OAKLAND, CA—Starwood Waypoint Residential Trust, a leading single-family rental real estate investment trust, has completed the acquisition of two separate pools of non-performing loans (“NPLs”) for a total purchase price of $218.7 million. The total purchase price includes 1,294 NPLs and 146 REO homes.
The $202.4 million total purchase price of the NPLs represents approximately 69.2% of the total unpaid principal balance (“UPB”) of $292.6 million and 72.2% of the estimated broker price opinion (“BPO”) value of $280.4 million at the time of each purchase.
Gary Beasley, Co-CEO of the company, commented, “NPL purchases continue to be a great channel for acquiring single-family homes in our target markets at attractive discounts while enhancing equity returns through alternative resolutions. These two pool acquisitions support our view that similar opportunities remain in the marketplace that meet our strict underwriting criteria for portfolio composition and pricing.”
To date, the Starwood Waypoint and its predecessor entities have purchased nine NPL pools, which in aggregate represent a total purchase price of $692.3 million. This total purchase price represents approximately 57.7% of the total UPB of $1.2 billion and 69.2% of the estimated total BPO value of $1.0 billion at the time of each purchase.
The acquisition was primarily funded through the company’s existing $500 million warehouse credit facility with Deutsche Bank A.G. At August 11, 2014, the firm had utilized approximately $396 million of capacity and had approximately $104 million of availability under the expanded credit facility.
Starwood Waypoint Residential Trust is a REIT that acquires, renovates, leases, maintains and manages single-family homes.