Crescent Communities and Heitman Launch New $240 Million Joint Venture for Housing Development

Crescent Communities and Heitman's New Joint Venture

Crescent Communities, a prominent player in real estate development, in collaboration with Heitman, a well-regarded investment management firm, has officially announced the launch of their second joint venture. This venture marks a significant increase in their partnership's scope, with an initial commitment of $240 million aimed at expanding their footprint in the single-family build-to-rent space across various strategic markets. The venture has the potential to grow to $340 million, underscoring their ambition to capitalize on emerging housing demands in the United States.

This new venture builds upon the successful foundation laid by their first partnership, which commenced in 2024 with an initial investment of $235 million. The first joint venture financed six communities spread across appealing regions of North Carolina, Georgia, Florida, Tennessee, Texas, and Arizona, including notable developments such as HARMON Ascend in Phoenix and HARMON Jefferson Village in Greensboro. With their sights set on growth, this second venture aims to establish new developments in the same markets alongside new opportunities in Colorado, as Crescent Communities strategically positions itself in high-demand housing markets.

The articulation of this endeavor reveals that Crescent Communities is more than just a developer; they are a leader in the evolving landscape of rental housing. According to Tony Chen, Senior Managing Director of the Single-Family Build-to-Rent sector at Crescent, the advancement into a second joint venture is a testament to the team's capacity to pinpoint high-quality development prospects amidst a rising sector. “As our first joint venture portfolio nears its community openings, we are excited to deepen our partnership with Heitman to grow the HARMON brand, further solidifying Crescent's place as a leading entity in the single-family build-to-rent marketplace,” Chen remarked.

The developments under this new collaboration will carry the HARMON by Crescent Communities brand. They are projected to offer residents numerous benefits associated with single-family homes, including enhanced privacy, more living space, and an inviting community feel, while alleviating the traditional burdens tied to property ownership. Innovations such as energy-efficient constructions and thoughtfully designed communal amenities will help foster a sense of local connection and pride among residents.

Heitman’s Managing Director, Ashish Karamchandani, highlighted that the decision to embark on this second venture stems from Crescent's impressive achievements in recognizing and successfully implementing high-quality developmental chances. Acknowledging the ongoing shifts in demographics and affordability that drive the rental market, Heitman sees Crescent's HARMON portfolio as suitably equipped to lead in this fast-evolving space.

As part of their broader strategy, Crescent Communities continues to witness considerable growth, thanks to an impressive $7.2 billion dedicated to various multifamily and commercial projects currently under construction or in the planning stages. Their extensive portfolio boasts 15,300 multifamily units, 58,000 square feet of retail space, alongside 7.5 million square feet designated for industrial and office facilities, which merge focus on environmental sustainability with community development.

Crescent Communities stands as a well-recognized leader in the field, having earned numerous certifications including LEED and NGBS (National Green Building Standard). Having built a reputation for developing distinctive multipurpose communities in some of the nation's fastest-growing markets since 1963, they continue to evolve with the community’s needs.

With sustainable practices and a commitment to building healthy living environments, the new venture between Crescent Communities and Heitman illustrates a promising future for the single-family build-to-rent sector, paving the way for both investment stability and community growth in the American housing landscape.