Invitation Homes, the real estate investment trust controlled by private equity firm the Blackstone Group, has found a new source of financing for its portfolio of single-family rental homes: Fannie Mae.
In an amended registration statement for its
Invitation Homes will purchase and retain non-guaranteed notes equal to 5% of the loan, in keeping with the requirements for this program.
Up to now, Invitation Homes has relied primarily on private-label securitization for
In November 2013, it was the first Wall Street landlord to securitize loans on a pool of single-family homes through in a transaction that combines characteristics of traditional residential mortgage-backed securities and commercial mortgage-backed securities.
The initial deal as for $479.1 million, and to date it has completed a total of $5.33 billion of such deals to refinance credit facility balances.
Invitation Homes will also use proceeds from its $1.5 billion IPO, as well as from a new, $2.5 billion credit facility with a syndicate of lenders, to refinance part of its rental portfolio, according to the prospectus. These funds will be used to repay the company’s existing credit facilities, a mortgage securitized in a 2013 transaction (IG 2013-1), an a portion of a mortgage securitized in a 2014 transaction (IH 2014-1).
Proceeds from the financing obtained from Wells Fargo and Fannie Mae will be used to repay the remaining amounts outstanding the first-half 2014 securitization and approximately $275 million of a mortgage securitized in a second 2014 transaction (IH1 2014-2).
It’s not the first time that Fannie Mae has come to the Blackstone Group’s aid; last year, the mortgage giant insured a