BGO Invests $500M in 1Sharpe Capital to Acquire BTR Communities Across the US

BGO, a prominent real estate investor, has ventured into the built-to-rent sector through a strategic partnership with 1Sharpe Capital. The collaboration involves a significant investment of $500 million by BGO, securing an ownership stake in 1Sharpe's single-family rental platform.

Investment Focus and Strategy

The partnership aims to invest in single-family homes tailored for built-to-rent purposes across the United States. Specifically, the focus will be on growth markets characterized by convenient access to amenities, employment hubs, and high-quality educational facilities. Post-acquisition, the management platform of 1Sharpe will be leveraged to enhance the properties' quality of life.

Operational Details and Recent Acquisition

The partnership successfully closed its inaugural deal towards the end of October 2023. The transaction involved the acquisition of a recently constructed 64-unit built-to-rent community situated in the Phoenix metropolitan area. Built in the summer of 2022, the property offers a range of three- and four-bedroom units, complemented by nearby amenities such as restaurants and grocery stores. The partnership's primary focus will be on markets located in the Sun Belt and the western regions of the U.S.

BGO's Entrance into BTR Segment

This venture marks BGO's maiden foray into the built-to-rent single-family rental sector. Previously, BGO predominantly operated in the luxury multifamily segment, managing upscale communities in major cities like New York and Los Angeles.

Previous Partnership and Expansion

In July 2021, BGO initiated a similar strategic partnership with White Oak, aimed at acquiring core and core-plus properties in secondary markets across the United States. The partnership's initial transactions involved the acquisition of two communities situated in the Tampa, Florida, and Nashville, Tennessee, metropolitan areas.