Jeff Bezos-Backed REIT Adds New Single-Family Rentals To Its Portfolio

The Arrived Single Family Rental Fund, a non-traded REIT launched late last year by the real estate investment platform that’s backed by Amazon.com Inc. founder Jeff Bezos, has just added five new rental homes to its portfolio. Arrived is best known for its individual offerings, which allow retail investors to purchase shares of rental properties with as little as $100. The company has funded over 370 such offerings, with a total value of more than $152 million, since 2021.

The company launched the Single Family Rental Fund in the fourth quarter of last year, giving investors the option to instantly diversify their real estate portfolio across multiple properties. Arrived says the fund is designed to be “the REIT of the future,” providing more transparency into every property and wider market coverage than a traditional single-family REIT. Investors can view details on each property in the REIT’s portfolio, including the purchase price, monthly rental income and when the property was added.

The fund operates as a non-traded REIT, meaning its shares aren't listed on a public stock exchange. This reduces volatility and ensures the value of shares is directly tied to the value of the REIT's assets rather than the market sentiment on any given day. After a minimum holding period of six months, investors have the option for liquidity through Arrived's redemption plan. 

The REIT pays dividends monthly, which can either be reinvested into any of Arrived's current offerings or withdrawn into a checking account. The average annualized dividend yield across all single-family rentals in Arrived's portfolio 4.2% as of Q4 2023. This is higher than The Real Estate Select Sector SPDR Fund's (XLRE) 3.37% yield and significantly higher than the 1.3% average yield for the S&P 500. 

The latest properties added to the REIT include two homes in Salt Lake City, Utah, two homes in Fayetteville, Ark., and one in Huntsville, Ala. The homes are currently being marketed for rent with anticipated monthly income ranging from $1,695 to $2,395. The new additions to the portfolio will provide greater diversification for investors. 

Arrived is backed by several notable investors, including Jeff Bezos; Uber Technologies Inc. CEO Dara Khosrowshahi; Zillow co-founder Spencer Rascoff; and Salesforce CEO Marc Benioff, who all invested in Arrived’s $37 million seed round in 2021. Bezos later made a subsequent investment in the company’s Series A round in 2022.

Individual Offerings

Besides the Single Family Residential Fund, Arrived has three individual offerings launching on the platform soon:

– The Arlo: Located in the family-friendly neighborhood of Northport, Ala., The Arlo is a newly-built single-story home completed in 2023. This 1,774-square-foot property features 3 bedrooms and 2 bathrooms in an open-concept design. The modern kitchen boasts granite counters, a kitchen island, a pantry and solid surface counters. Residents can enjoy the community’s amenities, including a neighborhood park with a playground, making it an attractive option for families. The property is currently leased and collecting $1,995 per month in rent.

– The Glenncrest: The Glenncrest, a single-family rental near Huntsville, Ala., is a ranch-style home built in 2020. With 4 bedrooms and 2 bathrooms spread across 1,863 square feet, this property offers a spacious open living area, large bedrooms, updated bathrooms, and a kitchen with an island and walk-in pantry. The full brick exterior adds to the home’s charm and modern comfort.The property is currently leased and collecting $1,995 per month in rent. 

– The BeatBox: The BeatBox is a 6-bedroom, 3.5-bath vacation rental that combines musical elements with modern amenities. Built in 1971, this 3,082-square-foot property features a jukebox, playable instruments, and a karaoke stage, along with a fully equipped kitchen and a backyard pool. Located just 10 minutes from ASU and 15 minutes from Old Town Scottsdale, The BeatBox offers convenient access to local attractions. The property is currently listed on Airbnb and is considered a "Guest Favorite."

Investors can sign up on the Arrived platform to invest in any of its offerings with a minimum investment of $100.