Invitation Homes Forms $375 Million Venture with Rockpoint Group to Buy Single-Family Rental Homes
Posted on 10/08/2020
Invitation Homes Inc. entered into an agreement with Rockpoint Group, L.L.C. to form a joint venture partnership that will acquire single-family homes to operate as rental residences.
The JV will be capitalized with a total equity commitment of US$ 375 million, of which US$ 75 million (20%) will be committed by Invitation Homes and US$ 300 million (80%) will be committed by Rockpoint. A total of over US$ 1 billion (including debt) is expected to be deployed by the JV to acquire and renovate single-family homes in attractive locations in markets within the Western US, Southeast US, Florida, and Texas, where Invitation Homes already owns homes. The homes are expected to be of similarly high quality and similar characteristics to the homes in Invitation Homes’ existing portfolio.
Invitation Homes will provide investment, asset management, and property management services to the JV, for which it will earn asset management and property management fees and have the opportunity to earn a promoted interest subject to certain performance thresholds. Invitation Homes also maintains the ability in all markets to continue deploying capital from its own balance sheet to acquire homes for the Invitation Homes portfolio, concurrent with the JV’s deployment of capital, in accordance with pre-specified targets.
Advisors
BofA Securities acted as financial advisor, and Latham & Watkins LLP acted as legal advisor to Invitation Homes. Gibson, Dunn, & Crutcher LLP acted as legal advisor to Rockpoint.
