A solid track record with an unmatched depth of experience in SFR

Opportunistic fund launched in 2022 targeting high teen returns. Fund IV invests in Build-for-Rent single-family home communities across all stages of development (from raw land to finished homes), primarily in the South of the country. The Fund benefits from a seed portfolio of high-quality stabilized assets providing a great inflation hedge, along with an already identified pipeline of deals. The fund invests directly in wholly-owned BFR Communities and also co-invests alongside one of our institutional JV partners, leveraging their scale and experience as one of the largest global real estate investors in the world.

Three institutional JVs since 2019 with two large institutions, including a Global PE player with over 300bn in AUM and a global Investment Manager with over 1 trillion in AUM. The first JV launched in 2019 had an opportunistic strategy focused on Build-for-Rent. The second JV launched in 2021 is a Core + strategy focused on SFR rehab. The third JV launched in 2022 is an opportunistic strategy focused on Build-for-Rent development deals.

Closed in December 2018, SFH Fund III targets both debt and equity investments, primarily in the single-family-homes asset class. As of 12/31/2019, the Fund had deployed $130 million. Fund III offers a combination of credit and equity returns, relying on four pillars: high asset level diversification, inflation protection, strong macro fundamentals, and a solid operational track record. SFH Fund III was realized in December 2021.

In October 2018, Lafayette Longview LLC, a longer-term investment company, was formed via the merger of Fund I and Fund II portfolios. Longview was realized in December 2021

Building on the successful track record of Fund I, Lafayette launched Fund II in 2014 to continue and scale investments in the single family home for rent (SFR) industry.
Fund II deployed approximately $100 million across 750 single-family homes all purchased and renovated one at a time.
Fund II’s portfolio was contributed to Lafayette Longview in October 2018.

In the housing recovery of 2012 and 2013, it was almost impossible to secure bank financing to buy single family homes. Land, by nature, offers leverage in a recovery: land price variations have historically been more pronounced than houses’, amplifying price changes – both up and down – by two or three times. Throughout the downturn, homebuilders focused on survival by generating cash: they sold land and reduced inventory to preserve their balance sheets. The largest homebuilders came back to the market in 2012 but were focused on larger developments. 

Throughout 2013 we acquired approximately 150 lots in residential areas with a focus on smaller developments where we faced little competition. With construction now ramping back up, we are selling these lots and are optimistic about the expected returns for this fund.

In the midst of the subprime crisis, U.S. banks started selling single-family homes at discounted prices while the demand for rental homes remained strong. Lafayette’s founder saw the opportunity and raised capital, mostly from European investors, to acquire, renovate and rent vacant single-family-homes in the south-east regions of the US. Thus was Lafayette started. 

Fund I comprises close to 600 houses across eight markets. The team managed to stabilize the portfolio at a 95% occupancy level within 18 months, which allowed for debt financing and the return of two–thirds of investors’ original capital in February 2014. 

In October 2018 Lafayette Longview LLC, a longer-term investment vehicle, was formed via the merger of the portfolios of Funds I and II, and the Fund’s existing debt was refinanced by a large US insurance company.