Altisource Residential grows single-family rental portfolio to more than 10,000 homes


Two years ago, Altisource Residential’s portfolio of single-family rental homes checked in at 777 homes.

Now, thanks to a new deal with Amherst Holdings, Altisource’s SFR portfolio is more than 10,000 homes.

The growth started back in November 2015 when Altisource nearly tripled its portfolio in a deal with Invitation Homes, acquiring 1,314 single-family rental homes for $111.4 million. That acquisition pushed Altisource’s portfolio to more than 2,500.

At the time, the company said that it planned to continue growing its single-family rental portfolio, establishing a target of 25,000 homes.

The company continued on that path last year, pushing its portfolio to more than 8,000 homes in a massive deal with Amherst Holdings.

On Thursday, Altisource announced a new deal with Amherst, and thanks to that deal Altisource’s portfolio of single-family rentals now checks in at more than 10,000 properties.

Earlier this year, Altisource and Amherst reached a deal that would allow the company to acquire up to 3,500 single-family rental properties from “entities sponsored by Amherst Holdings.”

The first phase of that deal included Altisource acquiring 757 “stabilized rental properties” from Amherst for an aggregate purchase price of $106.5 million.

In this next phase of the deal, Altisource acquired an additional 751 single-family rental properties Amherst for an aggregate purchase price of $117 million.

That purchase increases Altisource’s portfolio to more than 10,000 homes.

According to Altisource, the company received seller financing of 75% of the purchase price pursuant to a loan agreement with a term of up to five years and a floating interest rate of one-month LIBOR plus a fixed spread of 2.3%.

Additionally, Altisource retained the current property manager for the portfolio, Main Street Renewal.

“We are excited to continue our partnership with Altisource Residential to deliver portfolios of professionally managed single family rental properties with strong cash flow,” Drew Flahive, president of the Amherst single family residential platform, said in a release. “Amherst is committed to investing significant capital in this asset class as single-family rental properties continue to demonstrate strong performance momentum and institutional investor interest in this asset class continues to rise.”

In a separate release, Altisource also noted that in the month of May, it completed its anticipated sale of 2,104 non-performing loans with an unpaid principal balance of $517 million.

That sale leaves approximately 450 non-performing loans in its portfolio, which are expected to be sold in the third quarter.

Of the deals, Altisource CEO George Ellison said: “The completion of these important acquisition and disposition transactions mark the continued successful achievement of targeted milestones in our strategic growth plan.”

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