from acquisition and renovation to lease-up, management, and disposition, provides us with a sophisticated partner with an institutional management team,” said Tom McCarthy, Heitman Senior Managing Director of North American Private Real Estate Equity Group. “Heitman was early to enter the single-family rental sector and it has continued its evolution as a growing area for institutional real estate investment. We will continue to look for opportunities to access SFR as supply and demand fundamentals remain attractive.