Pretium and Ares Management have agreed to purchase Front Yard Residential in a deal valued at $2.4 billion that would create the second-largest single-family landlord in the U.S, Bloomberg first reported. The equity value of the deal is about $800 million.
- Be Smart: Wall Street has been plowing money into the single-family rental industry in recent months, betting on the demand for homes with more space in the suburbs. While record-low mortgage rates have fueled a housing rally, that’s driven up prices, possibly pushing homeownership out of reach for many. The new combined company would own and operate more than 55,000 homes across the U.S., making it the second-largest landlord in the industry.
- Worth Noting: Blackstone Group, Nuveen Real Estate, and JPMorgan’s asset management arm have all made fresh bets on rental houses since the pandemic started. [Bloomberg]