Chicago businesses team up to build suburban communities
CHICAGO – Core Spaces, a Chicago-based residential real estate developer, and Harrison Street, an investment management firm focused exclusively on alternative real estate assets, said they have formed a joint venture that will invest up to $ 1.5 billion for develop single family homes rental communities of homes in suburban areas.
The newly formed partnership, known as JV, will continue investing in purpose-built communities located in high-growth suburban markets driven by high demand, such as prominent school districts, the companies said. . The company’s “built-to-lease” pipeline currently has total capital of approximately $ 2.5 billion and more than 6,500 units in markets such as Austin, Denver, Dallas, Orlando and Nashville.
“Affordability challenges in the US housing market and changes in lifestyle preferences are driving demand for single-family rentals and we believe our progressive design and hospitality-driven approach will differentiate our communities (build to rent). ) in the single-family rental market. “said Dan Goldberg, president of Core Spaces.
Chicago-based Harrison Street’s approach to investing in student housing communities globally has been instrumental in establishing its JV partnership with Core Spaces. Since 2007, the company has developed and acquired more than 27 student housing communities for construction, comprising 19,000 beds at a total cost of approximately $ 1.3 billion.
To date, Harrison Street and Core Spaces have nine rental construction projects underway in various stages of development and have an established track record of partnering on student housing transactions at major US universities, including the University of the Illinois to Urbana – Champaign, University of California – Berkeley, University of South Florida, Georgia Institute of Technology, University of Oklahoma and University of Auburn.