Amherst Holdings, LLC announced today that its Single Family Residentialplatform has completed the 2017 Agreement announced in March to sell up to 3,500 single family rental properties to Altisource Residential, L.P., an operating partnership controlled by Altisource Residential Corporation (NYSE: RESI), a publicly traded REIT. In total, 3,465 single family properties were sold in 2017 for an aggregate sale price of $534.9 million. Amherst Single Family Residential will remain the property manager for the 3,465 properties through its subsidiary, Main Street Renewal, LLC, a vertically-integrated property acquisition, repair, and management business that currently manages more than 16,000 single family rental properties in 17 states across the United States.
Today’s closing represents the third and final transaction under the 2017 Agreement. As part of the third transaction, 1,957 single family rental properties were sold to Altisource Residential for a sale price of $305.1 million. Under the terms of the 2017 Agreement, Altisource Residential purchased a fee simple interest in the properties, and Amherst-sponsored entities provided seller financing equal to 75 percent of the sale price or $401.2 million for the three transactions. Concurrent with the close of today’s transaction, the seller financing was sold to an institutional investor in a private transaction. Amherst Pierpont Securities served as the introducing broker.
“We are pleased to have successfully executed our commitment to Altisource Residential pursuant to our 2017 Agreement,” said Drew Flahive, President of Amherst Single Family Residential. “This further exemplifies our platform’s ability to identify, acquire, renovate, lease, and ultimately deliver portfolios of professionally-managed, cash-flowing rental properties to third parties. We expect to continue to scale operations and capital commitment to the single family residential sector to help facilitate continued institutional investment in this asset class.”
Amherst-sponsored entities and Altisource Residential closed on the sale of 1,508 single family rental properties in the first two closings under the 2017 Agreement during the first half of 2017. Including the September 2016 portfolio sale of 4,262 properties to Altisource Residential, Amherst-sponsored entities have sold more than 7,700 single family rental properties to Altisource Residential during the past 14 months.
The Amherst Single Family Residential platform continues to pursue acquisitions in target markets in order to facilitate continued institutional investment in the single family residential asset class. Keith Ramsden, the Chief Investment Officer of Amherst Single Family Residential said, “The platform has demonstrated strong performance fueled by targeted acquisition activity. Over 5,500 acquisitions in 2017 have allowed us to strengthen our presence and enhance our scale in key markets and expand into areas of high growth, such as Phoenix, Columbus, and Las Vegas.” Ramsden continued, “We continue to identify acquisition opportunities to build on our momentum and drive our performance.”
Amherst received legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP and Mayer Brown LLP.
About the Amherst Single Family Residential Platform
The Amherst Single Family Residential platform currently manages multiple pools of capital that invest in single family rental properties. Since the platform was created in 2012, it has raised over $4.0 billion of debt and equity capital in support of its investment in this asset class. Main Street Renewal, LLC, a wholly-owned subsidiary of Amherst Single Family Residential, is an internally managed, vertically-integrated property acquisition, repair, and management business. Main Street Renewal, LLC currently manages more than 16,000 properties across 17 states.
The Amherst Single Family Residential platform provides a comprehensive suite of services to facilitate the ownership of single family rental properties, including property management services, asset level financing and asset management services. With a deep understanding of and proprietary analytics on the single family home and mortgage markets, Amherst’s platform combines a unique combination of national scale with local market knowledge and execution.
About Amherst Holdings
For over 20 years, Amherst and its affiliates have provided institutional investors with a broad suite of financial services related to the U.S. real estate, mortgage and securitized product markets. During this period, Amherst has made extensive investments to develop data, technology resources and proprietary analytical tools that have helped position the firm as a market leader in the areas of real estate risk analysis and behavioral economics. Amherst was one of few mortgage specialists to anticipate the mortgage crisis and has continued to use its experience and analytic resource advantages to evaluate new risks and opportunities in the real estate markets. The firm is majority owned by its employees and employs approximately 775 professionals across its single family residential, asset management, investment banking and technology platforms. For more information, please visit www.amherst.com.