JLL (NYSE: JLL) announced that it will be making an investment in single-family proptech start-up Roofstock. As part of the deal, Roofstock will be acquiring Stessa, an asset management software platform for single-family investors.
The single-family residential market
The single-family residential market has been hot to say the least. Earlier this year, we saw powerhouse Blackstone (NYSE: BX) signal that it was getting back into the single-family game when it announced a $1.6 billion acquisition of home design firm Logic Group Holdings.
And now another real estate dynamo, JLL, is betting big on the future of single-family.
More on Roofstock
Roofstock is a marketplace for investing in the single-family rental home sector. Since its founding in 2015, Roofstock has facilitated over $2 billion in transaction volume. Roofstock states that their platform "lets everyone from first-time investors to global asset managers evaluate, purchase, and own residential investment properties with confidence from anywhere in the world."
JLL will use Roofstock to bolster its single-family investment opportunities for clients. Co-CEO of JLL Technologies Yishai Lerner explained the decision, saying, "We are excited by Roofstock's scalable, data-driven platform servicing both retail and enterprise SFR (single-family residential) clients as well as the deeply accomplished and experienced team. We see a strategic investment coupled with a commercial partnership as the best approach to offer state-of-the-art services to our investors seeking SFR exposure."
How Stessa fits in
Stessa is a back-office software platform designed specifically for managing real estate investments. The company has over 170,000 properties listed, representing over $45 billion in assets.
A marriage with Roofstock makes a lot of sense because it connects an investment marketplace with a back-office management system specifically designed for the industry. Roofstock's CEO Gary Beasley explained, "We are also thrilled to welcome the talented Stessa team to Roofstock and are excited to integrate their asset management and accounting software into our retail product offerings. The relationship with JLL directly supports our efforts to make real estate investing more seamless and accessible."
The Millionacres bottom line
Single-family rentals continue to gain interest from institutional investors. Back In 2012, Warren Buffett famously said that he would buy up "a couple hundred thousand" single-family homes if he could. Proptech firms like Roofstock are taking us to a place where that doesn't just sound like hyperbole.