Second-largest U.S. landlord to offer bonds backed by rents

Jan.January 29, 2014 06:15 PM

Three months after Blackstone Group completed its first sale of bonds backed by rental home payments, single-family landlord American Homes 4 Rent has tapped Goldman Sachs to arrange the sale of its own similarly-styled securities.

The company could sell as much as $500 million of the debt, two people familiar with the offering told Bloomberg. American Homes 4 Rent, as the second-largest single-family landlord in the U.S. (Blackstone is first), has reportedly spent as much as $3.5 billion to gather more than 21,000 rental homes across the country.

The sale of rental bonds is a newly tapped stream of capital for landlords, following a $20 million home-buying spree by private equity firms, hedge funds and other investors over the last two years. The situation is also bolstered by the more than 8 million homeowners who fueled the demand for rentals after losing their properties to foreclosure since the market’s peak in 2007.

“This could be a $15 billion or $20 billion-plus-a-year kind of an asset class,” Ryan Stark, a director who runs mortgage finance at Deutsche Bank, which led the initial $479 million offering for Blackstone, said in a Las Vegas conference speech cited by Bloomberg. [Bloomberg] — Julie Strickland

Related Articles

Living founders Devin Someck and Jon Bakhash

Living New York acquires Mdrn. amid tumult in rental market

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Silverstein Properties' Tal Kerret, Dino Fusco, Marty Burger and 7 WTC (Credit: Joe Woolhead)

Former Goldman exec will be new COO at Silverstein Properties

Top row, from left: Warburg Realty's Frederick Peters, Compass' Rory Golod and R New York's Stefani Berkin; bottom row, from left: Bohemia Realty Group's Sarah Saltzberg, Corcoran Group’s Gary Malin, Triplemint's Philip Lang and Bold New York's Jordan Sachs

Ignore or adhere: Brokerages divided in response to rental fee ban

(Credit: iStock)

Tenant advocates celebrate landlords’ having to pay broker fees

James Whelan and Julia Salazar (Credit: Getty Images, Facebook, iStock)

End of tenant-pays broker fees is “death knell” that will cost jobs and up rents, industry says

Gov. Andrew Cuomo and Secretary of State Rosana Rosado (Credit: Getty Images)

Landlords, not tenants, must pay rental broker fees: state

(Credit: iStock)

Luxury rents up across the city