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J.P. Morgan & American Homes 4 Rent Add $375MM to Single-Family JV Targeting Seattle Market

J.P. Morgan, American Homes 4 Rent, Seattle, Olympia, Tacoma, Lynnwood, Everett, Kent, Puyallup, JP Morgan Strategic Property Fund

By Jon Peterson

New York City based J.P. Morgan Asset Management and Agoura Hills, Calif-. based American Homes 4 Rent have increased its development joint venture by an additional $375 million, according to information provided by the two companies.

One of the targeted markets for American Homes 4 Rent as a company is Seattle, as stated by the publicly-traded company on its website. Some of the areas around Seattle where the company already holds assets include places Olympia, Tacoma, Lynnwood, Everett, Kent and Puyallup, and with this added allocation, the joint venture will look to increase that presence.

The initial joint venture between the two companies was formed earlier this year with an investment of $250 million. With the new investment, the venture now has a total amount of equity of $625 million. The long-range plan is to invest the capital into the development of 2,500 purpose built single-family homes for rent that the venture would own and manage on a national scale.

J.P. Morgan holds an 80 percent ownership position in the joint venture. This real estate manager has made its investment into the venture for its core open-ended commingled fund that goes by the name of the JP Morgan Strategic Property Fund. American Home 4 Rent has a 20 percent interest in the venture.

The first new development for the venture has already closed. This is for a development of 34 homes in Las Vegas, NV. The first home deliveries are expected this June, and completion is anticipated by October of this year. By the end of 2020, the venture has plans to find projects to build in markets in the West and Southeast where American Homes 4 Rent already has a presence.

“This partnership provides us with the opportunity to capitalize on an increasing trend amongst city dwellers to seek additional space and the appeal of high-quality suburban living in a newly constructed community,” said Mike Kelly, head of Real Estate Americas at J.P. Morgan in a prepared statement.

The venture with America Homes 4 Rent is a new one for the company. “We are proud to be partnering with J.P. Morgan and value the endorsement of our industry-leading build-for-rental development program,” said Christopher Lau, chief financial officer for American Homes 4 Rent in a prepared statement.