Blackstone issues sixth SFR deal

Blackstone has issued its sixth single-family rental securitization, Invitation Homes 2015-SFR2.

rrBlackstone has issued its sixth single-family rental securitization, Invitation Homes 2015-SFR2, which is backed by a $636.7m loan secured by first priority mortgages on 3,550 homes.

Morningstar Credit Ratings and Kroll Bond Rating Agency (KBRA) awarded preliminary “AAA” ratings to the $282.3m Class A tranche of the securitization, which reportedly priced at 135bp over Libor, while the “BBB-” Class E notes priced at 315bp over.

(Morningstar)
(Morningstar)

KBRA assigned the portfolio a loan-to-value ratio of 78.9%, which it consistent with the LTVs for the three most recent Invitation Homes transactions but higher than all other SFR offerings, which averaged 70.8%.

“Higher leverage generally implies less borrower equity, greater likelihood of default, and higher overall loss severity should an event of a default occur,” KBRA said in its pre-sale report.

The floating rate loan will require interest-only payments and have a two-year term with three 12-month extension options. It was underwritten by J.P. Morgan, with Deutsche Bank and Goldman Sachs as co-lead bookrunners.

Invitation Homes was formed in 2012 as a subsidiary of Blackstone Real Estate Partners to acquire, refurbish, and manage rental properties. The entity and its affiliates have amassed a portfolio of more than 46,812 homes.

 

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