Alert: PE Firm KKR Gets Into The Single-Family Rentals Game

  • General
  • June 26, 2021
  • 448
  • 4 minutes read

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It seems that asset management firms with wads of cash have set their sights on buying up rental properties to the dismay of local and individual landlords. Just recently, it was Blackstone with its $6bn purchase of a major single-family home landlord, and now it’s fellow private equity firm KKR, which is forming a new single-family landlord backed by its wads of cash.

  • KKR has formed My Community Homes, a Miami-based firm that plans to buy and manage rental houses across the US. The PE firm will provide cash to My Community Homes from its real estate and private credit funds, Bloomberg reports.
  • KKR has already been a major player in the US real estate market, but not usually in the arena of rental homes. In fact, the firm’s real estate division has $28bn in assets under management.
  • Over the past year, asset management firms like KKR have been flush with cash from a bull market and sought new ways to deploy it. It seems real estate, rental homes at that, has been a new frontier to deploy that cash, even as there are concerns of such firms outbidding local landlords or potential homebuyers to buy properties and jack up rental prices.
  • That institutional investors are getting into single-family real estate is something that doesn’t sit well with many, given such firms have much more cash and in turn, power to outbid local landlords and have more control over prices. To that end, there’s been significant opposition.
  • KKR’s My Community Homes is led by CEO Marcos Egipciaco, who had a previous company that helped institutional investors buy single-family rentals. His new venture under KKR has hired staff in Florida, Georgia, and Indiana, LinkedIn data shows.
  • KKR as a firm has over $250bn under management. It’s a major investor across many industries on a global scale.

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