Magnolia Capital and Principal Real Estate Investors announced today the formation of a new Joint Venture, intended to acquire, renovate and operate single-family rental homes throughout the U.S., according to a press release.
Magnolia Capital says its single-family brand vertical, National Home Rentals (NHR), will pursue homes on behalf of the Joint Venture, with a goal of acquiring over 1,000 homes per year and constructing a diversified, national portfolio within target markets.
The firm says that its NHR vertical will use its real estate track record and hands-on, tech-enabled approach to enhance oversight and accountability through the process. It added that its proprietary single-family tech platform streamlines the acquisition process and provides an all-in-one property management solution that minimizes execution risk and delivers superior resident experiences.
“Our core mission has always been centered around providing our residents with best-in-class service and a seamless end-to-end leasing and living experience. We are eager to leverage our longstanding single-family rental operating expertise and innovative proprietary technology on behalf of the partnership with the exceptional team at Principal,” said Dan Bednyak, president and principal at National Home Rentals and managing director of SFR at Magnolia Capital.
Principal Real Estate Investors is the dedicated real estate investment group within Principal Global Investors, a diversified asset management organization and top 10 global real estate manager. The firm spans public and private equity, as well as debt investments and currently manages or sub-advises over $105 billion in commercial real estate assets.
Magnolia Capital was advised by Eastdil Secure for capital placement services, according to the release.
“Our vision for the single-family rental sector is consistent with our approach in multifamily—to embrace a data-driven, customer first approach that allows us to create a differentiated product for our residents and compelling results for our investors,” stated Max Peek, founder, CEO and managing principal at Magnolia Capital.
“We are thrilled to partner with Principal Real Estate Investors, a thoughtful investor that shares our conviction for this unique investment opportunity within the asset class,” Peek said.
In other recent recent property technology news, Figure and Apollo completed a digital mortgage transaction and ownership transfer via blockchain. JLL also announced the launch of its new valuation product, Valorem.