As noted in the intro to May 4's
BlackRock: "5 ways the world could change: An investor watchlist":
....There are actionable points made rather than something that looks like
compliance stripped the life out of the commentary. One example, and it
is just an example, in this piece is point 2 below. If you get the
urban/rural question right, and get your bets down you won't have to
make too many other macro decisions for the rest of your life..
Think John Templeton going into Japan at 2-3 times earnings and riding that market 40-fold.
Catching the big trends makes the rest of this stuff a bit easier.
And the headliner from CNBC, May 14:
- American Homes 4 Rent, a California-based, single-family rental REIT,
recently closed on a deal to build 34 homes in Sovana and Spring Valley,
the former on the outskirts of Las Vegas and the latter a close-in
suburb. They will be larger homes, 12 three-bedroom units and 22
four-bedrooms.
In its first joint venture with JP Morgan
Asset Management, one of the nation’s largest single-family landlords
is building its own rental homes near Las Vegas, NV, banking on a new
millennial push to the suburbs--a push now accelerating due to the
coronavirus.
American Homes 4 Rent,
a California-based, single-family rental REIT, recently closed on a
deal to build 34 homes in Sovana and Spring Valley, the former on the
outskirts of Las Vegas and the latter a close-in suburb. They will be
larger homes, 12 three-bedroom units and 22 four-bedrooms.
The
deal is clearly an effort to capitalize on a new desire among
city-dwellers to find additional space in pristine, new homes outside
the dense downtowns besieged by the deadly coronavirus outbreak.
“We
see this shift as particularly prevalent among the millennial
generation, the largest U.S. age cohort, who are looking to transition
away from apartment living,” said Mike Kelly, Head of Real Estate
Americas at J.P. Morgan Asset Management. “The move towards more
spread-out living is also expected to accelerate in the wake of the
COVID-19 pandemic, and we anticipate strong occupancy and rental growth
rates across properties.”
The first home deliveries are expected
this June and completion is anticipated by October 2020. And that’s just
the beginning. The two are looking to spend $625 million to develop
approximately 2,500 single-family rentals across multiple markets in the
West and Southeast.
As of March 31, 2020, American Homes 4 Rent
owned 52,776 single-family properties in 22 states. J.P. Morgan owns a
similar number of multifamily units on behalf of institutional investors
throughout the United States, according to the release....
....
MORE
