Scottsdale-based Taylor Morrison Home Corporation, a leading national land developer and homebuilder, and Värde Partners, a leading global alternative investment firm, are pleased to share that they have quickly scaled their Build-to-Rent joint venture. In the first several weeks since the venture’s inception, it has closed on nine assets across Texas, Florida, North Carolina and Arizona.
As previously announced in April, the joint venture was established to develop rental properties as a part of Taylor Morrison’s Build-to-Rent program. The venture includes $850 million in equity commitments, funded 60 percent by Värde Partners and 40 percent by Taylor Morrison. The agreement provides Värde with the exclusive opportunity to invest in the acquisition and development of Build-to-Rent projects identified by Taylor Morrison that meet the venture’s investment guidelines.
The capital will help finance the ongoing expansion of Taylor Morrison’s Build-to-Rent program, which began in 2019 through a branding and servicing relationship with Christopher Todd Communities, a successful early adopter of innovative, luxury rental communities.
“The growth in demand for rental housing in high quality suburban areas continues to outpace supply, creating substantial opportunities for institutional capital,” said Brendan Bosman, Senior Managing Director at Värde Partners.
“This vehicle offers the ability to efficiently scale our Build-to-Rent platform to capitalize on the attractive market dynamics in the horizontal rental arena with a known and respected capital partner. We believe we are in early innings of the evolution of this attractive space and remain very excited about its growth prospects,” said Erik Heuser, Taylor Morrison EVP and Chief Corporate Operations Officer.
In July 2021, the firms also entered into a land banking facility agreement to acquire and develop residential lots across the homebuilder’s markets of operation. Värde and Taylor Morrison have closed on 6,800 lots under the arrangement in 11 markets.
Värde Partners has 28 years of experience investing in real estate with substantial equity and credit investments in residential land development and homebuilding transactions. The Build-to-Rent joint venture and land banking facility will further increase Värde’s U.S. housing footprint in its target markets.
