Invitation Homes is refinancing two more single-family rental securitizations originally issued in 2014, and it’s cashing out over $200 million in the process, according to rating agency presale reports.

The properties securing these two transactions, Colony American Homes 2014-11 and Colony American Homes 2014-2, will be bundled into collateral for a new transaction called Invitation Homes 2018-SFR1.

The new deal will be backed by a $916.6 million loan secured by first priority mortgages on 4,300 income-producing single-family homes. Roughly 50.5% of the properties were rolled over from CAH 2014-1 and 49.55 from CAH 2014-2. Both these deals are expected to pay off in full when the new transaction closes.

The new loan, which was underwritten by JPMorgan Chase, increases the amount of debt on the 4,300 homes by $204.2 million, but this largely reflects home price appreciation. The new transaction results in a loan-to-value ratio of 70%, based on broker price opinions for the properties — the same level on the two 2014 transactions.

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Kroll Bond Rating Agency puts the LTV at 78.3%, based on adjustments it has made to broker price opinions, that’s lower than its LTV of 80% for CAH 2014-1 but slightly higher than its LTV of 77.4% for CAH 2014-2.

The new loan will pay only interest, and no principal, for its entire term; there is an initial term with five 12-month extension options, for a possible total of seven years.

IH 2018-SFR1 will be the first single-borrower single-family rental securitization issued by Invitation Homes following the merger with Starwood Waypoint Homes. Invitation Homes and its predecessor entities have issued a total of 15 securitizations; to date, four have paid off.

It is also the fifth rated single-family rental securitization to include a voluntary substitution feature that permits the issuer to replace any property or subportfolio of properties with a substitute property or portfolio of properties up to a maximum of 5% of the homes in the underlying portfolio, by count as of the closing date. “As the substitution threshold is by count, it is conceivable that up to 10.8% of the pool, by value, could be substituted if the assets that were removed from the pool consisted of those with the highest BPO values,” Kroll states in its presale report.

Morningstar Credit Rating Agency noted that up to 2% of substitutions, by broker price opinion, can be condos or townhomes, which it believes may be more susceptible to higher vacancy.

The properties are located in or near 19 Core Based Statistical Areas across seven states. The top three CBSAs represent 43.1% of the portfolio and include Los Angeles (18.9%), Riverside (12.8%) and Las Vegas (11.4%).

Some 4.7% of the properties were vacant, while 40 tenants (0.8%) were delinquent on their rent payments. That’s at the high end of vacancy rates for the 22 transactions that Kroll has rated to date. Eighteen of them had vacancy rates at issuance; these rates ranged from 0.5% to 6.5%. Delinquency rates for those deals have been less than 2.6% and averaged 0.6%.

Invitation Homes is the largest operator in the single-family rental sector; its combination with Starwood Waypoint Homes increased the size of its portfolio by nearly 48,000 homes to approximately 82,000 homes.

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