Apollo Seeks $400 Million for 1,400 Rental Houses
(Bloomberg) -- Apollo Global Management LLC is seeking buyers for a portfolio of 1,400 single-family rental homes, according to people with knowledge of the matter.
The homes, located in Atlanta, Chicago, Las Vegas and California, could fetch roughly $400 million, according to one of the people, who asked not be identified because the discussions are private. Some of them are managed by Haven Homes, some of the people said.
A spokesman for Apollo declined to comment. A representative for Haven Homes didn’t respond to voice messages.
Portfolios of rental houses have been trading hands recently as large landlords raise new funds and early institutional investors in the asset class cash in gains. Last month, Angelo, Gordon & Co. said it had reached an agreement to buy 1,225 single-family rental homes for about $140 million, and Highland Capital Management LP agreed to buy rental houses for more than $300 million.
Real estate investors including Blackstone Group LP and Tom Barrack’s Colony Capital Inc. jumped into a business traditionally run by mom-and-pop investors following the foreclosure crisis. Institutional demand is picking up again as aging millennials trade apartments for rental abodes to house their young families.
Investors including Pretium Partners LLC, Tricon Capital Group Inc., and Cerberus Capital Management LP have raised funds recently to buy single family rentals.
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