NEW YORK, NY – Amherst Holdings announced that its single family residential platform completed the sale of a portfolio of 4,262 single family rental properties for $652 million. The purchaser is Altisource Residential, an operating partnership controlled by Altisource Residential Corporation, a publicly traded REIT, which has acquired a 100 percent equity interest in the portfolio.
As part of the transaction, an Amherst sponsored entity is providing seller financing equal to 75% of the purchase price. Amherst will remain the property manager for the portfolio through its subsidiary, Main Street Renewal LLC. This is Amherst’s second major transaction this year with an institutional investor.
“This sale is a marquee transaction for our single family rental business and demonstrates key aspects of our unique business model. We are creating turnkey opportunities for investors globally to gain access to large portfolios of professionally managed and financed rental homes.” said Sean Dobson, Chief Executive Officer at Amherst Holdings LLC.
Drew Flahive, President of Amherst Single Family Residential said, “We have built an integrated platform with the ability to acquire, develop and convert individual single family properties to rental use and then orchestrate the sale of large portfolios of these homes to institutional investors. We will continue to expand our acquisition and property management activities to meet the growing demand from both consumers and investors for high quality rental properties.”
Amherst received legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP and Mayer Brown LLP. Nomura Securities International Inc. served as the financial advisor on the transaction.
The Amherst single family residential platform currently manages multiple pools of capital that invest in single family rental homes. Since the platform was created in 2012, it has raised more than $2.5 billion of debt and equity capital in support of its acquisition, stabilization and portfolio sale activities.
To manage its portfolio of single family homes and support its development and sale activities, Amherst founded Main Street Renewal, an internally managed, vertically integrated property acquisition, repair and management business. The company has a staff of approximately 320 professionals located in Austin, Texas and 20 regional offices and call centers.