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Goldman Sachs-backed companies buy entire Florida community for $45 million

An end to the Sunbelt stay on Wall Street is not in sight.

Two Goldman Sachs-backed companies reportedly gobbled up an entire Florida rental community for a whopping $45 million last month.

Fundrise Interval Fund and Growth eREIT VII have acquired 87 single-family homes in Brevard County as part of an ongoing buying spree in the South.

Fundrise previously snagged a 120-unit development in Pensacola and has poured money into other rental developments in states like South Carolina and Mississippi.

As rents continue to rise and demographic shifts continue, real estate experts say Wall Street’s southern appetite will only increase.

Ken Johnson, a professor of real estate at Florida Atlantic University, said companies are following population trends and investing in previously overlooked regions of the country.

The rental community in Brevard County, Florida
The two companies bought 87 single-family homes in Brevard County for $45 million as part of an ongoing spending spree in the South
WESH2

“You’re seeing more and more of that,” Johnson told the Post. “Florida’s appeal is the same as places like Texas and Tennessee and North Carolina. These are places people are moving to and where we can expect future population growth.”

Florida, he said, has undergone a sea change in recent years, transitioning from an economy geared toward second homes and hospitality to a year-round place of business.

“There’s a restructuring of Florida’s economy going on,” he said.

Some critics have linked Wall Street’s acceptance of single-family homes to unprecedented price increases in recent years.

There are many anecdotes about aspiring homebuyers whose offers are being avalanched by well-funded competitors.

Rents in Florida are up more than 30 percent overall, while other Sunbelt states have seen similar increases.

But Johnson argued that corporate acquisitions remain a “drop in the ocean” of overall real estate transactions across the country.

He claimed that even large-scale corporate acquisitions in concentrated areas do not confer enough “market power” to dictate rental rates.

Other analysts claim that rising mortgage rates will now lead to even higher rents as potential homebuyers choose the sidelines.

https://nypost.com/2022/05/11/goldman-sachs-backed-firms-buy-entire-florida-community-for-45m/ Goldman Sachs-backed companies buy entire Florida community for $45 million

JACLYN DIAZ

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