AUSTIN, Texas, June 29, 2017 /PRNewswire/ -- Amherst Holdings, LLC ("Amherst") announced today that its Single Family Residential platform has sold a portfolio of 751 single family rental properties to Altisource Residential, L.P. ("Altisource Residential"), an operating partnership controlled by Altisource Residential Corporation (NYSE: RESI), a publicly traded REIT, for a total sale price of $117.1 million. The transaction represents Amherst's second closing with Altisource Residential as part of a March 2017 agreement to sell Altisource Residential up to 3,500 single family rental properties this year. Amherst and Altisource Residential have now closed on the purchase and sale of 1,508 single family rental properties in the first half of 2017.
Under the terms of the agreement, Altisource Residential has purchased a fee simple interest in the portfolio of properties, and Amherst-sponsored entities are providing seller financing equal to 75 percent of the sale price. Amherst will remain the property manager for the portfolio through its subsidiary, Main Street Renewal, LLC, a vertically integrated property acquisition, repair and management business that currently manages more than 12,000 single family rental properties across the United States.
"We are excited to continue our partnership with Altisource Residential to deliver portfolios of professionally managed single family rental properties with strong cash flow," said Drew Flahive, President of the Amherst Single Family Residential platform. "Amherst is committed to investing significant capital in this asset class as single family rental properties continue to demonstrate strong performance momentum and institutional investor interest in this asset class continues to rise."
The Amherst Single Family Residential platform provides a comprehensive suite of services to facilitate ownership of single family rental properties, including the sale of stabilized cash flowing properties, property management services, asset level financing and asset management services. With a deep understanding and proprietary analytics on the single family home and mortgage markets, Amherst's platform combines a unique combination of national scale with local market knowledge and execution. The platform has sold over 9,000 professionally managed rental properties since the beginning of 2016 to institutional investors and operators.
About the Amherst Single Family Residential platform
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 $3.5 billion of debt and equity capital in support of its acquisition, stabilization and portfolio sale activities. To manage its portfolio of single family properties and support its development and sale activities, Amherst founded Main Street Renewal, LLC, an internally managed, vertically integrated property acquisition, repair and management business.
About Amherst Holdings
For over 20 years, Amherst and its affiliates have provided institutional investors with a broad suite of financial services related to U.S. real estate, mortgage and securitized product markets. During this period, Amherst has made extensive investments to develop data, technology resources and proprietary analytical tools that have helped position the firm as a market leader in the areas of real estate risk analysis and behavioral economics. Amherst was one of few mortgage specialists to anticipate the mortgage crisis and has continued to use its experience and analytic resource advantages to evaluate new risks and opportunities in the real estate markets. The firm is majority owned by its employees and employs approximately 750 professionals through its various subsidiaries and affiliates across its single family residential, asset management, investment banking and technology platforms. For more information, please visit www.amherst.com.
This announcement contains statements that constitute forward-looking statements, including certain statements regarding market and demographic trends, our commitment to sell a number of properties in 2017, our long term business strategy, and our ability to expand our single family residential platform's activities and capabilities. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Terms such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various risks and uncertainties, including general political, financial market, and economic conditions, market and operational risks and our ability to obtain financing and achieve our business objectives. Changes in interest rates could adversely affect our business model. Amherst's agreement to sell additional properties to Altisource Residential is subject to conditions to completion, which may not be satisfied or waived. The forward-looking statements contained in this announcement are based on our beliefs, assumptions and expectations of our future performance, taking into account information currently available to us. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy any securities.
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SOURCE Amherst Holdings, LLC