Freddie Mac Loan Values REIT Portfolio At $95M
Reven Housing REIT is using the $51.3 million loan to pay off debt and fund future acquisitions.
LA JOLLA, CA–Up and coming single-family rental home REIT Reven Housing has secured a $51.3 mortgage loan from Freddie Mac, which the company is using to pay off several mortgage notes and to fund further acquisitions. As part of the due diligence process, Reven Housing REIT’s portfolio was valued at $94.8 million, suggesting an estimated net asset value of approximately $6 per share.
The financing, which was originated by Arbor Agency Lending, is a seven-year, interest-only loan with a fixed interest rate of 4.74%. The loan is secured Reven’s 824 single family homes. The REIT is using $33 million of the proceeds to pay off and replace eight outstanding amortizing mortgage notes, with $17 million slotted for future purchases.
“The refinancing and expansion of our debt capacity with Freddie Mac along with the completed lender diligence reflects an increased net asset value of the company,” said CEO Chad Carpenter. “As Reven matures in the public markets and continues to grow its business, I remain confident that the team’s hard work will be fully recognized in the company’s share price.”
Reven Housing REIT, recently profiled in Nareit’s REIT Magazine, is a smaller player in the single-family rental housing market. It launched in 2012 seeking out, unlike its larger competitors, small portfolios of workforce housing-type rental homes. The company’s focus has been in the southeast and it owns approximately 800 homes.