Amherst Holdings single-family residential platform completes 2017 purchase and sale agreement
Amherst Holdings has completed the sale of 3,465 single-family rental properties to Altisource Residential, an operating partnership controlled by Altisource Residential Corp., 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, 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.
The acquisition 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, $401.2 million, for the three transactions. Concurrent with the final close of the transaction, the seller financing was sold to an institutional investor in a private transaction. Amherst Pierpont Securities served as the introducing broker.
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.
“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,” said Keith Ramsden, CIO of Amherst Single Family Residential. “We continue to identify acquisition opportunities to build on our momentum and drive our performance.”
