Citigroup will lend $65 million to Waypoint Real Estate Group for investments in distressed single-family houses converted to rentals.
"We always believed that banks would begin by making balance sheet loans in the REO-to-rental space as a precursor to executing securitization transactions. said Waypoint Managing Director Gary Beasley in an emailed statement. "This is helpful for the banks to more clearly understand the issues specific to the industry, and to lend credibility to the assertion that they believe in the asset class. Look for several large banks to get more active in our space over the upcoming months."