Divvy Homes, the rental housing company valued at $2 billion in a 2021 Series D funding round, endured several layoffs before launching a subscription-based credit-building service last year.
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The struggling rental housing company Davie Homes is reportedly set to be acquired by Brookfield Maymont Homes, the single-family rental arm of Brookfield Properties.
Neither Davie Homes, Maymont Homes nor Brookfield Properties responded to requests for comment on news that a sale was in the works. Fast Company reported on Friday, citing anonymous sources, that Divi Homes was acquired in a “fire sale.”
Maymont Homes, trading name BSFR Property Management LLC and based in Charleston, South Carolina, acquires, renovates and manages more than 10,000 single-family rental homes throughout the Southeast and Midwest.
David Todd, CEO of Maymont Homes, is also a managing director in Brookfield Asset Management’s real estate group. Prior to joining Brookfield in 2017, Todd was an executive at PGIM Real Estate.
On Monday, Divvy’s website continued to facilitate home searches in 19 markets in nine states: Arizona, Colorado, Florida, Georgia, Minnesota, Missouri, Ohio, Tennessee and Texas.
News of the pending deal was first reported by Fast Company’s Ainsley Harris. In an October 2022 research article, Harris said Devey is among the top 10 net acquirers of single-family homes in the U.S. and is “perhaps more insulated from the ups and downs of the simple housing market than its Silicon Valley peers.” reported. Reason: Its business model does not rely on home ownership as a result. ”
But after analyzing Divvy’s advertised rents for 18,000 properties in 19 markets, Harris concluded that the company charges higher rents than other landlords in some markets. Ta.
The New York Times reported in an August 1, 2023 article that Divi owns 7,000 homes and that “more renters are struggling to pay, and Divi is filing more eviction notices.” We are being forced to do so.”
Devey told the New York Times that customers are only evicted as a last resort and that not all eviction notices result in a completed eviction.
Adena Hefetz
“With mortgage rates at an all-time high, our mission is more important than ever,” Divvy co-founder and CEO Adena Hefets said in a statement at the time. told the New York Times. “Divvy gives renters ownership. They have the option to choose a home, accumulate savings, and make it their forever home.”
Founded in 2017, Divvy raised $30 million in a Series A funding round in 2018, followed by $43 million in Series B in 2019 and $110 million in Series C in 2021. I did. Longtime supporters include Andreessen Horowitz, Tiger Global Management, Caffeinated Capital and homebuilder Lennar.
However, after announcing a $200 million Series D funding round in summer 2021 that valued the company at $2 billion, Davy faced housing market headwinds in the form of rising home prices and mortgage rates. .
Divvy laid off 12 percent of its approximately 330 employees in the fall of 2022, with a second round of layoffs in February 2023. In September 2023, Divvy distributed pink slips to 95 employees in 21 states. Several senior managers at our San Francisco headquarters.
Last year, Divvy Homes launched its “home preparation product” DivvyUp. It aims to help prospective homebuyers who pay a monthly subscription fee of $14.95 improve their credit scores, reduce debt, and save for a home purchase.
Sale-leaseback platform EasyKnock faces consumer lawsuits and attorney general enforcement actions in multiple states; It closed in December.
The Connecticut Attorney General’s Office alleged that the company targeted “cash-strapped homeowners in need of loans who are ineligible for loans due to poor credit scores or excessive debt.”
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