AUSTIN, Texas, March 31, 2017 /PRNewswire/ -- Amherst
Holdings, LLC today announced that its Single Family Residential
platform has sold a portfolio of 757 single family rental
properties to Altisource Residential, L.P., an operating
partnership controlled by Altisource Residential Corporation (NYSE:
RESI), a publicly traded REIT, for a total sale price of
$106.5 million. The sale
represents Amherst's second
transaction with Altisource Residential. Amherst and Altisource Residential have agreed
to transact on up to an additional 2,750 single family rental
properties in 2017.
Under the terms of the agreement, Altisource Residential has
purchased a 100 percent equity interest in the portfolio, and
Amherst sponsored entities are providing seller financing
equal to 75 percent of the sale price. Amherst will
remain the property manager for the portfolio through its
subsidiary, Main Street Renewal LLC, a vertically integrated
property acquisition, repair and management business that currently
manages over 11,000 single family rental properties across
the United States.
"The current macroeconomic backdrop coupled with shifting
behavioral trends of U.S. consumers have resulted in continued
positive momentum in the performance of single family rental
assets. This performance has driven significant institutional
investor interest in the asset class," said Drew Flahive, President of Amherst Single Family
Residential. "Amherst's vertically
integrated business model provides a turnkey investment
opportunity, which we believe will facilitate the growth of
institutional investment in single family rental assets. We
are investing meaningful amounts of capital in this asset class as
we remain very constructive about its forward prospects."
The Amherst Single Family Residential platform provides a
comprehensive suite of services to facilitate the ownership of
single family rental properties, including the sale of stabilized
cash flowing properties, property management services, asset level
financing and asset management services. The platform has sold
approximately 7,500 professionally-managed rental properties since
the beginning of 2016 to institutional investors and operators.
Amherst received legal counsel from Skadden, Arps, Slate,
Meagher & Flom LLP and Mayer Brown LLP. Credit Suisse
Securities (USA) LLC served as the
financial advisor on the transaction.
About the Amherst Single Family Residential
platform
The Amherst Single Family Residential
platform currently manages multiple pools of capital that invest in
single family rental homes. Since the platform was created in 2012,
it has raised more than $3.5 billion of debt and equity
capital in support of its acquisition, stabilization and portfolio
sale activities. To manage its portfolio of single family homes and
support its development and sale activities, Amherst founded Main Street Renewal LLC, an
internally managed, vertically integrated property acquisition,
repair and management business.
About Amherst Holdings
For over 20
years, Amherst and its affiliates have provided
institutional investors with a broad suite of financial services
related to the U.S. real estate, mortgage and securitized product
markets. During this period, Amherst has made extensive
investments to develop data, technology resources and proprietary
analytical tools that have helped position the firm as a market
leader in the areas of real estate risk analysis and behavioral
economics. Amherst Holdings was one of few mortgage specialists to
anticipate the mortgage crisis and has continued to use its
experience and analytic resource advantages to evaluate new risks
and opportunities in the real estate markets. The firm is majority
owned by its employees and employs approximately 670 professionals
across its single family residential, asset management, investment
banking and technology platforms. For more information, please
visit www.amherst.com.
Forward-Looking Statements
This announcement contains
statements that constitute forward-looking statements, including
certain statements regarding market and demographic trends, our
commitment to sell a number of properties in 2017, our long term
business strategy, and our ability to expand our single family
residential platform's activities and capabilities. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts.
Terms such as "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "might," "plan," "possible,"
"potential," "predict," "should," "would" and similar expressions
may identify forward-looking statements, but the absence of these
words does not mean that a statement is not forward-looking. Actual
events or results may differ materially from those discussed in
forward-looking statements as a result of various risks and
uncertainties, including general political, financial market, and
economic conditions, market and operational risks and our ability
to obtain financing and achieve our business objectives. Changes in
interest rates could adversely affect our business model. Our
agreement to sell additional properties to Altisource Residential
is subject to conditions to completion, which may not be satisfied
or waived. The forward-looking statements contained in this
announcement are based on our beliefs, assumptions and expectations
of our future performance, taking into account information
currently available to us. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
This announcement does not constitute an offer to sell, or a
solicitation of an offer to buy any securities.
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SOURCE Amherst Holdings, LLC