Real Estate Asset Management
First Preston HT, a real estate asset management firm with national reach, shares insights on a mega trend in real estate investment.
“It’s turning into a $10 billion industry” Colin Wiel, Managing Director and Co-Founder of Waypoint Homes. “Tom Shapiro, Chairman of GTIS Partners, estimates a $1 Trillion market for single-family rentals. His New York-based real estate investment firm expects to invest $1 billion in the area by 2016.” Bloomberg.com
Tom Barrack, Chairman, CEO and Founder of Colony Capital announced plans to acquire $1.5 billion of rental property by “April of next year.” In a Bloomberg TV interview Barrack highlighted the emergence of a new asset class –single-family Real Estate Investment Trusts (REITs) which purchase pools of distressed real estate for rehab and rental. “The challenge is the need for a national brand which has the ability to manage [properties] in diverse geographic regions” stated Barrack.
Whether building a real estate asset management organization from the ground up or enlisting the services of national asset management firms, such as First Preston HT, investors from around the globe are staking their claims in the US residential real estate marketplace.
Bloomberg also reported recently that the “biggest buyer of U.S. commercial real estate since prices bottomed is about to become the biggest investor seeking to enter the single-family leasing market.”
New York-based Blackstone Group, LP (BX) is reportedly raising $13 billion “for what will be the largest-ever private equity real estate fund.” The firm has reportedly spent more than $250 million this year acquiring foreclosed single family houses with the intention of renting them out.”
Buy, Rent and Hold
Blackstone has reportedly teamed up with the Treehouse Group LLC of Tempe, Arizona, and a Dallas-based group to purchase, rehab, locate tenants and maintain rentals.
Follow the link to see which firms are actively pursuing a buy, rent and hold strategy. Find out what’s impressive about smaller portfolios which contain 20 houses as opposed to thousands.
Question: How will the buy, rent and hold trend impact the housing recovery?
Source: Bloomberg