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Law360 (April 27, 2021, 5:13 PM EDT ) Atlas Real Estate has teamed up with DivcoWest to form a $1 billion joint venture that will buy and renovate single-family homes across various western U.S. markets, the companies announced Tuesday.
The companies in their announcement Tuesday said the venture expects to spend $1 billion purchasing and upgrading single-family rental homes in Arizona, Colorado, Idaho, Nevada and Utah. The single-family rental market has seen increased demand over the past year as apartment renters have looked to single-family homes for more living space, less density and more outdoor space amid the COVID-19 pandemic.
Atlas Real Estate is based in Denver.
"DivcoWest's partnership with Atlas is a testament to our decade-plus history as an acquisition partner and the long-standing relationships we have cultivated with institutional investors since our inception," Ryan Boykin, co-founder of Atlas Real Estate, said in a statement Tuesday.
"The start of this new joint venture also points to the strength of the [single-family rental] housing sector and to the full-service real estate investment platform Atlas has created," Boykin added.
DivcoWest is based in San Francisco and has additional offices in New York; Washington, D.C.; Boston; Los Angeles; and Menlo Park. The company invests in office, research and development, multifamily, industrial, retail and lab properties.
A representative for the firm couldn't immediately be reached for comment Tuesday.
DivcoWest, no stranger to joint ventures, has been active on the construction front. The firm is part of a venture with Lincoln Property Co. and Kairoi Residential that's building Sixth and Guadalupe, a residential, office and retail tower in Austin that's the largest tower under construction in Texas, according to the Council on Tall Buildings and Urban Habitat.
The firm also has a joint venture with Dewey Land Co., and that venture is building a 44,605-square-foot project in Burlingame, California. That venture last summer landed $33.8 million in financing for the four-story project, which is located close to the Caltrain station in downtown Burlingame.
Atlas Real Estate was founded in 2013. The company currently manages north of 4,200 residential units.
"The new partnership between Atlas and DivcoWest enables us to live up to our mission as a company: 'To Uplift Humanity Through Real Estate,'" Tony Julianelle, CEO of Atlas Real Estate, said in a statement Tuesday. "The joint venture will function to increase the inventory of single-family rentals in Atlas-managed markets, presenting a tangible opportunity to serve people and create a positive resident experience while helping meet the supply demands by providing high-quality housing."
Counsel information on the latest joint venture was not immediately available Tuesday.
--Editing by Stephen Berg.
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