JLL Income Property Trust Acquires SFR Portfolio for $560M

JLL Income Property Trust recently acquired an approximately 47 percent interest in a stabilized, core and geographically diverse single-family rental portfolio. The existing portfolio of more than 4,000 homes was assembled and is managed in a venture with affiliates of Austin-based Amherst Residential. The investment was acquired for approximately $560 million based on an overall portfolio valuation of $1.2 billion.

“This is a unique and attractive opportunity for us to enter the single-family rental market at scale through a previously acquired, renovated and stabilized portfolio with broad nationwide diversification,” notes Allan Swaringen, president and CEO of JLL Income Property Trust. “LaSalle’s research and strategy team has identified single-family rentals as a ‘near-core’ property sector poised for accelerating institutional capital inflows along with an attractive risk-adjusted return profile. Given the superior long-term tenant demand growth outlook, our research projects long-term expected rent and NOI growth above all other institutional property type averages. Those strong fundamentals are also supported by favorable demographics as a diverse set of cross-generational tenants seek single-family home living, increased demand as people look for more living space amid and post-pandemic, along with a constrained supply of new homes and rising construction costs.” 

The portfolio is diversified across 14 major markets in 10 different states with homes spread across multiple locations within these markets. Nearly 80 percent of the portfolio is located in LaSalle’s research-identified single-family market recommendations which include Atlanta, Dallas, Phoenix, Nashville, Charlotte and Tampa. The portfolio is currently more than 96 percent leased and occupied with no displacement anticipated as a result of the transaction.