Invitation Homes Merger Creates Largest Single-Family REIT
Project Overview
Invitation Homes
(INVH) and Starwood Waypoint Homes (SWAY) in 2017 formed the largest single-family REIT with over 80,000 homes across 16 markets, a combined employee base of approximately 1,450 and an enterprise value of $20 billion. The merger brought together the best practices, technology and personnel from both firms to create the premier single-family rental company in the United States, with an unparalleled ability to deliver enhanced service offerings to residents more efficiently, continue investing in local communities and generate value for stockholders. RealFoundations was engaged to provide an Integration Management Office (IMO) to support the combination of operating platforms, design the future-state technology landscape and deliver an accelerated adoption program for this massive change.
“RF has been indispensable to us throughout the merger integration process, which offered Invitation Homes a unique opportunity to improve resident service, create operating efficiencies, establish unified policies and procedures, and increase scale. The firm has expertly guided us through the complex process of assessing accounting and technology needs for the combined organization and then building an industry-leading platform to support operations and build value today and in the years ahead.”
— Charles Young, Executive Vice President and Chief Operating Officer, Invitation Homes
Challenges
- Accelerated timeline and synergy targets,
- Evolving technology landscape that impacted the ability to coordinate future-state operational & technical platform design,
- Evolving merger strategy that impacted future-state operational & technical platform design,
- Changing strategy for non-financials technology footprint, and
- Complex program of improvement initiatives delivered with the merged operating & technology platforms.
Value-Add Solutions
RealFoundations established a hybrid IH/RF Project Management Office that:
- Coordinated all efforts to fully merge the two entities,
- Managed 9 operational and technology workstreams, comprised of 75 initiatives to achieve target synergies on time and under budget, and
- Helped define/prioritize initiatives and develop work plans to address and mitigate risk.
RealFoundations also:
- Developed a reporting bridge & bank reconciliation ‘tool’ to move data between legacy systems and the NewCo Yardi environment, to enable interim consolidated reporting during the implementation phase,
- Architected future-state technology platform to reduce risk, enhance capabilities and lower operating costs,
- Implemented a new design of Yardi 7S for GL, AP, Payscan & Fixed Assets,
- Managed multiple operating and technical platform changes,
- Migrated 100M+ data records in 20 days, and
- Trained 1,200+ end-users across 17 markets and 2 corporate offices.
Realized Benefits
This “merger of equals” realized synergies from consolidating onto a re-designed, robust Yardi environment and adopting a best-in-class operating model.
Connect with Us
Contact us to learn more about how RealFoundations can deliver long-term benefits to your organization. Let’s Start the Conversation.
Our Yardi Experience
As a premier Yardi Independent Consultant, RealFoundations has significant experience implementing, upgrading and supporting the full suite of Yardi® products for our clients across various real estate market segments. Our practitioners are proficient in all Yardi Marketing, Property Management, Procurement, Asset Management and Investment solutions. Since 2000, we have completed 80+ Yardi implementations/upgrades and developed unique design workbooks that document cross-module configuration. Our know-how and cross-module experience in various Yardi products empower us to meet our client’s most important functional requirements and consistently deliver valuable outcomes. To learn more, visit Yardi Consulting and Services.
About Yardi
Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, CA and serves clients worldwide.
About Invitation Homes
Invitation Homes is a leading owner and operator of single-family rental homes, offering residents high-quality homes across America. With over 80,000 homes for lease in 16 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools. The company’s mission statement, “Together with you, we make a house a home,” reflects its commitment to high-touch service that continuously enhances residents’ living experiences and provides homes where individuals and families can thrive.
About RealFoundations
RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.
