Atlanta, GA – March 17, 2015 – Now that Single Family Rental securitization has been accepted as a viable asset class and market; all suggest that SFR is definitely a business, not an anomaly.
Structurally, the market has been dominated by single-borrower deals that’s been a hybrid of RMBS and CMBS in that their collateral is individual residential properties and the bonds are backed by rental cash flows. The market is expected to have growth of $10 to $12 billion in SFR transactions in 2015.
Now the main focus will be on the $300-billion market: efficiently connecting the owners of the nation’s 14 million single-family rental properties to the capital markets.
Some of the institutional investors have tapped into the SFR rental market by making loans available that would vary from $1 to $4 million for multi-borrowers. Expectations suggest that this would be a $2.5 billion market and these new deals would most likely include a mix of borrowers that would vary in size and sophistication. The big question marks: who will be first and what will the deal look like?
FEATHERSTONE has chosen to enter this multi-market by way of small to midsize property management roll-up consolidation utilizing leveraged buyout modeling.
FEATHERSTONE is securitizing debt, selling equity portions through its strategic relationship with an equity call option investor and leveraging residual cash flow instruments. Utilizing this strategy provides FEATHERSTONE with a $500 million conduit facility for “B” class assets.
All of FEATHERSTONE’s roll-ups own their SFP rental properties and have been in the property management business 10 to 25 years. Some do their reporting on Excel or QuickBooks and others use the latest multifamily rental reporting software and do rehabs and repairs themselves providing FEATHERSTONE an operational and cost advantage.
FEATHERSTONE is beginning in the Midwest locations of Dayton, OH; St. Louis MO; Cincinnati, OH; and Richmond VA. FEATHERSTONE is aggressively seeking more SFR rental opportunities in the Midwest for our April 30, 2015 offering of $200 million. For an owner/operator to be considered they must have single-family rental assets with values of $50,000-$250,000 with at least 25% to 50% equity positions.
FEATHERSTONE’s 1st roll-ups of companies are: HERITAGE FINANCIAL SERVICES LIMITED, XLT LIMITED PARTNERSHIP, BJ HOMES LIMITED PARTNERSHIP, HILTON CAPITAL GROUP LLC, AT HOME LIMITED PARTNERSHIP, TAILOR LIMITED PARTNERSHIP, ULRICH RENTALS, LLC, CARNISIE INVESTMENTS LLC and SFR rental assets of NORTHSIDE BANK.
FEATHERSTONE CAPITAL MARKETS LLC (FCM) is a securitizer of single-family rental properties and presently undergoing the process to establish itself as a broker dealer. While going through the approval process FEATHERSTONE is utilizing a lead underwriter and the strategic relationship of an equity investor and market maker. Through these relationships, FEATHERSTONE can also provide SFR securitization services to small and midsize firms that would normally not qualify for a Tier 1 Investment Bank.
Media Contact
Company Name: FeatherStone Capital Markets LLC
Contact Person: Media Department
Email: Send Email
Phone: 1.888.797.6175 Ext 0
Country: United States
Website: http://featherstone-cm.com/
Source: www.abnewswire.com