In another sign of consolidation in the single-family rental industry, Agoura Hills-based American Homes 4 Rent said Tuesday that it's buying smaller Beazer Pre-Owned Rental Homes Inc.
The deal, which is worth about $263 million in stock, cash and debt, will add roughly 1,300 houses to American Homes 4 Rent's portfolio of more than 25,000 in 22 states. It includes some houses in Riverside and San Bernardino counties; despite being based in Southern California, American Homes 4 Rent did not own houses here prior to the deal, focusing on less expensive markets.
American Homes 4 Rent is one of the biggest players in the burgeoning industry of renting single-family homes en masse. A collection of private equity firms, real estate trusts and other investment groups have spent as much as $20 billion buying up to 200,000 houses nationwide in the last two years.
In recent months, though, large buyers like Blackstone Group have slowed their pace of acquisitions -- especially in pricier markets like coastal California -- to focus on managing their portfolio and issuing bonds to raise more capital. Meanwhile, several smaller players, such as Beazer, have sold their portfolios and exited the business.