Two multifamily firms, Advenir and Oakley Group, are partnering to develop, acquire, and operate a portfolio of single-family build-to-rent properties.
Advenir Oakley Capital, a joint venture formed by the firms in October 2020, has a goal of accumulating a portfolio of 8,000 build-to-rent units by 2025 in Southeast and Midwest markets that demonstrate outsized demand stemming from strong job growth and in-migration as well as low taxation and local desirability.
Both companies bring their multifamily strengths to the table. Miami-based Advenir, founded in 1996, is a vertically integrated investor, developer, and operator of multifamily assets with a portfolio of 43 properties with more than 14,000 units. Birmingham, Alabama-based Oakley Group has developed and owned more than 3,600 units since it was founded in 2007 and has 20 properties with 2,232 units in its portfolio.
The joint venture’s goal is to provide single-family homes for individuals and households across generations without the expense of ownership.
“Millennials have experienced stagnant real wage growth and sat on the sidelines as real home price appreciation has continued. As this generation ages, a desire for a home and private spaces becomes more and more important to them, but the lack of affordability of acquiring a home prevents home ownership,” stated the joint venture. “On the other end of the spectrum, empty nesters and baby boomers have built up significant equity in their homes. Many would like to either downsize, take advantage of a strong for-sale market, find a more efficient turnkey product, but would prefer not to move to a traditional apartment community.”
In the fourth quarter of 2021, Advenir Oakley Capital made its first acquisitions, purchasing the 208-unit LEO at The Sanctuary in Rincon, Georgia; the 207-unit LEO at Augusta Commons in North Augusta, South Carolina; and the 197-unit LEO at West Fork in Conroe, Texas. In addition, it has a pipeline of approximately 3,700 units in various stages of predevelopment and development across 10 properties.
