Tricon Residential Forms Rental JV to Target the Sunbelt

Tricon Residential Inc. recently announced the formation of a new joint venture with Pacific Life Insurance Company and a global investor to acquire newly built single-family rental homes targeting the middle-market demographic in the U.S. Sunbelt. This new joint venture will serve as a natural complement to Tricon’s existing single-family rental joint venture, which is focused on the organic acquisition of resale homes.

The Homebuilder Direct JV will have an initial equity commitment of $300 million (one-third from each partner) and include the ability for investors to increase the vehicle size to $450 million, representing $1.5 billion of purchasing potential when including associated leverage. This will enable the joint venture to acquire approximately 5,000 new single-family homes primarily from national and regional homebuilders, including both scattered site homes and finished build-to-rent communities. Tricon will serve as the asset manager and property manager of the joint venture.