Partnership will invest an initial
$235 million across a portfolio of
single-family build-to-rent developments throughout key sunbelt
markets
CHARLOTTE, N.C.
and CHICAGO, May 1, 2024
/PRNewswire/ -- Crescent Communities, Heitman, and a state
pension fund separate account today announced the formation of a
joint venture to invest in the HARMON by Crescent Communities single-family
build-to-rent platform across 14 key strategic growth markets, with
a $235 million initial investment in
projects across North Carolina,
Texas, Tennessee and Arizona, set to begin construction this
spring.
The venture's communities will become part of the
HARMON by Crescent Communities
brand, which focuses on offering a premier rental experience with
the benefits traditionally associated with single-family living –
including privacy, extra living space, and a sense of community
pride – without the friction of homeownership. Together,
Crescent Communities and Heitman will leverage their
collective experience and track records across industry sectors to
establish new and support existing communities of differentiated,
high-quality housing options in attractive sunbelt markets.
"The expanding relationship with Heitman
during a very challenging capital markets environment is a
testament to this growing sector and the confidence in our brand,"
said Tony Chen, senior managing
director of Single-Family Build-to-Rent at Crescent Communities.
"This partnership further cements Crescent Communities as a leader
in our field, implementing our vision of how rental communities
should be designed, developed, and operated, and successfully – and
consistently – delivering high-quality communities."
Residents will have the option to choose from a
combination of three- and four-bedroom townhomes or detached
single-family houses, and each community will include unique
amenities and features with engaging spaces to encourage residents
to fully immerse themselves in the neighborhood. Every home will be
energy and water efficient, offering residents a greater degree of
comfort and lower utility bills.
"We are excited to kick off this venture with
Crescent Communities as we believe demand fundamentals for
single-family rental housing will continue to grow at an attractive
pace," says Brian Pieracci, Head of North America Private
Equity at Heitman. "Over the next decade, we expect a growing
number of older millennials and retirees to rent as median home
prices have grown at twice the pace of median incomes since 2000,
making home purchasing less attainable and far less desirable. We
believe that the HARMON product
line and the locations that Crescent Communities is targeting are
well suited to meet this demand."
Crescent Communities continues to experience
significant growth, with $8.4 billion
of multifamily and commercial investments and developments
currently under construction, in operation, or planning, including
17,700 units of multifamily and 7.1 million square feet of office,
industrial and life sciences space. Crescent's diverse multifamily
portfolio, combined with its longstanding relationships with
contractors and homebuilders in addition to the Sumitomo Forestry
homebuilder collection, will amplify opportunities to drive rapid
growth and expansion for the HARMON by Crescent Communities business
line.
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 multifamily and commercial
communities in many of the fastest growing markets in the United States. Since 1963, our development
portfolio has included more than 85 multifamily communities and 24
million square feet of commercial space. Crescent Communities has
offices in Charlotte, DC,
Atlanta, Orlando, Nashville, Dallas, Denver, and Phoenix. Our multifamily communities are
branded NOVEL, RENDER and HARMON by Crescent Communities, our industrial
developments are branded AXIAL by Crescent Communities, and our
life science developments are branded THE YIELD by Crescent
Communities.
About Heitman:
Heitman is a global
real estate investment management firm with $50 billion in assets under management as of
March 2024. Founded in 1966 and
headquartered in Chicago, Heitman
has 10 offices worldwide and is an active participant in the global
real estate property and capital markets. Heitman makes real estate
investments through private equity, debt, and publicly-traded real
estate securities.
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SOURCE Crescent Communities and Heitman