In a significant development, the nation’s leading single-family rental landlord, Invitation Homes, has inked a deal with Nuveen, leading to the expansion of its managed properties across the United States. This arrangement marks a notable shift for Nuveen, the investment management arm of TIAA, as it steps back from overseeing its single-family rental business.
According to a spokesperson from Invitation Homes, Nuveen has delegated the management responsibilities of approximately 3,000 of its single-family rentals to Dallas-based Invitation Homes, while maintaining ownership of the properties. This strategic move diverges from Nuveen’s previous commitment in October 2020, wherein it had pledged up to $400 million to bolster its Sparrow platform, initiating its venture into the single-family rental sector within the Sun Belt region.
The inclusion of Nuveen’s single-family rental portfolio fortifies Invitation Homes’ expanding third-party management platform. The company has conveyed its intentions to investors to augment its management services to external entities throughout this year, following a recent agreement with an undisclosed ownership consortium to manage roughly 14,000 single-family rental residences.
Invitation Homes expressed its role as a vital participant in the nation’s housing market, offering choice, flexibility, and professional services to an increasing number of households opting for leasing over homeownership. The company spokesperson highlighted Invitation Homes’ commitment to delivering professional property and asset management services, overseeing approximately 88,000 wholly owned and joint venture homes, alongside approximately 17,000 homes owned by third parties.
Interestingly, Invitation Homes’ collaboration with Nuveen and TIAA isn’t novel. The single-family rental giant expanded its footprint in Dallas last year, securing a lease for approximately 50,000 square feet of office space within a TIAA-owned building. This move is part of Invitation Homes’ strategy to provide professional management services to large portfolio owners, as emphasized by CEO Dallas Tanner in January. Tanner underscored that this strategic shift aligns with the company’s longstanding trajectory and augments its market presence, anticipating further announcements of third-party management agreements throughout the year.
The additional single-family rentals from Nuveen’s portfolio complement Invitation Homes’ existing footprint in key Sun Belt markets, including Phoenix, Atlanta, Nashville, Jacksonville, Orlando, Tampa, Charlotte, Raleigh-Durham, Dallas-Fort Worth, and San Antonio, as detailed on Sparrow’s website.