Key facts
- The 21st Century ROAD to Housing Act, restricting large investors from acquiring single-family homes, has become law.
- PPR Capital Management is launching the PPR Keystone Housing Growth Fund with a $100 million fundraising target.
- The fund will focus on acquiring build-to-rent communities from developers.
- The law includes carve-outs for build-to-rent properties, allowing developers to sell to other landlords.
- PPR aims to acquire properties with 150 to 250 units in 10 targeted regions across the U.S.
PPR Capital Management has launched its first fund dedicated to the build-to-rent (BTR) housing sector, aiming to raise $100 million. The PPR Keystone Housing Growth Fund seeks to acquire BTR communities from developers, capitalizing on market opportunities presented by the recently enacted 21st Century ROAD to Housing Act. This federal law restricts large institutional investors from purchasing additional single-family homes, but includes specific carve-outs for BTR properties.
The firm anticipates that the uncertainty surrounding the legislation, coupled with overbuilding in some markets, has created distressed seller situations. PPR plans to target properties with 150 to 250 units in ten key regions, including Dallas, Nashville, and Philadelphia. The fund is open to accredited individual investors with a minimum check size of $50,000.
PPR Capital Management, founded in 2007, has $1.5 billion in assets under management and historically focused on acquiring nonperforming loans before expanding into multifamily and BTR investments. The company views the BTR sector as a strong opportunity due to increasing demand for rental housing that mimics single-family homes, and believes the new law will allow developers to exit existing projects, freeing them to build more.
According to the National Association of Home Builders, an estimated 68,000 BTR housing units began construction in the U.S. last year. Experts suggest that the BTR market could be a significant beneficiary of the new legislation, with PPR executives noting that regulatory headwinds are no longer anticipated.