Rental-Home Loans To Be Packaged

Contributing Writer, B2R Finance |

 

 B2R Finance, a new Blackstone unit that lends to investors that buy single-family homes and rent them out, is aiming to float a securitization by the middle of the year.

The size of the multi-borrower transaction, which would be the first of its kind, will likely be less than $500 million. An underwriter has not yet been selected.

Blackstone’s Tactical Opportunities Fund rolled out B2R in November to write loans of $500,000 to $50 million on portfolios of rented single-family homes. While a portfolio can contain five to 500 homes, B2R’s focus is on the lower end of that scale.

“If you’re an entrepreneurial investor, with 15 rental homes, there is no institutional-capital lending in your space right now,” said B2R president John Beacham. “You might find a few regional banks doing it, but not many. We intend to fill that void.”

The maximum loan-to-value ratio is 75%.

This month, New York-based B2R hired Justin Short, a former managing director on Cantor Fitzgerald’s commercial MBS trading desk, to run its trading operation. Short, a managing director, reports to Beacham.

Anthony Cazazian joined the firm as vice president of originations late last year. He also reports to Beacham. Cazazian formerly worked at MC-Five Mile and Goldman Sachs.

Blackstone itself also invests in rental single-family homes. The fund shop’s Invitation Homes unit raised $479.1 million in the bond market in November via a securitization backed by a loan on 3,207 single-family homes that it had acquired from distressed sellers and rented out — so-called REO-to-rental properties. Deutsche Bank was the structuring agent, as well as co-bookrunner along with Credit Suisse and J.P. Morgan.

The information on this page is provided for informational purposes only and does not constitute investment, real estate, or legal advice. This information should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. No representations or warranties whatsoever, express or implied, are given as to the accuracy or applicability of the information contained herein. The information may be modified or rendered incorrect by changes in the marketplace or developments in the law, or for any other reason, and may not be applicable to any individual reader’s facts and circumstances.