Tampa-based Company Expands Its Reach with Strategic Acquisition
tampa, FL – A significant move in the real estate market is underway as Second Avenue, a growing full-service single-family rental platform, has announced its acquisition of Pacific Oak Residential, Inc. This Jacksonville-based company, which specializes in property management, oversees a portfolio of 2,110 single-family homes valued at approximately $400 million.
This transaction marks a major milestone for Second Avenue, as it expands its managed properties to a total of 5,300 homes, elevating its overall assets to an impressive $1.5 billion.
Expanding Presence Across the U.S.
The acquisition serves to broaden Second Avenue’s geographic footprint, adding six new states to its operational reach, bringing the total to 21 states nationwide. The Pacific Oak portfolio is particularly notable for its presence across various regions, including numerous states in the Midwest, as well as areas in Texas and Oklahoma.
The strategic fit of Pacific Oak Residential’s properties complements Second Avenue’s existing inventory, showcasing the company’s capability to provide institutional-quality management along with optimized financial returns.
Collaborative Success
Michael Gough, President of Pacific Oak Residential, voiced the importance of this acquisition, calling it a continuation of a “trusted partnership.” He highlighted a past success in their collaboration where Second Avenue improved the net operating income (NOI) by an impressive 30% within just seven months for a smaller portfolio they previously managed together. This achievement underscores Second Avenue’s operational expertise and potential for value addition to single-family rentals.
Looking Ahead: Major Growth Plans
As Second Avenue moves into the new year, ambitious plans are in motion. According to Co-Founder and CEO Michael Rothman, the company aims to acquire 2,000 additional single-family homes in the near future, supported by a solid pipeline of future property management opportunities. Rothman stated, “With a 188% compound annual growth rate (CAGR) in home count growth since 2019, we are on track to manage 10,000 homes by the end of 2026, positioning us among the top 10 single-family rental operators in the country.”
Company Background
Founded in 2019 and headquartered in Tampa, Second Avenue positions itself as a provider of high-quality, professionally managed rental homes targeted at today’s families. The company utilizes a proprietary, technology-driven platform that offers end-to-end solutions for home buyers, sellers, renters, and investors alike. This platform efficiently integrates all facets of single-family rental operations, ensuring a smooth onboarding process and effective property management.
Conclusion
The acquisition of Pacific Oak Residential marks a critical growth point for Second Avenue, enhancing its presence in key markets and reaffirming its commitment to delivering top-tier rental services. As the company gears up for the future, it seems poised to make a significant impact in the single-family rental landscape across the United States.
