The Real Deal Miami

Texas company mortgages 175 rentals in SoFla for $51M

Loan is part of massive asset-backed securities sale

July 09, 2015 04:15PM
By Sean Stewart-Muniz

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An aerial view of Palm Beach County

An aerial view of Palm Beach County (Credit: Michael Kagdis)

A Texas-based company that owns and manages rental properties just mortgaged 175 homes in Palm Beach County for $51 million.

An affiliate of Invitation Homes, which operates roughly 45,000 homes throughout the United States, took out the financing with JPMorgan Chase Bank late last month.

The 175 homes in this mortgage are part of a tremendous $1.2 billion loan on 7,265 of the company’s rental properties. That loan is being used to back a $853.9 million sale of asset-backed securities, which several reports are calling the largest of its kind.

Most of the homes being mortgaged are located Florida, California and Georgia. The average rental price is $1,461 per month, and 97.1 percent of the properties are rented, according to Morningstar Credit.

Invitation Homes is a division of the Blackstone Group financial company that buys distressed properties, renovates and rents them out. The company scooped up a huge amount of homes in South Florida, including more than 1,000 in Palm Beach County in the three years since its been founded.