- Spanish investment firm Azora and U.S.-based Advenir have formed a $3B partnership called Advenir Azora, which aims to provide affordable rental housing in key U.S. markets.
- The new entity will focus on developing 10K new single-family rental homes and acquiring an additional 5K existing units over the next five years.
- The partnership combines Azora’s global investment experience with Advenir’s operational expertise to capitalize on the housing shortage and market conditions.
In a major move to help alleviate the housing shortage, Azora, an $11B Spanish investment management firm, and Advenir, a leading U.S. real estate investment corporation, have formed a $3B partnership, as reported by Yahoo! Finance.
Named Advenir Azora, this new company will take a vertically integrated approach, spanning acquisition, development, and property management, with the aim of boosting the availability of rental housing across key U.S. markets.
Addressing The Shortage
The new partnership between Azora and Advenir comes as the U.S. grapples with a housing shortage of over 5 million homes, compounded by the rising costs of homeownership. Advenir Azora’s goal is to provide an attainable rental solution through significant investments in new development and acquisition of existing rental properties.
Advenir, which has nearly $5B in investments across multi-family and single-family rental communities, will be leveraging its expertise alongside Azora’s global financial capabilities to address these needs.
Stephen Vecchitto, CEO of Advenir, emphasized that the partnership would help expand their existing portfolio of purpose-built single-family homes from 4.7K to 10K units, while also enhancing their capacity to acquire additional properties.
Strategic Opportunity
According to Azora’s Managing Partner, Fernando Pérez-Hickman, the partnership is as much about making a difference as it is about capitalizing on an investment opportunity.
“More than just good business, this endeavor will help countless families,” said Pérez-Hickman. He noted that Advenir’s operational excellence and local expertise make them an ideal partner to pursue new opportunities across the country.
Investment Goals
Over the next five years, Advenir Azora aims to deploy more than $3B into both the acquisition of existing properties and the development of new rental units. The focus is on developing at least 10K new single-family rental homes and acquiring around 5K existing units.
This significant pipeline will help ease pressures in the rental market by creating more affordable options, especially in an environment where buying a home has become less attainable for many.
In Summary
Advenir Azora is poised to invest heavily in both multi-family and single-family build-to-rent housing across various U.S. markets. Their long-term vision is to become a leader in rental housing development, addressing both the housing shortage and the gap between rising homeownership costs and rental affordability.
As the market dislocation continues, the new venture is prepared to meet the growing demand for quality rental homes in the U.S.
