Hidden Potential: The Institutional Consolidation of Single-Family Rental Homes
Interest in single-family rental (SFR) homes has risen in the COVID era, as more people are fleeing urban areas for more spacious suburban settings. Even prior to 2020, this sector benefits from a variety of demographic and economic trends. The disruption caused by the pandemic changed how people work and learn making this sector a largely untapped asset class for investors.
As top asset managers are revisiting a successful strategy that emerged from the last financial crisis, investing in single-family homes to rent has increased in popularity. Institutional asset managers expect this sector to mature into an income-generating asset class strategy similar to apartments. Hear as leading asset managers discussed the following:
- What is driving the bullish sentiment and investor interest in SFR, is this just a Covid story that could fade post-vaccines?
- The SFR market has two major tenant types. What are the pros and cons of each?
- What could go wrong in the SFR space to shift or change the bullish opinions dominating the market?
- A comparison of sectors: SFR vs Multifamily
Ben AitkenheadManaging Director, Pacific Oak Capital Advisors
Head of Private Placements at Pacific Oak since 2017. Independent director for Blackstone Real Estate Income Fund since 2013. Previously at Credit Suisse in New York for 22 years. Expertise in commercial and residential real estate, structured finance, capital markets, client relationships and trading. MA from NYU, and BA from Oxford University UK.
Billy ButcherCOO of Global Real Estate Business, KKR
Billy Butcher (New York) joined KKR in 2004 and is the Chief Operating Officer of KKR’s global real estate business. Mr. Butcher serves on KKR’s real estate investment committees and leads the firm’s investments in real estate corporate platforms globally. Mr. Butcher previously co-led U.S. real estate acquisitions, and before helping to establish the firm’s dedicated real estate investment business in 2011, he worked in the Firm’s corporate private equity business in the U.S. and Asia. Prior to joining KKR, he was at Goldman, Sachs & Co. He holds an A.B., summa cum laude, from Princeton University, and an M.B.A. from the Stanford University Graduate School of Business, where he was the Henry Ford II Scholar and an Arjay Miller Scholar. Mr. Butcher is actively involved in a number of non-profit organizations and currently serves on the Board of Peer Forward, which is committed to enabling broader college access to U.S. high schoolers through positive peer influence.
Brian MittsChief Financial Officer, NexPoint Real Estate Advisors
Brian Mitts, CPA serves numerous roles across the NexPoint platform (NexPoint Real Estate Advisors, L.P. or “NREA”), including: Chief Financial Officer, EVP-Finance and Treasurer of NexPoint Residential Trust, Inc. (NYSE:NXRT); Chief Financial Officer, Executive Vice President- Finance, Secretary and Treasurer of NexPoint Real Estate Finance, Inc. (NYSE:NREF); and Chief Financial Officer and Corporate Secretary of NexPoint Hospitality Trust (TSX.V-NHT.U). Mr. Mitts has served as a member of the board of directors for NXRT and NREF. Mr. Mitts is also a member of the investment committee of NREA, the external advisor of NXRT, NREF and NHT. Mr. Mitts co-founded NREA, as well as NXRT and other real estate businesses with Mr. McGraner and Mr. Dondero. Currently, Mr. Mitts leads NexPoint’s financial reporting and accounting teams and is integral in financing and capital allocation decisions. Prior to co-founding NREA and NXRT, Mr. Mitts was Chief Operations Officer of Highland Funds Asset Management, L.P., the external advisor of open-end and closed-end funds where he managed the operations of these funds and helped develop new products. Mr. Mitts was also a co-founder of NexPoint Advisors, L.P., the parent of NREA. He has worked for NREA or its affiliates since 2007.
Steven LoffmanManaging Director, Raymond James
Steven Loffman joined Raymond James & Associates in 2008 and has spent the majority of his career working with REITs and private real estate companies. At Raymond James, he has managed more than 150 equity transactions that raised over $75 billion in various forms of capital in the public and private markets, and he has represented clients in numerous M&A transactions worth in excess of $10 billion.
Prior to joining Raymond James, Steven worked at Credit Suisse, in the Commercial Mortgage-Backed Securities group and at Apollo Real Estate Advisors in both New York and London. Steven graduated with a J.D. from the University of Miami, School of Law and from George Washington University for his undergraduate studies.