MIAMI, FL - Transcendent Electra, a new joint venture between single-family rental (SFR) platform Transcendent Investment Management (TIM), and longtime multifamily owner/operator Electra America, announces that it is adding 1,889 new single-family homes to its portfolio, with $496 million in contract process and closing and another $ 1 billion in the pipeline.
The properties are brand new single-family homes and townhomes, purchased directly from homebuilders, scattered throughout the following markets: Birmingham and Huntsville, Ala.; Florida; Savannah and Atlanta, Ga.; North Carolina and South Carolina; Nashville, Tenn.; and Dallas, Houston, San Antonio and Austin, Tex.
This marks Transcendent Electra’s first significant acquisition since launching in February.
“Single-family rentals continue to outperform other asset types across many metro markets,” said Jordan Kavana, CEO of Transcendent Electra. “Our longstanding relationships with some of the nation’s top homebuilders have allowed us to locate product in markets where demand exceeds supply, and we’re able to leverage Electra’s multifamily expertise and presence in those markets to reach prospective residents and capitalize on economies of scale.”
Transcendent Electra was established in early 2021 as a joint venture between long-time SFR player TIM, and Electra America, one of the Top 50 largest apartment owners on the National Multifamily Housing Council list. The investment platform aims to acquire or develop approximately $3 billion in SFR housing over the next three years, with a focus on new-build homes in the $175,000 to $300,000 price range, where average rent will be $1,500 to $2,800 per month.
Transcendent Electra’s other competitive advantage is CleanLiving Health and Wellness™, TIM’s new trademarked collection of programs for residents offering education, products and services designed to support good health, well-being, and mindfulness.
“In the wake of a pandemic, and in an environment where a lot of people are dealing with stress and isolation, there is significant demand for wellness, prevention and resilience services that residents can access from the comfort of their homes,” added Kavana. “Through a custom-built app just for Transcendent Electra/TIM residents, we can deliver programs and tools that help our residents with everything from fitness and nutrition goals to cultivating better sleep habits – all in a cost-effective manner that makes wellness both accessible and more equitable.”
About Transcendent Investment Management (TIM): TIM has significant experience in the Single-Family Residential asset class as one of the first large scale investors, dating back to the great recession when TIM purchased over 6,000 homes at deep discounts via multiple channels including auction, tax lien foreclosures and REO purchases. In 2014, sensing a mature and overbought market, TIM shifted its strategy from buying via its traditional channels to bulk buying new and warrantied units at discounts from large US homebuilders. Based in Miami, TIM has completed over $1 billion in real estate transactions and has expertise in the major Sunbelt markets.
About Electra America: Electra America is a real estate private equity firm focused on value-add and opportunistic investments in the U.S. Sunbelt markets. With initial capital commitments totaling approximately $2.5 billion across multiple funds managed by the firm and its affiliates, Electra America’s portfolio encompasses more than $6 billion in commercial real estate property holdings and debt in the multifamily, hospitality and single-family rental home sectors. Leveraging decades of expertise, Electra America is committed to transparency, the alignment of interests between sponsors and investors, and delivering superior risk-adjusted returns to its investors and partners. Electra America is a partnership between The Lubeck Family and a subsidiary of Electra Real Estate Ltd., an Israeli company founded in 1972 and publicly traded on the Tel Aviv stock exchange (TLV: ELCRE). For more information, visit www.electramerica.com