Partnership Expects to Invest $1 Billion in Key Sunbelt Markets
HARMON Brand to Offer Benefits of Single-Family Living; First Community HARMON Foxbank Available to Rent in Early 2022
CHARLOTTE, N.C. and NEW YORK, Sept. 16, 2021 (GLOBE NEWSWIRE) — Crescent Communities and Pretium today announced the formation of a joint venture to invest $1 billion in new single-family build-to-rent communities across 14 key strategic growth markets. The first community will be located in the Charleston market and will be closely followed by communities in other cities throughout the Sunbelt.
Together, Crescent Communities and Pretium will leverage each organization’s respective experience and track record to establish new communities of differentiated, high-quality single-family homes for rent in attractive markets. The venture will have a competitive advantage through Crescent Communities’ affiliate relationship with homebuilders in the Sumitomo Forestry portfolio, which operates across the U.S. and collectively builds over 10,000 homes annually. This affiliate relationship offers the venture strategic homebuilding delivery and increased sourcing opportunities that are expected to drive rapid growth for the platform. Progress Residential, Pretium’s single-family rental platform and a leading manager of build-to-rent communities, will manage the venture’s communities, which are expected to be available starting in early 2022.
“Single-family build-to-rent allows Crescent Communities to be a part of the solution to the tremendous under-supply of rental housing in the U.S., and this partnership enables us to develop more than 3,000 new rental homes,” said Tony Chen, Managing Director, Single-Family Build-to-Rent at Crescent Communities. “We look forward to applying best practices from our experience in mixed-use development and are excited to partner with Pretium, which has extensive experience scaling and managing single-family rental portfolios using technology-enabled operating processes.”
“The venture is a natural extension of our industry leading single-family rental platform and an opportunity to offer our residents a gateway opportunity to owning homes in great neighborhoods,” said Matt Johnston, Managing Director, Head of Build-to-Rent at Pretium. “With a complementary market leader in Crescent Communities, we believe this makes for a strong partnership and we look forward to working together to provide accessible, high-quality and professionally-managed build-to-rent housing options in some of the most attractive markets in the country.”
Introducing the HARMON Brand, Focusing on Providing Residents with the Benefits of Single-Family Living
The venture’s new communities will operate under the HARMON brand, with a focus on offering a premier rental experience with the benefits of single-family living – including privacy, extra space, and sense of community pride – without the friction of homeownership.
Residents will have the option to choose amongst a combination of three- and four-bedroom townhomes and/or detached single-family houses, and each community will include features that will offer interactive spaces – such as dedicated outdoor space, walking trails, pocket parks and more – to encourage residents to fully immerse themselves into the neighborhood.
The first community of 109 townhomes, located 25 miles from downtown Charleston in the town of Moncks Corner, SC, will be known as HARMON Foxbank. The builder will be DRB Group, an affiliate homebuilder with Sumitomo Forestry. Construction is slated to begin in October 2021 with first units available to rent in early 2022. HARMON Foxbank will be located near the entrance of the Foxbank neighborhood, a master-planned community that includes for-sale residences, a shopping center, and a newly constructed elementary school.
About Crescent Communities
Crescent Communities is a nationally recognized, market-leading real estate investor, developer and operator of mixed-use communities. We create high-quality, differentiated residential and commercial communities in many of the fastest growing markets in the United States. Since 1963, our development portfolio has included more than 68 multifamily communities, 21 million square feet of commercial space and 60 single family master-planned communities. Crescent Communities has offices in Charlotte, DC, Atlanta, Orlando, Nashville, Dallas, Denver, Phoenix and Salt Lake City. Our multifamily communities are branded NOVEL by Crescent Communities.
Pretium is a specialized alternative investment management firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on secular investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has more than $25 billion of assets under management as of June 30, 2021, and employs approximately 2,500 people across 29 offices. Please visit www.pretium.com for additional information.
About Progress Residential
Progress Residential is a market leader in intelligent single-family rental management services, with people, technology, scale, and data-driven solutions that streamline operations, optimize asset performance, and provide an exceptional renting and living experience for our residents. Progress Residential’s approximately 1,500 employees currently manage over 70,000 homes across 30 markets. Progress Residential also offers third-party property management service for investors with mid-to-large single-family rental home portfolios and Built for Rent communities through its Progress Residential Management Services. For more information, please visit www.rentprogress.com.
Jon Keehner / Julie Hamilton / Lyle Weston
Joele Frank, Wilkinson Brimmer Katcher