Two Institutional Investors Merge, Prepping for Rising Rents

Further indicating the trend of rising rents, large institutional investors Starwood Waypoint Residential Trust and Colony American Homes Inc. announced their merger Sept. 21, 2015.

 The deal values Colony at roughly $1.5 billion taking into account Starwood Waypoint’s closing share price on Friday, Sept. 18. The deal is expected to close in the first quarter of next year.  

The two companies currently own a combined 30,000 homes valued at $8 million, the Wall Street Journal reported Monday. It was previously reported that all institutional investors combined own approximately 200,000 of the 15.3 million single-family rental houses in the U.S.  

Starwood Waypoint has recently stated that they use algorithms to decide which areas, neighborhoods and even individual homes to target to gain an advantage as they compete with small, local residential investors.