Invitation Homes Plans New Joint Venture. What Does This Mean for Investors?

Founded during the Great Recession, Invitation Homes (NYSE: INVH) has slowly expanded its portfolio of single-family rental homes across the United States since 2012. It now owns and operates 80,000 homes across 16 markets and is the largest operator of single-family rental homes in the country.

With some analysts forecasting we could see an uptick in foreclosures and distressed homes next year, is there an opportunity for Invitation Homes to purchase more homes and grow its portfolio? The company seems to think so. It recently announced it has formed a $375 million joint venture with Rockpoint Group to acquire single-family homes and operate them as rentals. Invitation Homes will contribute $75 million, and Rockport will put in $300 million. But that’s just the start. The joint venture eventually plans to deploy over $1 billion to buy and renovate homes in the West and South, where Invitation Homes is already strong.

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Dallas-based Invitation Homes forms new venture to buy up to $1 billion in rental homes

Dallas-based Invitation Homes, the country’s largest rental home owner, is forming a joint venture with a private equity firm to buy up to $1 billion in single-family homes in Dallas, Seattle, South Florida and a dozen other U.S. markets.

Invitation Homes, which owns 80,000 homes, announced the venture with Rockpoint Group LLC on Wednesday. The companies will initially invest $375 million, with Rockpoint putting $300 million into the buying spree.

“We believe both the fundamentals in our sector and the need for high-quality rental housing in the U.S. are as strong as they have been in our company’s history,” said a statement from Invitation Homes CEO Dallas Tanner.

Single-family home rental companies grew out of the 2008 financial crisis, with Wall Street titans like Blackstone Group Inc. investing heavily in buying up distressed properties. Blackstone launched Invitation Homes but cashed out last year, netting billions in profit.

This year, Invitation

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