Goldman Sachs Ventures Drops $45M on Florida Rental Homes - The Jewish Voice
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Monday, July 4, 2022

Goldman Sachs Ventures Drops $45M on Florida Rental Homes

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Edited by: TJVNews.com

Because rental apartments in Florida have become a rare commodity due to the massive influx of immigration to the Sunshine State, it appears that big money Wall Street entities are getting in on the act in terms of capitalizing on the real estate explosion.

According to a recent New York Post report, last month two ventures backed by Goldman Sachs plunked down a cool $45 million for an entire rental home community in Florida.

The report indicated that as part of an ongoing buying spree of rental homes in Florida, Fundrise Interval Fund and Growth eREIT VII bought 87 single-family properties in Brevard County.

It was also reported that Fundrise has been buying rental developments in South Carolina and Mississippi. The Post reported that in the past Fundrise purchased a 120-unit development in Pensacola.

Real estate experts have told the Post that Wall Street’s rental home buying spree in the southern portion of the country will increase exponentially because of continuing shifts in demographics and soaring rent prices.

Speaking to the Post, Ken Johnson, professor of real estate at Florida Atlantic University, said firms are following trends in demographics in parts of the country that were disregarded in the past.

“You are seeing more and more of this,” Johnson told The Post. “The attraction of Florida is the same as places like Texas and Tennessee and North Carolina. These are places people are moving to and where we can expect to see future increases in population.”

The Post reported that Florida has transitioned from an economy that had centered around the hospitality industry to a year-round place of business.

Johnson said: “There is a reorganization of Florida’s economy taking place.”

Some critics have correlated Wall Street’s embrace of single-family rental homes with unprecedented price increases over the past several years, according to the Post report.

The Post also reported that stories have been circulating that interested homebuyers were having their bids on property nixed by exceptionally wealthy corporate competitors.

Rents have catapulted in Florida by more than 30 percent overall while other Sunbelt states have seen similar spikes in rent prices, according to the Post report.

Johnson, however, told the Post that purchases of rental property made by corporate entities were a “drop in the bucket” of overall home transactions throughout the country.

He asserted that even large-scale corporate purchases in concentrated areas do not confer enough “market power” to dictate rental prices.

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