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SPAC Deal Tests Investors’ Zeal for Single-Family Rentals

Appreciate is merging with a Tom Hennessy-tied blank-check company in the latest bet on single-family rentals. 

U.S. Existing-Home Sales Surged In July By Most On Record
Photographer: Bing Guan/Bloomberg
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A property management and acquisition platform for single-family landlords is going public through a blank-check merger in a bet that investor appetite for rental houses will outlast waning enthusiasm for real estate technology stocks.

PropTech Investment Corporation II, a special-purpose acquisition company led by chairman Tom Hennessy, is merging with Appreciate, which helps investors buy, manage and sell rental homes in more than 40 geographic markets across the US. The combined company will have an estimated enterprise value of $416 million and up to $159 million in net cash as well as a $100 million committed equity facility from an affiliate of Cantor Fitzgerald LP, according to a statement Tuesday.

“We recognize there’s a lot of uncertainty and volatility in the market today,” Hennessy, who took Porch Group Inc. public through an earlier blank-check merger, said in an interview. “Our attitude is, `Let’s get the company public in the right way, give it the tools to grow, and allow it to become a large company in the long term.’”