Oliver Chang, the former head of U.S. housing strategy at Morgan Stanley (MS), is rolling out asset management firm Sylvan Road Capital with the goal of investing $1 billion into the nation's single-family rental market.
Chang's career move reflects his belief in a dwinding demand for actual home purchases. Chang launched the firm with Robert Lee, Sarah Lee and Gavin Kleinknecht, principals at Atlanta-based Delmar Realty Advisors.
The team's goal is to tap into opportunities in the $3 trillion rental market with an initial capital commitment from a private equity firm to buy $300 million in single-family houses.
"America is moving toward a rentership society, and I believe the opportunity to purchase and professionally manage single-family rental homes represents one of the most compelling investment opportunities across all asset classes," said Chang, co-founder and managing director. "My partners have been in the single-family real estate business for nearly two decades and have built a best-in-class acquisition, renovation and management platform specifically designed for these properties."
Chang decided to dive into the rental market after leaving Morgan Stanley, where he led U.S. housing strategy initiatives since 2008.
Atlanta-based Sylvan will acquire and renovate highly distressed single-family properties to convert to rentals.