A new asset management firm announced plans to invest over $1 billion into distressed properties and convert them into rental homes.
Sylvan Road Capital, LLC, which launched Wednesday, was co-founded by a former head of U.S. housing strategy at Morgan Stanley, Oliver Chang.
During a time when home values remain low and rent prices are increasing, the company plans to seize the opportunities available in the $3 trillion single-family rental market.
According to a company release, the $1 billion will be invested over the next two years, and Sylvan Road will acquire over $300 million in distressed single-family homes through initial capital from an unnamed private equity firm.
Chang’s partners in the firm include three principals at Delmar Realty Advisors – Robert Lee, Sarah Lee, and Gavin Kleinknecht.
“America is moving toward a Rentership Society, and I believe the opportunity to purchase and professionally manage single-family rental homes represents one of the most compelling investment opportunities across all asset classes,” said Chang. “My partners have been in the single-family real estate business for nearly two decades and have built a best-in-class acquisition, renovation and management platform specifically designed for these properties.”
As a trio, Chang’s partners have collectively built over $100 million in new single-family homes and raised over $1 billion for real estate investment funds, according to the release.
Chang began his career at Morgan Stanley in 2005, and in May, Reuters reported Chang had submitted his resignation letter to pursue his own buy-to-rent housing fund.
Sylvan Road Capital is headquartered in Atlanta, Georgia and has offices in San Francisco.