A $1 Billion Bet Americans Will Need More Single-Family Rentals 

(Bloomberg) -- Former Goldman Sachs Group Inc. partner Donald Mullen has raised another $1 billion to invest in U.S. rental houses as his firm, Pretium Partners LLC, leases homes to tenants shut out of an inventory-starved sales market.

Pretium closed on its second single-family rental fund with more than $1 billion in equity commitments, demonstrating that investors see staying power in an asset class once viewed as a short-term trade on distressed homes.

The company, which closed on a $1.18 billion fund in 2013, owns 26,000 homes in 15 markets, including 5,000 homes acquired through the new fund. That makes it the third-largest single-family landlord, after the real estate investment trusts Invitation Homes Inc. and American Homes 4 Rent. Pretium recently hired Chaz Mueller, former president of Irvine Co.’s apartment business, to serve as chief executive officer of its management arm, Progress Residential.

A $1 Billion Bet Americans Will Need More Single-Family Rentals 

Mullen founded Pretium in 2012, when investors were buying distressed homes in the aftermath of the foreclosure crisis. After a lull, the big landlords stepped up purchases again last year, according to data compiled by Amherst Holdings LLC, as a shortage of for-sale listings drives millennial families to rental houses.

“A growing demographic of financially stable young adults, coupled with high barriers for homeownership and limited supply of entry-level housing, has created significant demand for quality single-family rental homes,” Dana Hamilton, head of real estate at Pretium, said in a statement.

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