Meeting demand
The partners have committed an initial $200 million of equity to the venture with the potential for an additional $200 million equity commitment.
“We are very excited to have teamed up with two like-minded partners in order to capitalize on the demand for new purpose-built single family housing communities. We believe this growing demand is largely driven by lifestyle and lifecycle changes by Millennials, Gen Xers and Baby Boomers, affordability and an increased trend of ‘renters by choice’- a trend that was further accelerated by the onset of Covid-19. The build-to-rent single family sector currently lacks in supply of modern purpose-built single family housing and our partners and we are well positioned to leverage our collective platforms and expertise. We expect the favorable demand-supply imbalance to continue in the near term with current annual demand estimated at over 250,000 newly built single-family rental homes compared to a current annual supply of approximately 50,000. Great Gulf is in a unique position to leverage its land sourcing, acquisition, development and home building capabilities both internally and via third-party home builders in order to develop a multi-market strategy across the U.S. Sunbelt,” said Ilias Konstantopoulos, CEO of the Great Gulf Group.