AUSTIN, TX—Amherst Holdings LLC said Friday that its Single Family Residential platform had sold a portfolio of 757 single-family rental properties to Altisource Residential LP. The $106.5-million portfolio sale follows up a $652-million sale of 4,262 SFR properties to the Altisource operating partnership this past September. The two companies have agreed to transact on as many as 2,750 more SFR properties this year, potentially bringing the combined value of the Amherst sales to Altisource past the $1-billion mark.
Under terms of the agreement, Altisource Residential has purchased a 100% equity interest in the portfolio, with Amherst-sponsored entities providing seller financing equal to 75% of the sale price. Amherst will remain the property manager for the portfolio through its subsidiary, Main Street Renewal LLC, which currently manages over 11,000 SFR properties across the US.
“The current macroeconomic backdrop coupled with shifting behavioral trends of US consumers have resulted in continued positive momentum in the performance of single family rental assets,” says Drew Flahive, president of Amherst Single Family Residential. “This performance has driven significant institutional investor interest in the asset class.” He adds that Amherst is continuing to invest “meaningful amounts of capital in this asset class as we remain very constructive about its forward prospects.”
Flahive provided some additional color when his company's previous transaction with Altisource was announced this past September. “We have built an integrated platform with the ability to acquire, develop and convert individual single family properties to rental use and then orchestrate the sale of large portfolios of these homes to institutional investors,” he said last year. “We will continue to expand our acquisition and property management activities to meet the growing demand from both consumers and investors for high quality rental properties.” All told, the company has sold approximately 7,500 rental properties since the beginning of 2016 to institutional investors and operators.
On both the latest deal and the previous one with Altisource, Amherst received legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP and Mayer Brown LLP. Credit Suisse Securities LLC served as the financial advisor on the most recent transaction.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
