GTIS Partners Announces Approximately $300 Million Sale of Single-Family Rental Portfolio

Firm Completes $700 Million Single-Family Rental Disposition Program

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Jun 30, 2021, 09:00 ET

NEW YORK, June 30, 2021 /PRNewswire/ -- GTIS Partners ("GTIS"), a real assets investment firm that manages in excess of $4 billion in gross assets with a US focus on residential and industrial/logistics investments, announced the sale of 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.

With the sale, GTIS has now completed the disposition of substantially all the homes it acquired in the wake of the Housing Crisis. Over the last three and a half years GTIS has sold 2,630 additional homes to institutional buyers for approximately $400mm and another 376 homes have been sold or are in the process of being sold through retail channels.

GTIS first entered the SFR space in 2012. Home values were depressed, presenting the opportunity to acquire homes at attractive prices either in foreclosure or through REO acquisitions to be rented until the housing market's eventual recovery. Since 2012, GTIS has owned and/or managed over 4,700 SFR homes scattered across nine markets. As the recovery progressed and market conditions evolved, GTIS gradually exited its investments in scattered SFR homes and is instead continuing to execute its SFR strategy by developing communities of purpose-built SFR homes or build-to-rent ("BTR") communities.

Tom Shapiro, President and CIO at GTIS, said, "Our SFR investments have been strong performers to-date and have generated attractive risk-adjusted returns for our investors. Institutional investor interest in the asset class has gained momentum and we continue to see strong consumer demand for SFR product. 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."

BTR offers investors a long list of operational and acquisition related efficiencies that can enhance returns, while also offering what GTIS views as a more attractive product for renters given its purpose-built nature, access to community amenities and on-site staff. GTIS intends to self-develop its BTR investments, recently announcing the addition of Gary Davis, Bill Mumford, and Kurt Rouse to its existing BTR team. By self-developing the communities, GTIS can add value for renters and investors through a differentiated approach with communities designed from inception for renters' needs.

Rob Vahradian, a Senior Managing Director at GTIS, added, "We have seven BTR projects underway at various stages of development across Phoenix and South and Central Florida, and more projects in the pipeline. The seven projects currently under development total 1,370 units and an estimated $340 million in total project cost."

About GTIS Partners
GTIS Partners is a leading real asset investment and development firm headquartered in New York with offices in São Paulo, San Francisco, Los Angeles, Atlanta, Paris and Munich. The firm was founded in 2005 by Tom Shapiro and is managed by President Tom Shapiro and Senior Managing Directors Thomas Feldstein, Josh Pristaw, João Teixeira, Rob Vahradian and Amy Boyle. The firm manages over $4 billion in gross assets and is active across a wide range of real estate sectors including single family and multifamily housing, office, industrial/logistics and hospitality as well as renewable energy infrastructure and opportunity zone investments. The firm invests at various points in the capital structure including credit, common equity and structured equity. In the US, GTIS has invested in over 130 assets across 40 unique markets including growth areas such as Phoenix, Dallas, Houston, Denver, Atlanta, Tampa and Charlotte. In Brazil, GTIS is among the largest real assets private equity firms with holdings including office, residential, logistics, hospitality and renewable energy investments. Marquee assets in São Paulo include the Infinity office building and Palácio Tangará, a five-star resort style hotel.