Large scale real estate firms are forming alliances to fund expansive purchases of real estate owned (REO) properties. On Wednesday, January 11, Waypoint Real Estate Group and GI Partners announced that “GI has made a significant equity investment in Waypoint to fund its expansion. The GI investment will initially enable the acquisition of more than $250 million in single-family rental homes, and is anticipated to ultimately support the acquisition of more than $1 billion in single-family rental homes over the next two years.” The press release details were reported in an article by Yahoo! Finance.
Waypoint, founded in 2008, has reportedly purchased nearly 1000 housing units near the San Francisco Bay Area and the Inland Empire in Southern California. Waypoint buys and renovates distressed properties and leases them to tenants. This alliance will enable Waypoint to take its business model national.
Carrington and Oaktree Launch Initiative
One week after the Waypoint/GI launch announcement, (Wednesday, January 18) another major expansion campaign was launched. “Carrington Holding Company LLC., announced that it has entered into an agreement with certain investment funds managed by Oaktree Capital Management, L.P. that will fund an initial purchase of up to $450 million in distressed single-family homes across the country.” The announcement was published in an issue of DSNews.com in a story by Carrie Bay.
Carrington Holding Company LLC manages “over 3000 single-family rental homes” as the manager of Fannie Mae’s Tenant-in-Place and Deed-for-Lease programs.
Carrington Founder and CEO, Bruce Rose, stated that “We believe that reducing the number of distressed properties for sale will stabilize home prices and help neighborhoods that have been damaged by foreclosures begin the restoration process.”
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