Progress Residential, one of the nation’s largest operators of single-family rental homes, is planning a significant expansion of its platform thanks to $1 billion in new funding.
Pretium Partners, the parent company of Progress Residential, announced Monday that it raised more than $1 billion that will be earmarked for expanding the company’s single-family rental business.
Pretium, a specialized alternative asset management firm that focuses on residential real estate, mortgage finance, and corporate credit, said Monday that it closed Pretium Residential Real Estate Fund II.
According to the company, the total equity capital secured during the fundraising period exceeded $1 billion, with funds coming into both the new real estate fund and other accounts that are pursuing SFR growth.
Pretium bills itself as the “largest private owner” of single-family rentals in the U.S. The company said that it owns and manages more than 26,000 homes in 15 markets.
The company said that the new fund’s strategy is to provide investors with access to a “diverse pool of single-family homes across attractive major markets in the U.S. that are experiencing above-average employment and population growth.”
According to the company, it will use Progress Residential’s self-managed real estate platform to acquire, renovate and manage its single-family rental portfolio.
The company said that more than 5,000 homes have already been purchased by Progress for the new fund.
“We are pleased with the support Pretium Residential Real Estate Fund II has received from a high-quality base of both new and existing investors,” Donald Mullen, founder and CEO of Pretium, said.
“We are confident that our leading real estate platform, deep sector expertise, and operational advantage will enable Pretium to continue to acquire, renovate, and manage single-family rentals, while seeking to provide our investors with the risk-adjusted returns to which they are accustomed,” Mullen added.
According to Pretium, the fund attracted a “diverse” group of investors from around the world, including insurance companies, pension funds, and high-net worth individuals.