Walker & Dunlop, Inc. announced today that it structured a joint venture partnership between Avanta Residential, a build-for-rent (BFR) developer, and Invesco Real Estate, a global real estate investment manager. As part of the transaction, Invesco Real Estate acquired 75% of Avanta Residential, which is developing more than 20 neighborhoods and approximately 5,000 homes. Formed in 2020, Avanta plans to create over 40 neighborhoods over the course of the next several years.
Walker & Dunlop’s dedicated BFR team served as exclusive advisor to Avanta Residential and helped the firm identify a joint venture partner to provide both funds and support as they execute their business plan. The team partnered with Dallas-based Invesco Real Estate for the joint venture. In addition to facilitating the transaction, the Walker & Dunlop team played a key role in developing the terms of the agreement as well as support throughout the negotiation process.
“Walker & Dunlop’s team brought acuity and skill to this equity deal. They met and exceeded the requirements of this complex transaction,” commented Jim Dobbie, President of Avanta Residential. “Their extensive knowledge of the BFR asset class and their advisory role were critical in helping us find the ideal equity partner.”
Cliff Carnes, Senior Vice President and Chief Production Officer for Walker & Dunlop, added, “Our team was thrilled to advise Avanta in this exciting programmatic raise. This transaction is a testament to the strength of Avanta’s vision and strong execution capabilities.” He continued, “Combining the focus of our structured finance group with the strength of our dedicated BFR team allowed Walker & Dunlop to identify an equity partner whose experience and capital structure aligned well with that of our client.”
BFRs are purpose-built housing to be operated as single-family rental investments within a contiguous community. This rapidly growing asset class is emerging as one of the strongest sectors in commercial real estate, and it is estimated that 5-10% of new build homes are for BFR communities. The product has been steadily increasing in popularity due to current demographic trends related to Gen-Y and baby boomers. As more young families, families with children, and retirees look to rent single-family homes with yards and upscale amenities on a long-term basis – and migration patterns related to COVID-19 have accelerated demand. As the demand for BFR properties grows, an increasing number of larger investors are expanding their investment strategy to include the product.
Walker & Dunlop’s BFR & SFR Practice Group is comprised of 12 experts strategically positioned across the business to finance and sell these specialty communities. Our national team provides expert guidance on property sales, debt origination, and the structuring of equity to generate optimal returns and strategic relationships for our clients. The team is active with over fifty groups in the space, which range from institutional clients, homebuilders, multifamily developers, and individual investors. With an active pipeline of over $1.9 billion of transaction volume, the team has extensive experience executing on lending, capital brokerage, or investment sales opportunities. For more information on our Build-for-Rent practice group or to connect with an advisor, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.