Pretium Successfully Completes $1.5 Billion Transaction for its First Single-Family Rental Fund
Pretium today announced it has successfully completed a transaction for its 2013 single-family rental ("SFR") fund, capitalizing on robust institutional demand for the sector, and nearly doubling net investor equity through rental income growth and long-term appreciation. The transaction was led by Landmark Partners as well as new and existing investors, certain of whom elected to add incremental capital. The innovative transaction provided all investors the option to exit or participate in the next phase of growth.
The newly capitalized vehicle, which consists of over 20,000 cash-flowing rental homes, will continue to be managed by Pretium and serviced by its property and asset management platform, Progress Residential, the largest private SFR operator.
Donald Mullen, Pretium's CEO, commented: "We are delighted with the support we received from new and existing investors on this transaction, which highlights global investors' continued recognition of our demonstrated leadership in the $4 trillion SFR asset class. 2019 has been an active year for Pretium, completing a multitude of strategic events, maximizing value for investors. We look forward to 2020 as we continue to deploy additional investment capital for SFR and other Pretium investment strategies."
Pretium has received approximately $2.5 billion of new and extended SFR capital commitments year-to-date across various investment structures. Pretium's Progress Residential platform services over 90,000 residents and employs over 1,000 dedicated real estate professionals.
PJT Park Hill Group, Morgan Stanley and Ardea Partners served as financial advisors and Sidley Austin LLP served as lead legal advisor on the transaction, with Hunton Andrews Kurth LLP, Davis Polk & Wardwell LLP and Kirkland & Ellis LLP providing specialty counsel.
ABOUT PRETIUM
Pretium is a specialized alternative investment management firm focused on real estate, residential credit and corporate credit with $13 billion in assets. 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, the residential housing sector, and mortgage finance markets. Pretium has built an integrated analytical and operational ecosystem within the U.S. residential housing, mortgage, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. For more information, please visit www.pretium.com.
ABOUT PROGRESS RESIDENTIAL
Progress Residential is a property and asset management platform headquartered in Scottsdale, AZ. Progress was founded to enhance resident service and asset performance. Progress currently manages over 36,000 homes across 15 core markets and is adding nearly 10,000 to its platform annually. For more information, please visit www.rentprogress.com.
ABOUT LANDMARK PARTNERS
Landmark Partners specializes in private equity, real estate, and infrastructure transactions, with approximately $27 billion of committed capital as of June 30, 2019. Founded in 1989, the firm has one of the longest track records in the industry and is a leading source of capital to owners of interests in real estate, real asset, venture, mezzanine and buyout limited partnerships. Landmark has completed over 650 transactions in its 30-year history and acquired over 2,375 partnership interests, managed by over 800 general partners, as of June 30, 2019. Landmark Partners has more than 135 professionals across five offices in Boston, Dallas, London, New York and Simsbury, Connecticut. www.landmarkpartners.com.
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