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Latham & Watkins Represents Invitation Homes in Partnership With Rockpoint Group

March 7, 2022
Firm advised the premier single-family home leasing company on US$300 million joint venture to expand growth opportunities and meet growing demand for rentals in premium locations.

Invitation Homes Inc. (Company) announced it has entered into an agreement with Rockpoint Group, L.L.C. (Rockpoint) to form a new joint venture (JV) partnership that will acquire homes in premium locations and at higher price points relative to the homes currently targeted by the Company and its previous venture with Rockpoint, which the two companies announced in October 2020.

The JV will be capitalized with a total equity commitment of US$300 million, of which US$50 million will be committed by Invitation Homes and US$250 million will be committed by Rockpoint. A total of approximately US$750 million (including debt) is expected to be deployed by the JV to acquire and renovate single-family homes in premium neighborhoods that command price points and rents that average 30%-60% higher than those targeted by Invitation Homes’ traditional investment strategy. The companies plan to focus on top-quality submarkets within the Western US, Southeastern US, Florida, and Texas. Invitation Homes will provide investment, asset management, and property management services to the JV, for which it will earn asset management and property management fees and have the opportunity to earn a promoted interest subject to certain performance thresholds.

Latham & Watkins LLP advised Invitation Homes on the matter with a corporate deal team led by New York partner Michael Haas, with associates Mark Semotiuk and Daniel Soso. Advice on tax matters was provided by Century City partner Ana O’Brien and counsel Will Kessler.