KKR & Co. is making a new game for the suburbs and is launching a new single family home landlord, My Community Homes, who plans to buy and manage rental homes in the United States.
KKR invests in the platform through its real estate and personal loan funds, according to knowledgeable individuals who have asked not to be identified as the matter is private. The number of homes and regions the company was targeting could not be determined immediately.
A representative from New York-based KKR declined to comment.
The company's latest bet comes as Wall Street is putting money into rental housing, betting that aging millennials want bigger living spaces to raise children and that low inventory levels make prices out of reach for many families.
KKR's credit arm previously backed Home Partners of America, a single-family home that Blackstone Group Inc. was planning to acquire this week for $ 6 billion. The company is expected to generate an internal rate of return of around 20% [IRR] on its investments in the company in 2014 and 2018, said one person with expertise.
Elsewhere in the industry, Centerbridge and Allianz Real Estate announced in March that they had made a $ 1.25 billion capital commitment for Upward America Venture, a partnership with Lennar Corp. And Invesco Real Estate recently helped Mynd Management spend up to $ 5 billion on single family home purchases.
Miami-based My Community Homes is led by Chief Executive Officer Marcos Egipciaco, whose previous company, Sovereign Real Estate Group, helped institutional investors buy single family homes. According to LinkedIn, his recent endeavors have hired employees in Florida, Georgia, and Indiana, and filled vacancies in North Carolina.