NEW YORK, Oct. 2, 2017 /PRNewswire/ -- Amherst Capital
Management LLC, a BNY Mellon investment boutique specializing in
U.S. real estate, today released a new paper, "U.S. Single Family
Rental—Institutional Activity in 2016/2017," which finds that
institutional ownership of single-family rental (SFR) homes
surpassed 200,000 homes in 2016,2 as institutional
investors continue to capture a growing share of the SFR market.
According to Amherst Capital data, total institutional investment
in SFR homes reached $33 billion at
the end of 2016.
To read the complete paper, "U.S. Single Family
Rental—Institutional Activity in 2016/2017," click here.
"Institutional activity in the SFR market continues to increase,
driven by relatively attractive valuations, modestly strong home
price appreciation and stable financing," said Sandeep Bordia, Head of Research and Analytics
at Amherst Capital. "Our data shows that newer entrants and
mid-sized institutions accounted for the majority of institutional
SFR home purchases over the last year, compared to a slowdown in
buying activity among larger institutional holders. We believe that
evolving demographics, financial factors and shifting consumer
preferences, will keep demand for SFR homes elevated over the
coming years."
In the paper, which is backed by comprehensive data and
analysis, Amherst Capital describes several notable shifts
occurring in the SFR space, including:
- Newer entrants and mid-sized institutions have increased
market share of institution-owned SFR homes, compared to a buying
slowdown among larger institutions.
- Institutional SFR buying shifted geographically to the
Southeast and Midwest U.S., away from Western markets prioritized
by early SFR entrants.
- Recent institutional SFR activity demonstrates the
differences in strategy between public REITS and private mid-sized
institutions.
- We believe demand for SFR homes will remain
strong.
"Amherst Capital's differentiated SFR strategy is an important
component of our commitment to provide attractive real estate
opportunities to institutional investors," said Sean Dobson, CEO and CIO at Amherst Capital.
"SFR is increasingly recognized as a stable, long-term,
institution-owned CRE asset class. Backed by our leading analytics
and vertically-integrated approach, we believe we have built a
strong offering in the asset management industry."
About Amherst Holdings
Amherst Capital Management is minority-owned by Amherst Holdings
LLC, which recognized early-on that the U.S. housing market would
undergo a secular shift away from homeownership toward
single-family home rental and began purchasing and leasing homes in
2010. Through Main Street Renewal, Amherst Holdings' vertically
integrated property manager, the firm acquires, manages and
maintains SFR homes. Overall, MSR provides property management
services to more than 12,000 homes across 18 markets.
About Amherst Capital Management
Amherst Capital
Management LLC is a real estate investment specialist with
approximately $6.1 billion of assets under
management3. Amherst Capital was established in 2014 as
a majority-owned subsidiary of BNY Mellon, and is
minority-owned by Amherst Holdings, LLC. Amherst Holdings is not an
affiliate of BNY Mellon. Texas Treasury Safekeeping Trust Company
is a founding seed investor of Amherst
Capital4. Amherst Capital offers traditional and
alternative real estate investment strategies to private and
institutional investors globally. Amherst Capital's investment
strategies are grounded in deep intellectual capital and
proprietary technology designed to help clients meet their
portfolio needs. For more information please
visit www.amherstcapital.com
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world's leading
investment management organizations and one of the top U.S. wealth
managers, with $1.8 trillion in
assets under management as of June 30,
2017. It encompasses BNY Mellon's affiliated investment
management firms, wealth management services and global
distribution companies. BNY Mellon Investment Management is a
division of BNY Mellon which has $31.1
trillion in assets under custody and/or administration as of
June 30, 2017. BNY Mellon can act as
a single point of contact for clients looking to create, trade,
hold, manage, service, distribute or restructure investments. BNY
Mellon is the corporate brand of The Bank of New York Mellon
Corporation (NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our
newsroom at www.bnymellon.com/newsroom for the latest company
news.
All information source BNY Mellon as of December 31,
2016. This press release is qualified for issuance in the US only
and is for information purposes only. It does not constitute an
offer or solicitation of securities or investment services or an
endorsement thereof in any jurisdiction or in any circumstance in
which such offer or solicitation is unlawful or not authorized.
This press release is issued by BNY Mellon Investment Management to
members of the financial press and media and the information
contained herein should not be construed as investment
advice. Past performance is not a guide to future
performance.
1 Source: Estimated by Amherst Capital based on
Federal Reserve Z.1 release as of June
9 2016; and MSCI, SIFMA data; and data from the National
Multifamily Housing Council.
2 Source: Amherst InsightLabs estimates based on
Corelogic County Record and Transaction Data as of Q4 2016.
3 As of June 30, 2017.
This amount includes $4.5 billion
assets pertaining to certain discretionary multi -sector fixed
income clients of our affiliate Standish Mellon Asset Management
Company, LLC ("Standish"), for
which certain Amherst Capital employees provide advice acting as
dual officers of Standish. In
addition, discretionary portfolios with approximately $396 million are managed by certain of our
employees in their capacity as dual officers of The Dreyfus
Corporation. AUM includes gross assets managed in the single
family equity and commercial real estate strategies, which include
$244 million of leverage and
$17 million of leverage,
respectively.
4 It is not known whether the listed client approves or
disapproves of the adviser or the advisory services
provided.
Media Contact:
Jessica
Rutledge
+1 212-303-1595
jrutledge@amherstcapital.com
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SOURCE Amherst Capital Management LLC