Segment Spotlight: Single Family Rental Investors and Lenders

Our team at Avenue 365 has had the privilege, and challenge, of being involved with the emergence of the Single Family Rental (SFR) market as a new asset class from early on.

Our first introduction to this segment in early 2013 involved problem solving for the largest institutional investor in the space. Post-acquisition title Spotlight-003issues were causing assets to be rejected for financing with the investment bank, and resolution was required to move forward.

The team at Avenue 365 touched a large number of assets in this process, and gained valuable knowledge and experience in doing so. Findings were shared with the investor and improvements were made to the acquisition process to reduce title issues on the front end.

2014 was largely focused on title and closing services on the financing side with one of the first lenders to launch a platform specifically geared to meet the needs of SFR investors. We closed a series of loan transactions of varying size and state footprint, and once again learned a great deal in doing so. Certain process changes suggested by our Operations team, i.e. Excel reporting for title data and state-level proforma statements, were adopted by the lender as standard process requirements for their title vendors.

More recently, we had the opportunity to manage title for a 1,500 property bulk acquisition. This proved to be challenging and rewarding, both for our team as well as our national title insurance underwriting partner on the transaction.

The SFR industry continues to evolve and mature, and Avenue 365 is excited to be an active participant with both investors and lenders in this dynamic real estate segment.

 

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