Trust leads to confident investment decisions. As a trusted name in the market, Amherst Capital Management is offering clients and investors new opportunities to invest in the world’s largest asset class.
Valued at approximately USD35 trillion, U.S. housing is the world’s largest asset class1. Just one class of housing – single-family rental properties – is comparable in value to many large income-generating commercial real estate sectors, such as offices, retail and hotels, that have typically been top-of-mind for institutional investors2. The team at Amherst Capital Management (“Amherst Capital”), a U.S. real estate investment specialist and BNY Mellon boutique, has pioneered an innovative investment strategy, built upon a unique data and analytics platform, to capitalize on a large-scale shift in housing from ownership to rental: the increasing long-term, institutional ownership of single-family rental assets. As the only BNY Mellon investment boutique offering a single-family equity strategy, Amherst Capital is forging a new institutional asset class.
While institutional ownership of single-family rental assets is still fairly small, at an estimated one to two percent, a confluence of factors and forces – such as demographic changes, continued tight credit conditions limiting mortgage availability and the risk-adjusted return profile of single-family rental assets – are expected to drive growing institutional ownership of these assets. Amherst Capital’s strategy is backed by exclusive access to 20 years of data sets and innovative analytics through Amherst InsightLabs3 (“AIL”). Moreover, evidence-based insights help engender credibility and investor confidence in this new institutional asset class. The AIL technology platform helps the Amherst Capital team “see around corners,” anticipate market trends and identify differentiated investment opportunities for institutional clients. Amherst Capital’s approach to investing in single-family equity is driven by data and analytics that provide a unique view into the fundamentals driving asset performance.
“The housing market is fundamentally changing and we see an exciting opportunity in single-family equity,” said Sandeep Bordia, Head of Research and Analytics, Amherst Capital Management. “As institutional ownership grows, we believe investors will increasingly recognize the opportunities of these investments. With the trust Amherst Capital has built in the marketplace and our differentiated strategy, technology edge and strategic approach to market selection, we can help end-investors tap into this asset class with the benefit of greater analytical insights and focused real estate expertise.”
1 Source: U.S. Census Bureau, Amherst Capital estimates based on U.S. Census Bureau surveys as of Q2 2016. Note: Based on 2014 American Community Survey 1-year estimates and scaled up to the 2016Q2 HVS/CPS survey. For illustrative purposes only.
2 Source: Single family values based on AIL AVM; Office/Retail and Industrial based on Costar data as of 2016 Q2 and “Slicing, Dicing and Scoping the size of the US Commercial Real Estate Market”, by Andrew Florence, Norm Miller and Ruijue Peng of Costar/PPR; multi-family based on National Multi-family Housing Council and Moody’s CPPI as of 2015; Hospitality based on RCA and STR Global estimates as of 8/31/2016.
3 Amherst Capital has an exclusive license with AIL in the asset management industry. AIL is an affiliate of Amherst Holdings, LLC.