CHICAGO — JLL Income Property Trust has acquired a 47 percent interest in a single-family rental portfolio assembled and managed by Amherst Residential for $560 million. The 4,000-home portfolio is valued in total at $1.2 billion.
Properties within the portfolio are located in 14 major markets across 10 states, with nearly 80 percent located in Atlanta; Dallas; Nashville, Tenn.; Charlotte, N.C.; and Tampa, Fla. The portfolio is currently over 96 percent leased and is occupied with no displacement anticipated as a result of the transaction.
“LaSalle’s Research & 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,” says Allan Swaringen, president and CEO of JLL Income Property Trust.
“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,” he continues.
JLL’s investment was funded with $205 million in equity and the assumption of its proportionate share of an existing in-place financing — a $761 million securitized loan. The debt, which features interest-only payments, has a fixed interest rate of 2.1 percent and matures at the end of 2025. At the current valuation, the portfolio’s loan-to-value ratio is approximately 63 percent.
Amherst Residential is a privately held owner and operator of more than 30,000 single-family rental homes in 30 markets and 20 states, aggregating to more than $9.8 billion of assets under management as of March 31. The firm employs 900 people and is based in Austin, Texas.
Chicago-based JLL Income Property Trust is an institutionally managed net asset value REIT, which brings to investors a growing portfolio of commercial real estate investments selected by an institutional investment management team. The company has $3.9 billion of real estate assets in its portfolio as of March 31. The company trades on NASDAQ under the symbols ZIPTAX, ZIPTMX, ZIPIAX and ZIPIMX.
—Katie Sloan