Through a new joint venture, Invitation Homes is looking to scoop up properties aimed at high-end renters.

The Dallas-based rental giant is teaming up with Boston property investment firm Rockpoint Group, which also has local offices, to commit $750 million, including debt, to acquire and renovate expensive single-family homes for rental.

“This new JV will enable us to expand our growth opportunities and serve the growing number of renters by choice who place a high premium on location,” said Dallas Tanner, president and CEO at Invitation, in a statement. “We view this as complementary to our established core investment strategy that remains the focus of our on-balance sheet investment. In addition, we’re thrilled to pursue this new JV alongside Rockpoint, with whom we have developed a strong and trusting partnership through our existing joint venture.”

Searching for ‘premium’ locations

For its part in the joint venture, Invitation will provide investments, asset management, and property management services, while earning fees through those services, in addition to the opportunity to earn promoted interest, based on certain performance milestones.

The companies said they plan to target single-family homes in “premium neighborhoods,” with price points and rents that average 30% to 60% higher than those they typically acquire. They plan to look at submarkets including Texas, Florida, and parts of the Western and Southeastern U.S.

The joint venture will be fueled by a total equity commitment of $300 million, with $50 million coming from Invitation and $250 million from Rockpoint.

“Together we’re focused on creating high-quality attainable housing to meet the growing demand for single-family rentals,” said Tom Gilbane, managing member at Rockpoint, in a statement. “We feel this unique strategy is complementary to our long-term focus on creating housing that serves our customers and betters our communities.”

Follows a $1 billion 2020 joint venture

Invitation and Rockpoint have previously worked together on another $1 billion joint venture, formed in 2020, aimed at buying, renovating, and renting suburban single-family homes in high-growth areas like Dallas, South Florida, and Seattle. Invitation also formed a joint venture last year with Atlanta homebuilder PulteGroup to purchase 7,500 PulteGroup-built homes over the next five years, adding to the around 80,000 homes Invitation has nationwide.

Invitation has also been investing in technology. Last month, it joined Regis Group and Fifth Wall in providing $250 million in equity to launch Pathway Homes, a homebuying platform that helps customers lease a house, with the option to buy at a later date.

According to the company, Invitation has more than 1,100 employees and had more than $1.8 billion in revenue in 2020.

“We saw an opportunity a decade ago to revolutionize the home rental industry and, now more than ever, believe that the single-family rental model is an advantage for the growing share of Americans who are opting not to buy a house,” Tanner said in February.

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