JV plans to buy Orlando single-family homes for short-term rental portfolio – Trade Observer
Two real estate companies have joined forces to build a short-term rental portfolio – with a twist.
Instead of buying apartments or condos, the joint venture including Andes STR and Capital WEG raised a $25 million fund to buy single-family homes and then rent them out as vacation rentals on platforms like Airbnb and VRBO.
The duo are eyeing the Orlando, Florida area to start their investment spree due to its year-round demand for Airbnb-style accommodations, according to the JV. They haven’t made any acquisitions yet, but Andes has identified possible properties, according to a spokesperson.
The median home price in Orlando was $399,000 in June, up 26.7% from a year earlier, the data shows. National Association of Realtors.
“This fund demonstrates that investors want to invest in the asset class and find our turnkey solution, which leverages our award-winning, compelling technology,” Sebastien RivasCEO and Founder of Andes STR, said in a statement.
Andes STR, based in Austin, Texas, is a property management technology company that specializes in facilitating investments in short-term rental properties by arranging financing, setting up legal and accounting services, and then by managing properties while investors receive passive returns. , according to the company. WEG Capital, based in Santiago, Chile, is a financial services, corporate finance advisory and asset management company.
WEG Capital owns several apartment complexes in South Florida and Texas, as well as solar farms in Chile.
Andes STR was founded in 2018 and expects to have up to $100 million in assets under management by the end of 2022, although it’s not immediately clear how many properties it currently manages.
“Since discussions began with Andes in Q3 2021, we have been excited about the STR investment opportunity we could offer our existing and sophisticated clientele,” Guillermo Arriagadapartner of WEG Capital, said in a statement.
The joint venture plans to deploy the funds over the next year, with the investment expected to mature within five years, according to a press release. Investors in the fund are currently leaders in the real estate industry from North and South America and include the founders of Andes STR and the partners of WEG Capital themselves.
Mark Hallum can be reached at [email protected]