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Tricon Capital Group is focusing on U.S. real estate. The company has become the third-largest publicly listed landlord of single-family rentals in America's Sunbelt.
Using its proprietary software, Tricon put in offers on 1,500 listings last quarter, buying roughly 400. The firm anticipates purchasing 600 more this quarter, and aims to double its assets to $10 billion by 2023, Bloomberg reports. CEO Gary Berman says demand in this sector, "feels insatiable. 16 million American households rent single-family homes. That’s bigger than the entire Canadian housing market.” Berman adds that there is renting is no longer taboo after the housing crisis, and newer technology allows property management and purchasing at scale. "This is a technology business."
Tricon targets workforce housing for police officers, teachers and the like that rents for an average $1,300 per month. That compares with an average of about $1,700 for Invitation Homes. The firm is also trying to draw more institutional investment into its other businesses, which include apartment development, land acquisition and home building. It has a development pipeline of 2,500 apartment rental units in Toronto, which will cost about $1.2 billion to construct.
