New Partnership Will Seek to Acquire 1,000+ Single-Family Rental Homes Per Year
Magnolia Capital has announced the formation of a new Joint Venture with Principal Real Estate Investors, the real estate investment team for Principal Global Investors, to pursue opportunities to acquire, renovate and operate single-family rental homes throughout the United States. Magnolia Capital’s single-family brand vertical, National Home Rentals (“NHR”), will pursue homes on behalf of the Joint Venture with the goal of acquiring 1,000+ homes per year and constructing a diversified, national portfolio within target markets that exhibit strong underlying supply and demand trends.
“Our vision for the single-family rental sector is consistent with our approach in multifamily—to embrace a data-driven, customer first approach that allows us to create a differentiated product for our residents and compelling results for our investors. We are thrilled to partner with Principal Real Estate Investors, a thoughtful investor that shares our conviction for this unique investment opportunity within the asset class,” said Max Peek, Founder, CEO & Managing Principal at Magnolia Capital.
Magnolia’s vertically integrated platform will leverage a combination of real estate track record and knowledge, with a hands-on, tech enabled approach to enhance oversight and accountability across the organization. NHR’s proprietary single-family technology platform streamlines the acquisitions process while providing a dedicated all-in-one property management software solution to minimize execution risk and deliver a superior resident experience.
“Our core mission has always been centered around providing our residents with best-in-class service and a seamless end-to-end leasing and living experience. We are eager to leverage our longstanding single-family rental operating expertise and innovative proprietary technology on behalf of the partnership with the exceptional team at Principal,” said Dan Bednyak, President & Principal at National Home Rentals, and Managing Director of SFR at Magnolia Capital.
Magnolia Capital was advised by Eastdil Secured for capital placement services.
About Magnolia Capital Group
Magnolia Capital is a vertically integrated real estate investment management firm focused on identifying and creating value within rental housing investment sectors. The company’s founding principals have a distinctive blend of institutional real estate investment experience combined with a deep knowledge of technology and operational efficiencies. Magnolia Capital has been involved in over $3.1 billion of multifamily and single-family real estate investments, representing 8,500+ units in 15+ markets across the United States.
About Magnolia’s Single-Family Vertical, National Home Rentals
National Home Rentals (“NHR”) is a rapidly growing operator of single-family rental homes across the U.S. Founded in 2017, the firm has acquired over 1,200 homes in seven states. Magnolia Capital and NHR have formed ventures with plans to invest in over $2 billion of gross capital into single-family rental homes over the next several years and across various strategies.
About Principal Real Estate Investors
Principal Real Estate Investors is the dedicated real estate investment group within Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®. As a top 10 global real estate manager Principal Real Estate Investors has more than 60 years of real estate investment experience. The firm’s capabilities span the spectrum of public and private equity and debt investments, and it manages or sub-advises $105 billion in commercial real estate assets (as of December 31, 2021).