Mynd Management is gearing up to dominate the single-family rental market with help from one major investor.
Thanks to Invesco Real Estate, Mynd will receive $5 billion to purchase 20,000 single-family rental homes in the U.S. over the next three years, Bloomberg News first reported.
The partnership will make Mynd one of the largest purchasers and managers of those homes in the U.S., the company said in a press release. The company will focus on buying for Invesco as it builds out its management platform of more than 7,000 homes across 25 cities.
Mynd operates a platform that aims to democratize real estate access and help investors buy, sell or manage single-family rentals across the country.
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Invesco is also leading a $40 million financing round for Mynd, which will be spent on technology and acquisitions, according to Bloomberg News.
Mynd has been acquiring about 50 homes per month and hopes to up that number to 1,000 by next year, the publication reported.
The partnership comes at a time when more than half of the country’s multifamily properties are owned by institutional investors. Meanwhile, ownership of single-family rentals makes up 2-3 percent, Bloomberg News reported.
Traditional commercial real estate investors whose key strategy was to invest in multifamily have since focused on single-family rentals, the publication reported.
“We’re seeing the market flooded with institutional capital,” Mynd CEO and co-founder Doug Brien told the publication.
This will make it more competitive for Mynd to find those properties, but its data-driven technology should give it a boost when it comes to making offers across the country, the publication reported.
Thomvest, Common Fund, Squarepoint and other investors also participated in the financing round, valuing Mynd at $300 million.
[Bloomberg News] — Cordilia James