Toronto buyer pays average of $296K+ for rental residences
authors Staff Reports
Dallas-based Invitation Homes has announced the $210 million sale of 708 single-family free-standing rental homes in Middle Tennessee as the company preps to exit the market.
The residences — which typically rent from between $1,400 and $2,000 per month — are located in suburban areas and offer three to four bedrooms. Some are townhouses.
Toronto-based Tricon Capital Group was the buyer. Tricon Capital had approximately $4.5 billion of real estate assets under management prior to the transaction.
The sales price is the equivalent of about $296,600 per residence.
Invitation Homes still owns 87 homes in the greater Nashville area, which the company is currently marketing for future sale.
“This is an opportune time for Invitation Homes to monetize our investment in Nashville, as we optimize our footprint and focus on growing accretively in high-growth locations where we have greater scale and density,” Dallas Tanner, Invitation Homes president and chief executive officer, said in the release. “While our Nashville investment has performed well … the size of our portfolio in Nashville was smaller than in the other markets we serve.”
Roofstock Inc. acted as an adviser to Invitation Homes on the transaction. Invitation Homes did not use brokers in the transaction, and the Post was unable to determine at publication time if Tricon had representation.
Nashville-based Bruce McNeilage, CEO and co-founder of Kinloch Partners and Harpeth Development, said the sale is noteworthy. Specifically, Tricon bought about 50 homes for $12 million from Kinloch earlier this year (one of which is pictured), the company’s first foray into the Middle Tennessee market.
“It certainly represents a major transaction and I think it’s a game-changer in the single-family rental space,” said McNeilage, whose companies offer many Middle Tennessee single-family free-standing homes that rent for less than $2,000 per month. “Tricon wants to significantly grow here and that will further take inventory out of the market. That will make it tougher to buy this type home, which could spur more construction of such product.”
McNeilage said that when Tricon bought Kinloch’s 50 area homes, it also bought the bulk of the company’s portfolio in Atlanta and Raleigh.