JLL to invest $500m in SFR market as industry legislation risks worsening

Institutional investors bought single-family homes, pushing overall prices higher.

JLL Income Property Trust deepened the single-family rental trend by launching a new program that plans to acquire up to $500 million in single-family homes over the next two years, alongside the Amherst development and operating platform.

JLL will own a 95% interest in the business, with Amherst owning the remaining 5%.

“Single-family rental homes are one of our strongest real estate sectors given the many tailwinds that should provide resilient demand and the potential for attractive rental growth within this carefully selected portfolio,” said the President and CEO of JLL Income Property Trust. Allan Swaringen said in a statement.

This isn’t the first time JLL and Amherst have partnered on a residential property. Previously, JLL acquired a 47% stake in a 4,000-unit portfolio in which Amherst was a partner and operator.

Investment in SFR peaked last year, when black stone fell $6 billion to acquire Home America Partners – a company that owned more than 17,000 homes across the United States.

The level of investment from institutional investors in the SFR market has spurred legislative action, but leadership changes in the US House of Representatives could stifle any potential roadblocks in the works.

A bill introduced in October by California Democrats, dubbed the “Stop Wall Street Landlords Act,” aims to reign in SFR ownership by targeting companies with $100 million in assets with taxes on their transactions.

However, now that Republicans have taken control of the House, speculation has grown over whether such a bill will even make it to the ground, according to comments made to Business Insider by Senior Vice President of Green Street Tyler Blue.

Blue also noted that as the size of SFR’s investments continues to grow, the conversation about industry regulation isn’t expected to end anytime soon.

Comments are closed.