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Does Fannie Mae Regret Its $1B Loan to Invitation Homes?

WASHINGTON, DC--This transaction posed less risk to Fannie Mae than its typical multifamily deals but it priced out as less affordable to renters, according to an Urban Institute report.

By Erika Morphy | erikamorphy | Updated on May 22, 2017

Photo of Kaul Karan Kaul Karan

WASHINGTON, DC–At the start of the year, what will likely be the largest REIT initial public offering for 2017 came to market: the $1.8-billion Invitation Homes, a lessor of single-family homes backed by Blackstone Group.

The wow factor about the size of the IPO — this is the second largest REIT IPO to date — was quickly replaced by even more startling news. As part of the transaction Fannie Mae backed a 10-year, interest-only $1 billion loan originated by Wells Fargo.

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