Pretium Partners raises $1 billion to acquire BTR homes: Bloomberg

Key Takeaways:

– Pretium Partners has raised nearly $1 billion for a new fund dedicated to acquiring built-to-rent (BTR) homes.
– The company has invested a total of more than $2.5 billion in purpose-built rental homes, resulting in 7,500 new BTR homes in 37 cities and 11 states.
– The ongoing demand for single-family rental units, driven by elevated mortgage rates and limited housing inventory, is fueling the BTR market.
– Investors have found alternative ways to buy homes, including purchasing directly from builders.
– Pretium previously acquired thousands of homes in a $1.5 billion deal with D.R. Horton in June 2023.

HousingWire:

Real estate investment management firm Pretium Partners has raised nearly $1 billion for a new fund dedicated to acquiring built-to-rent (BTR) homes, Bloomberg reported on Tuesday.

The company led by former Goldman Sachs partner Don Mullen also said in a statement that it has now invested a total of more than $2.5 billion in purpose-built rental homes. The investment has resulted in 7,500 new built-to-rent homes acquired across 37 cities and 11 states.

“Decades of under-building and under-investment have led to today’s shortage of viable housing in the United States. That deficit can only be fixed with new capital invested to create new housing supply,” Josh Pristaw, Pretium’s head of real estate, said in a statement. “We are proud to be in a position to create necessary new housing throughout the United States and eager to continue investing in new homes to expand housing choice and supply over the next decade.”

Elevated mortgage rates and limited housing inventory fuel the ongoing demand for single-family rental units, keeping construction starts afloat in the BTR market.

Since borrowing costs surged in 2022, investors have developed other ways to buy homes, including directly from builders. In January, Blackstone announced plans to buy Tricon Residential, which owns more than 37,000 U.S. rental homes.

In June 2023, Pretium also acquired thousands of homes in a $1.5 billion deal with D.R. Horton, one of the nation’s largest builders.

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Property Chomp’s Take:

is a commonly used HTML element that helps structure and organize web content. It is a fundamental component of web development and plays a crucial role in creating visually appealing and functional websites.

In recent news, real estate investment management firm Pretium Partners has raised nearly $1 billion for a new fund dedicated to acquiring built-to-rent (BTR) homes. This significant investment highlights the growing demand for single-family rental units in the market. Pretium Partners, led by former Goldman Sachs partner Don Mullen, has already invested over $2.5 billion in purpose-built rental homes, resulting in the acquisition of 7,500 new homes across multiple cities and states.

The current state of the housing market in the United States has led to a shortage of viable housing options. This deficit can only be addressed by investing in new housing supply. Josh Pristaw, Pretium’s head of real estate, emphasizes the need for new capital to create new housing throughout the country. The company is proud to contribute to expanding housing choice and supply in the next decade.

One of the driving factors behind the demand for single-family rental units is the combination of elevated mortgage rates and limited housing inventory. As a result, more individuals are turning to renting rather than buying homes. This trend has kept construction starts afloat in the BTR market, providing opportunities for investors to capitalize on the growing demand.

In response to the surge in borrowing costs, investors have found alternative ways to acquire homes, such as purchasing directly from builders. For example, in January, Blackstone announced its plans to acquire Tricon Residential, which owns a substantial portfolio of rental homes in the United States. This diversification of investment strategies allows investors to adapt to changing market conditions and continue to meet the demand for rental properties.

Pretium Partners has also demonstrated its commitment to expanding its rental home portfolio through strategic acquisitions. In June 2023, the company acquired thousands of homes in a $1.5 billion deal with D.R. Horton, a prominent builder in the nation. These acquisitions further strengthen Pretium’s presence in the rental market and contribute to their mission of increasing housing supply.

In conclusion, the

element may seem like a small component in web development, but it plays a vital role in structuring and organizing web content. The recent news surrounding Pretium Partners’ significant investment in built-to-rent homes highlights the growing demand for rental properties in the market. As the housing market continues to evolve, investors are finding innovative ways to meet the demand and contribute to expanding housing supply.

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