NexPoint Advisors, L.P., a multibillion-dollar alternative investment platform, announced the formation of a new NexPoint advised real estate investment trust (REIT). NexPoint is partnering with HomeSource Operations, LLC to acquire, build, and operate single-family rental homes in the REIT. The new NexPoint advised REIT will target both existing SFR homes and new construction build-to-rent homes in high-growth markets.
In acquiring existing SFR homes, the new NexPoint advised REIT will focus on homes built no earlier than 2000. Through strategic developer and builder relationships, the REIT will also target new construction BTR homes. The REIT will focus primarily on high-growth secondary and tertiary markets throughout the Sunbelt and Southeastern portions of the United States.
For NexPoint, the parent of the adviser to one of the largest owners of SFR homes in the U.S., this new initiative will help NexPoint further expand its exposure to SFR. NexPoint expanded into the SFR market in 2018 and, through an affiliate, is the adviser of a REIT that now owns and operates more than 22,000 homes. This new initiative also presents NexPoint with unique opportunities to leverage its broad range of capital markets capabilities to help bring creative financing solutions to acquisitions of SFR and BTR homes.
Currently, the new REIT has an existing portfolio of more than 1,000 homes, which NexPoint expects to grow to several thousand homes by year end.
NexPoint views the SFR sector as a core part of our platform and we are pleased to announce a partnership with a quality operator like HomeSource that will allow us to broaden our exposure to this critical sector and expand our SFR platform into new segments."
Matthew McGraner, Chief Investment Officer for NexPoint
Randy Hagedorn, Chief Executive Officer of HomeSource said, "We are grateful to have a partner in NexPoint that understands the need to be entrepreneurial and flexible as we acquire SFR and BTR Homes in the REIT. We look forward to our partnership and using our collective experience and expertise to grow the REIT's portfolio."
NexPoint is a multibillion-dollar alternative investment platform comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. The firm provides differentiated access to real estate and other alternatives through public and private REITs, 1031 exchanges and other tax-advantaged real estate vehicles, closed-end funds, interval funds, and a business development company (BDC). Investment solutions draw on NexPoint's core capabilities in real estate, capital markets, and credit. Within real estate, NexPoint has expertise across multiple property types, including multifamily, single-family rental, self-storage, hospitality, industrial, office/retail, timber, and life sciences. NexPoint is based in Dallas, Texas and is part of an integrated network of investment management and financial services businesses.