Colony American Homes has completed a securitization transaction backed by income generated from almost 3,400 single-family rental homes.
The Scottsdale, Ariz.-based company sold $513 million in bonds with a blended London InterBank Offered Rate plus 178 basis points.
“This securitization further validates the single-family rental asset class,” said Justin Chang, chief executive officer of CAH, in a press release, and underscores the importance of management infrastructure and operating scale.
CAH is one of a growing number of firms that can now use funds raised from the securitization to grow their business.
The plan is “to actively acquire homes” in selected markets, according to Chen, and maintain its existing portfolio of more than 16,000 rental homes in Arizona, California, Colorado, Florida, Georgia, Nevada and Texas.
April 14, 2014
National Mortgage News
By Amilda Dymi