Goldman Sachs-backed firms buy entire Florida community for $45 million


There’s no end in sight for Wall Street’s Sunbelt stay.

A pair of Goldman Sachs-backed firms gobbled up an entire Florida rental home community last month for a whopping $45 million, according to reports.

Fundrise Interval Fund and Growth eREIT VII have acquired 87 single-family properties in Brevard County as part of an ongoing southern spending spree.

Fundrise previously snatched up a 120-unit development in Pensacola and poured money into other rental developments in states like South Carolina and Mississippi.

As rents continue to soar and demographic shifts continue, real estate experts said Wall Street’s southern appetite will only intensify.

Ken Johnson, a real estate professor at Florida Atlantic University, said companies are following demographic trends and investing in previously overlooked parts of the country.

The two companies acquired 87 single-family properties in Brevard County for $45 million as part of an ongoing southern spending spree.
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“You see more and more of that,” Johnson told the Post. “Florida’s appeal is the same as places like Texas, Tennessee and North Carolina. These are places where people move and where we can expect to see future increases in population.

Florida, he said, has undergone a fundamental shift in recent years, shifting from an economy centered around second homes and hospitality to a year-round place of business.

“There’s a reorganization of Florida’s economy going on,” he said.

Some critics have correlated Wall Street’s embrace of single-family rental homes with unprecedented price increases in recent years.

Anecdotes abound about aspiring homebuyers whose offers are swallowed up by deep-pocketed competing companies.

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

But Johnson argued that the corporate purchases remain a “drop in the ocean” of overall real estate transactions nationwide.

He claimed that even large-scale corporate purchases in concentrated areas do not confer enough “market power” to dictate rental prices.

Other analysts argue that rising mortgage rates will now drive even higher rents as potential buyers opt for the sidelines.

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