By Mike Sunnucks | Rose Law Group Reporter
Real estate firms Crescent Communities and Pretium are partnering on a new $1 billion venture to build single-family, for-rent homes in 14 U.S. growth markets in Sunbelt states.
The new venture is being launched under the Harmon brand and looks to build 3,000 new rental homes in the U.S.
The first development is in Charleston, S.C. with more planned in other growth markets.
“Single-family build-to-rent allows Crescent Communities to be a part of the solution to the tremendous under-supply of rental housing in the U.S., and this partnership enables us to develop more than 3,000 new rental homes,” said Tony Chen, managing director, single-family build-to-rent at Charlotte-based Crescent. “We look forward to applying best practices from our experience in mixed-use development and are excited to partner with Pretium, which has extensive experience scaling and managing single-family rental portfolios using technology-enabled operating processes.”
Arizona — especially Maricopa and Pinal counties — has been a very attractive market for developers and investors in for-rent single family homes as well as for-rent townhouses.
Crescent and New York-based Pretium both have footprints in the Phoenix. A Pretium subsidiary, Progress Residential, is based in Scottsdale and has developed 66,000 for-rent homes nationwide.
Crescent also has real estate investments and residential developments in Phoenix as well as an office on Camelback Road.
“The venture is a natural extension of our industry leading single-family rental platform and an opportunity to offer our residents a gateway opportunity to owning homes in great neighborhoods,” said Matt Johnston, managing director, head of build-to-rent at Pretium. “With a complementary market leader in Crescent Communities, we believe this makes for a strong partnership and we look forward to working together to provide accessible, high-quality and professionally-managed build-to-rent housing options in some of the most attractive markets in the country.”
The first Charleston community will have 109 townhouses and will be known as Harmon Fox Bank.