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Blackstone Goes Public With Single-Family Rentals: What You Need to Know

[fa icon="calendar"] Feb 10, 2017 4:15:30 PM / by Jaclyn Harris

Jaclyn Harris

real-estate-ownamerica.jpgAbout a week ago, Blackstone announced it’s taking its Single-Family Rental bet public to raise $1.6 billion, and Fannie Mae seconded that it’s going to be backing the major housing player with $1 billion in debt.

Why is this important?

#1: Big Players in the Single-Family Rental Space are Seeing Results

Blackstone invested about $10 billion into distressed homes. Beginning in 2012, the real estate leader purchased more than 60,000 homes and invested $1.2 billion in renovations.

With the goal to establish strong rental revenue in the future, Blackstone focused on larger homes in good neighborhoods that were close to jobs and good schools. They established their desired “buy box” or target propertyand capitalized on it.

When Blackstone’s Invitation Homes went public on Tuesday, it raised $1.54 billion giving the company a valuation of $6 billion

Invitation Homes CEO John Bartling says the company is seeing margins at about 62 percent right now, which is very competitive with those of multi-family.

#2: SFR is being Publicly Recognized as a ‘Sector’ of Real Estate

So what about Fannie Mae?

"This transaction is a great opportunity to continue to serve the growing single-family rental market," according to a statement from Fannie Mae. "Invitation Homes is a strong partner with deep experience managing a large volume of single-family rental properties. This transaction helps us gather data and test the market to ensure we are delivering the right solutions that meet the increasing demand for single-family rental housing across all demographics. Fannie Mae is committed to continuously finding better ways to meet the changing needs of families, whether that is through rental options or homeownership."
 
OwnAmerica CEO Greg Rand says, "Fannie Mae is signaling that they are expanding their reach into the Single-Family Rental market, which could mean mortgage bankers will have access to new loan programs for smaller and mid-sized investors in rental properties. That would be a pinnacle moment for the SFR asset class."

#3: Now is the Perfect Time for You to Get in

ownamerica-logo.pngThe SFR market isn’t slowing down. Homeownership rates are still hovering at a historic low, most households that are forming are primarily renter households, and about 15 percent of the US population already lives in Single-Family Rentals.

If you’re looking sell part or all your portfolio, if you’re looking to buy properties to expand your portfolio, or you’re a real estate agent looking to capitalize on large SFR transactions – enter the marketplace on the #1 platform worldwide for buying and selling stabilized SFR portfolios.

OwnAmerica is changing the way Single-Family Rental transactions are completed. Learn more about OwnAmerica.

What You Need to Know About OwnAmerica

Topics: Insider, SFR Owners, Real Estate Agents

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