REAL ESTATE NEWS

Just a year after the first joint venture, Heitman and Crescent Communities will tap the Sunbelt single-family build-to-rent market again. The two real estate investment firms will spend $240 million through an initial commitment in roughly six communities. Additionally, the number could go up to as much as $340 million.

That comes after Heitman and Crescent launched their first joint venture in 2024, which expanded to $345 million after first pledging $235 million. The first partnership invested in several states, including North Carolina, Florida, Tennessee, Arizona, Georgia and Texas. They were all in HARMON communities, which serve as Crescent's single-family build-to-rent brand. The first openings of the communities are nearing, according to the two partners.

The second JV plans on targeting those same states and Colorado. The communities will possess single-family or townhomes, amenity spaces, as well as energy and water efficiency.

"Our decision to launch a second joint venture with Crescent Communities is driven by their proven track record in identifying and executing high-caliber development opportunities," Ashish Karamchandani, managing director and co-head of acquisitions at Heitman, said in a statement.

"As demographic and affordability trends continue to fuel rental demand, we see Crescent and the HARMON portfolio as well-equipped to lead this sector."

Crescent in total has poured $7.2 billion into the multifamily and commercial spaces. The Charlotte-based firm manages 15,300 multifamily units.

The expanded partnership from Crescent and Heitman follows a big wave of appetite for developers to construct BTR product in the Sunbelt. In fact, over 57 percent of the 64,200 total underway came from the region, according to a RealPage report in June. Phoenix led all cities in the report, with 11,500 BTR units under construction, representing nearly 18 percent of the total in the country.

Source: GlobeSt/ALM