San Diego-based Pacifica Companies has purchased a managing interest in 699 Fannie Mae-owned residential properties throughout Florida, near or at market value, according to an announcement made today by the Federal Housing Finance Agency. The deal closed Sept. 6 when Fannie Mae sold the equity cashflows of a newly created LLC, which held the 699 single-family units, to Pacifica and made it the managing member. Pacifica paid more than $12 million for the managing member interest, representing a rough transaction valuation of $78 million for Fannie Mae and a third party valuation of $81.5 million.
However, Fannie Mae will retain an interest in the LLC’s equity cashflows. Its stake entitles it to receive 90 percent of distributions until approximately $50 million is received, at which point Fannie Mae will split distributions with Pacifica evenly at 50 percent. Pacifica will also receive 20 percent of gross rental income collected from the properties as a management fee. – Christopher Cameron