AgentMarkets & Economy

Invitation Homes, an institutional single-family rental investor, goes public

Giant real estate investor bought thousands of homes during housing slump

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Invitation Homes -- a real estate investment firm that owns close to 50,000 single-family rental homes  -- raised $1.54 billion in an initial public offering, with the company's valuation rising to over $6 billion today, according to media reports. The IPO underlines Wall Street's new role as a national landlord and comes shortly after the government signaled plans to begin subsidizing the institutionalized single-family rental market  -- by agreeing to back some debt from Invitation Homes. Invitation Homes, which is operated by private-equity giant Blackstone, joins a handful of other Wall Street-backed real estate investors that sell shares to the public, including America Homes 4 Rent and Colony Starwood Homes. These three companies alone own about 130,000 homes, according to Gary Beasley, CEO of single-family-rental marketplace Roofstock and the former co-CEO of Starwood Waypoint Residential Trust. (Starwood Waypoint Residential Trust merged with Colony Ameri...