GTIS Partners and 643 Capital Management Announce Launch of StreetLane Homes; Emerges as Top-10 Vertically-Integrated Provider of Single-Family Rentals to Millennial Marketplace

January 18, 2017

Portfolio Comprises More than 3,500 Properties in Seven Markets; Company Looks to Acquire Additional Homes

Opens 77-Person Management Office in Dallas

January 04, 2017 10:11 AM Eastern Standard Time
NEW YORK–(BUSINESS WIRE)–GTIS Partners LP (“GTIS”), a real estate private equity firm headquartered in New York City, with offices in São Paulo, Los Angeles, San Francisco, Atlanta, Paris, and Munich, and 643 Capital Management, a real estate private equity firm focused on debt and equity real estate investments, today announced the launch of StreetLane Homes, an integrated single-family home rental investment and management company.

StreetLane and its predecessor entities have amassed a portfolio of more than 3,500 homes with an overall 94% occupancy rate, comprising $445 million in cost, in Atlanta, Dallas, Houston, Chicago, Las Vegas, South Florida, and Nashville. The company is among the 10 largest single-family home owner/operators in the U.S.

643 Capital’s founder and Chief Investment Officer Gregor Watson was also a pioneer in the single-family home rental sector, having acquired 1,200 homes since 2009, spanning six states prior to 643’s joint venture with GTIS Partners. StreetLane is headquartered in San Francisco, with its property management affiliate headquartered in Dallas. In total, the company has 77 employees nationwide.

“Not since we first started speaking about the pending retirements of Baby Boomers has a group created as much of an impact on the U.S. economy as Millennials, who’ve now overtaken Boomers as the country’s largest and most influential generation,” said Tom Shapiro, President & CIO of GTIS Partners. “Research studies, and our empirical data, show that for a variety of reasons fundamental to their financial standings and preferences, Millennials, especially those at the younger end of the age range, often prefer to rent their homes rather than own them.”

Single family rentals are the largest segment of the U.S. rental marketplace, comprising nearly 16 million units, or 13% of the total housing stock and 35% of all rentals. This segment of the housing market is supported by strong demographics with Millennials starting families but who lack the down payments and credit to buy.

“The current market environment provides an opportunity to grow through portfolio or entity-level acquisitions as the single-family rental industry starts to consolidate,” said Rob Vahradian, Senior Managing Director and Head of U.S. Investments at GTIS Partners. “With only two percent of the 16 million single family home rentals owned by institutions, the extremely fragmented market is likely to support continued consolidation opportunities similar to the multifamily industry in the 1990s before the asset class became an institutional real estate portfolio staple today.”

Added Gregor Watson, “The establishment of the single-family rental asset class as an institutional investment came from the advancements in technology, giving an effective and efficient way to manage thousands of homes across the country, which would not have been possible a decade ago. The consistency and strong yield this sector has shown over the last few years has many of the world’s largest investors taking notice. StreetLane is well positioned to lead this opportunity.”

About GTIS Partners

GTIS Partners is a global real estate investment firm headquartered in New York with offices in São Paulo, Los Angeles, San Francisco, Houston, Atlanta, Paris, and Munich. GTIS Partners has 83 employees and currently has approximately $3.8 billion of assets under management. To date, the firm has committed capital to residential, retail, industrial, office, hotel and mixed-use projects in the U.S. and Brazil. In the U.S., GTIS has committed over $1.4 billion of equity and debt to 87 projects in 22 states. In Brazil, GTIS has invested in 91 assets comprised of approximately 13,000 residential units, over 500,000 square meters of office and industrial space, and over 9,800 hotel rooms owned, managed, or under development. By combining hands-on real estate expertise with a disciplined investment approach, GTIS Partners helps create value for its investors and partners. The firm pursues opportunistic real estate investments through direct equity investment and non- traditional lending activities and the firm relies on macro-research as well as the hands-on industry knowledge of its experienced investment and asset management teams. For further information, please visit www.gtispartners.com.

About 643 Capital Management

643 Capital specializes in identifying inefficiencies in real estate markets and bridging the gap between institutional capital and on the ground operations, bringing scale and efficiency to previously underserved segments of the market. 643 Capital has been a pioneer in developing some of the fastest growing real estate investment opportunities, including bringing institutional investment to single family rental homes and providing financing to investors in single family homes on a national scale. The firm is centrally located in the Bay Area with presence in Atlanta, Chicago, Dallas, Houston, Las Vegas, Miami, and Nashville. 643 Capital’s team has directly invested over $1.6B of residential, retail, commercial and multi-family debt and equity transactions across the U.S.

Reposted from Business Wire

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