By Angela Gonzales | Phoenix Business Journal
Two out-of-state real estate firms formed a $1 billion joint venture to acquire and renovate single-family rental homes across the western United States, with big plans for Arizona.
Denver-based Atlas Real Estate and San Francisco-based DivcoWest are targeting high-growth states, including Arizona, Colorado, Idaho, Nevada and Utah.
Vincent Deorio, vice president of corporate development for Atlas Real Estate, said he’s prepared to acquire anywhere from 500 to 1,000 single-family homes in the metro Phoenix and Tucson markets. Plans call for renovating and renting them out.
The acquisition of 300 homes at an average sale price of $350,000 would mean the joint venture is prepared to invest at least $175 million in Arizona, he said.
Deorio said his goal is to buy 30 homes a month in Arizona, but he would ramp up that number over time.
“We may target 500 but we might end up with somewhere between 500 and 1,000 homes,” he said.
DivcoWest will invest $250 million of equity in single-family rentals.
“We plan to layer on debt to get us to $1 billion in this space,” Deorio said. “Of that, maybe $150 million would be for Arizona on the conservative side.”
Deorio said he’s bullish on Arizona.
“We love the market,” he said.
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