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Developer Crescent Communities and global real estate investment management firm Heitman, along with a state pension fund separate account, have formed a joint venture to invest in Crescent’s HARMON single-family build-to-rent (BTR) platform.

The joint-venture partnership will invest an initial $235 million in BTR projects that are set to begin construction this spring in attractive Sun Belt markets—Arizona, North Carolina, Tennessee, and Texas.

“The expanding relationship with Heitman during a very challenging capital markets environment is a testament to this growing sector and the confidence in our brand,” said Tony Chen, director of single-family BTR at Crescent Communities. “This partnership further cements Crescent Communities as a leader in our field, implementing our vision of how rental communities should be designed, developed, and operated, and successfully—and consistently—delivering high-quality communities.”

Crescent’s HARMON brand focuses on a premier rental experience with the benefits of homeownership, such as privacy and extra living space. The brand features energy- and water-efficient three- and four-bedroom townhomes or detached single-family residences, with amenities and engaging spaces that immerse residents in the neighborhoods.

“We are excited to kick off this venture with Crescent Communities as we believe demand fundamentals for single-family rental housing will continue to grow at an attractive pace,” said Brian Pieracci, head of North America private equity at Heitman. “Over the next decade, we expect a growing number of older millennials and retirees to rent as median home prices have grown at twice the pace of median incomes since 2000, making home purchasing less attainable and far less desirable. We believe that the HARMON product line and the locations that Crescent Communities is targeting are well suited to meet this demand.”

Crescent Communities continues to experience growth, with 17,700 units of multifamily under construction, in operation, or in planning. Its diverse multifamily portfolio, along with its relationships with contractors and home builders in addition to the Sumitomo Forestry home builder entities, will help provide additional expansion opportunities for the HARMON brand, according to the developer.