JPMorgan bets on renters seeking more space in Las Vegas homes
JPMorgan Chase & Co.'s asset-management unit and joint-venture partner American Homes 4 Rent are betting on the Las Vegas rental market.
The companies closed on their first project in the Sovana and Spring Valley areas of Las Vegas, according to a statement Thursday. The first deliveries of some 34 single-family homes are expected next month, with completion by October.
The partners recently expanded a $625 million joint venture to develop roughly 2,500 single-family rental homes in high-growth markets in the U.S. West and Southeast. Mike Kelly, head of real estate Americas at JPMorgan Asset Management, said the companies hope to attract city dwellers seeking more living space.
"We see this shift as particularly prevalent among the millennial generation, the largest U.S. age cohort, who are looking to transition away from apartment living," Kelly said in an emailed statement. "The move toward more spread-out living is also expected to accelerate in the wake of the COVID-19 pandemic."
American Homes 4 Rent owned roughly 53,000 single-family properties as of March 31, a similar figure to JPMorgan Asset Management, which oversees capital on behalf of institutional investors, the firms said.
"We believe that our built-for-rental development program has the potential to revolutionize the single-family rental industry," American Homes 4 Rent Chief Financial Officer Christopher Lau said in a statement, also touting technology that gives buyers the ability to tour homes without an agent.