(Bloomberg)—The Canada Pension Plan Investment Board is partnering with homebuilder Lenar Corp. A housing shortage has caused an increase in rents in a $979 million joint venture to build apartment buildings in the US.
According to a statement Tuesday, the pension fund, which is increasingly targeting American rental housing, will own 96% of the venture, while Lenore will take the balance.
“This investment is a great opportunity to meet the strong demand for high-quality multifamily housing,” said Peter Bailon, Canada Pension Plan’s Head of Global Real Estate, in the statement.
Investing in the US in the form of both rent and home prices comes amid a paucity of available properties. It is the third partnership from Canada’s pension plan to build rental housing in the US in the past year as this space-pushing institution joins the influx of capital.
According to the statement, the partnership with Lenner will begin with a total of 1,371 apartments across five properties — one in Boston, one in Miami and three in Denver.
“This joint venture specifically targets high-growth markets where the supply of housing has not kept pace with the demand for rent,” said Todd Farrell, president of Lenar’s Multifamily Unit.
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