Goldman Sachs-backed firm buys entire Florida community for $45 million

Wall Street’s sojourn in the Sunbelt has no end.

Last month, two Goldman Sachs-backed businesses reportedly bought an entire rental housing community in Florida for $45 million.

Fundrise Interval Fund and Growth eREIT VII purchased 87 single-family homes in Brevard County as part of an ongoing southern consumer boom.

Fundrise previously snapped up a 120-unit development in Pensacola and has been pouring money into other rental developments in states including South Carolina and Mississippi.

As rents continue to soar and demographic shifts continue, Wall Street’s appetite for the South will only grow, real estate experts say.

Companies are paying attention to demographic trends and investing in previously overlooked areas of the country, said Ken Johnson, a real estate professor at Florida Atlantic University.

The two joint ventures acquired 87 single-family homes in Brevard County for $45 million as part of an ongoing southern spending frenzy

“You’re seeing more and more,” Johnson told The Post. “Florida has the same appeal as places like Texas, Tennessee and North Carolina. Those are the places people are moving to, and we can expect to see future population growth.”

Florida has undergone a fundamental shift in recent years, he said, from an economy centered on second homes and hotels to one that is open year-round.

“Florida’s economy is restructuring,” he said.

Some critics have linked Wall Street’s embrace of single-family rentals to unprecedented price increases over the past few years.

Anecdotes abound of bids from aspiring homebuyers being swept away by deep-pocketed corporate rival Avalanche.

Florida rents rose more than 30% overall, while other Sunbelt states saw similar increases.

But Johnson believes business purchases remain a “drop in the bucket” of overall housing transactions across the country.

He asserts that even large-scale corporate purchases in concentrated areas do not have sufficient “market power” to determine rental prices.

Other analysts believe higher mortgage rates will now spur higher rents as potential homebuyers choose to wait and see.

US News.

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