OAKLAND, CA—Starwood Waypoint Residential Trust has completed the $101.3 million purchase of a non-performing loan pool from a money-center bank.
The non-performing loan portfolio is comprised of 494 non-performing first lien mortgages representing approximately $150.9 million of UPB and $158.2 million of estimated BPO value. The purchase price equates to 67.2% of UPB and 64.0% of BPO value. The transaction was funded with proceeds from a $350 million warehouse credit facility with Deutsche Bank A.G.
“We found the geography of this pool extremely attractive with roughly half of the loans located in two of our key target markets of California and Florida,” commented Brendan Brogan, SVP at Starwood Capital Group. “This is an exciting opportunity, and is representative of the type of high-quality portfolio we are seeking to acquire.”
This represents the sixth NPL pool purchased by the trust and its predecessor entities, which in aggregate represents a total purchase price of $356.6 million. This purchase price represents approximately 52.7% of the total unpaid principal balance (UPB) of $676.6 million and 63.9% of the estimated total BPO value at the time of each purchase totaling $557.8 million.
“The closing of this credit facility, in addition to the $500 million line closed earlier this month, further improves our financial flexibility and ability to attractively finance our growth. added Gary Beasley, co-chief executive officer of the trust. “This NPL pool acquisition evidences our continued commitment to making attractive investments in the single family residential sector which we believe will generate attractive risk-adjusted returns for shareholders. We will continue to leverage our industry-leading operating platform, proprietary technology and local market intelligence to acquire single-family homes and residential non-performing mortgage loans in order to create value.”