Berkadia Arranges $509M for Single-Family Rental Portfolio

The owner, Front Yard Residential, has invested more than $125 million in maintenance and repairs to rehabilitate the assets. The properties comprise 4,813 units across 12 states.
Anthony Cinquini

Berkadia has arranged $508.7 million in Freddie Mac financing on behalf of Front Yard Residential, for a single-family rental portfolio comprising 4,813 units across 12 states. The properties include 4,636 homes, 96 townhomes, 34 duplexes, three triplexes and one quadplex. Managing Director Anthony Cinquini of Berkadia’s Los Angeles office secured the financing. 

For Front Yard, because single-family properties tend to attract more long-term family renters due to more bedrooms per home when compared to the typical multifamily property, tenant turnover can be less and thus securing a 10-year maturity, a longer loan duration, is very advantageous in managing their business,” Cinquini told Multi-Housing News.

Since 2013, Front Yard has invested more than $125 million on maintenance and repairs to rehabilitate the assets. The financing comes in the form of a 10-year permanent loan sized using a 69 percent loan-to-value ration with a 30-year amortization schedule. 

More than 78 percent of the units have rents considered affordable for residents earning at or below 80 percent of the area median income, while 93 percent are affordable for those earning at or below 100 percent. 

“The financing checked all of the boxes of a worthy transaction for Freddie Mac’s Affordable Single-Family Rental Pilot Program—Front Yard is an experienced and best in class Borrower with expertise in this asset class and excellent in-house and third-party management,” added Cinquini. “Lots of the homes were recently renovated. The homes are located in over 30 different MSA’s. Rents on 78 percent of the homes were affordable to persons earning 80 percent of the area AMI.”

Image courtesy of Berkadia