Opportunistic times means deal opportunities, particularly in the real estate sector. With the demand for new homes and rentals still out there, there is a gap in the market for real estate technology such as Second Avenue Group.
Tampa, Fla-based Second Avenue offers software that is designed to make property investments easier. Its technology also offers property management services. Earlier this week, the target said it received a $250 million investment from Monroe Capital.
Buyers who can’t afford down payments have been looking to rental homes with backyards and extra space going back to the start of the pandemic. That has led to rising rents and increased interest by private equity firms and other investors such as KKR and Blackstone.
“The lack of supply of homes and the increase of interest rates makes this sector attractive for the consumer,” Monroe managing director and co-head of opportunistic credit Kyle Asher tells Mergers & Acquisitions. “Current income, strong total return and natural inflation protection is attractive for capital partners and investors in the space.”
“As the demand for single-family rental assets has grown, the processes for organizations to invest in the market has become more complex and fragmented,” adds Mike Rothman, founder and CEO at Second Avenue. “There are an estimated 17 million single-family rental homes located throughout the United States. Our experienced team, data-rich technology platform and multi-channel, multidisciplinary sourcing capabilities provide investors with a single source of truth and one platform for investment administration and analysis. Streamlining the process for investors and providing premiere rental opportunities for residents.”
– Demitri Diakantonis