Front Yard Residential Corp., a provider of single-family rental housing, is being taken private by alternative investment management firm Pretium and a group of its investors and funds managed by the Real Estate Equity and Alternative Credit strategies of Ares Management Corp. The all cash transaction values Front Yard at $2.4 billion.
When the deal closes, Pretium says it will be the second-largest owner and operator of SFR properties in the US with a portfolio of more than 55,000 rentals. It also notes that this is the industry's first public-to-private transaction.
Front Yard had been under pressure to liquidate by at least two of its investors—Ocwen Financial and Altisource Portfolio Solutions. The investors argued that Front Yard has not performed satisfactorily and that its stock share should be much higher, according to a report in Mortgage Professional America.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
