Agoura Hills-based American Homes 4 Rent, the nation’s largest publicly traded single-family rental company, announced Tuesday that it acquired Beazer Pre-Owned Rental Homes Inc. for $263 million.
The deal will add 1,300 rental homes to American Homes 4 Rent portfolio of some 25,505 rental properties in 22 states. Beazer, an Atlanta-based new home builder, entered the distressed rental property business in 2012, with an initial investment of $100 million from investors led by buyout firm KKR & Co.
“We are pleased to add these well-located, high-quality homes to our portfolio,” said David P. Singelyn, chief executive officer of American Homes 4 Rent in a written statement. “We expect to move quickly to seamlessly integrate these operations and realize the resulting synergies as we continue to grow our business.”
The Beazer homes are located in Arizona, California, Florida and Nevada, according to the American Homes 4 Rent statement.
In the past two years, real estate investment trusts (REITs), hedge funds and private equity firms have spent $50 billion to buy an estimated 386,000 U.S. rental homes nationwide, according to RealtyTrac. But in recent months, some of the larger players in the single-family rental industry — including Blackstone — have slowed their pace of acquisitions as home prices climbed.
Meanwhile, as Beazer exits the single-family rental market, Lennar, one of the nation’s largest home builders, is considering expanding into the burgeoning residential rental market, according to The Wall Street Journal.
Stuart Miller, chief executive of Lennar, said “single-family development for rent might become a part of our portfolio going forward” if first-time home buyers continue to stay on the sidelines.
For more news on U.S. rental properties, see RealtyTrac’s Residential Property Rental Report.