GTIS Partners Sells Single-Family Rental Portfolio
Over the last three and a half years, the company has sold 2,630 additional homes to institutional buyers.
GTIS Partners has sold a 1,081 single-family rental portfolio to an undisclosed buyer for approximately $300 million. The homes are located across Atlanta, Georgia and Nashville, Tennessee.
The announcement continues a long-term trend for GTIS. Over the last three and a half years, the company has sold 2,630 additional homes to institutional buyers for approximately $400 million. In addition, it is in the process of selling another 376 homes through retail channels.
With the sale, GTIS has now completed the disposition of most of the homes it acquired in the wake of the housing crisis. The company entered the space in 2012 when home values were depressed. Since then, the company has owned or managed over 4,700 SFRs in nine markets. As values recovered, GTIS began selling those homes.
Tom Shapiro, president and CIO at GTIS, said the company’s SFR investments have been strong performers and have generated attractive risk-adjusted returns for its investors. “Institutional investor interest in the asset class has gained momentum and we continue to see strong consumer demand for SFR product,” he said in a prepared statement. “This sale represents an important milestone for our firm as we exit the first phase of our SFR platform and shift our focus to providing new purpose-built rental product to a market that is in desperate need of new, high-quality supply.”
Earlier this month, GTIS announced that it shifted its focus to the build-to-rent space, developing large-scale purpose-built single-family and townhome rental communities.
“BTR is one of our highest conviction investment ideas and we are investing in our own execution capabilities in order to capture the market opportunity,” Shapiro said in a prepared statement at the time.
Rob Vahradian, a senior managing director at GTIS, says the company has seven BTR projects underway at various stages of development across Phoenix and South and Central Florida. The seven projects currently under development total 1,370 units and an estimated $340 million in cost. In addition, there are more in the pipeline.