

Colony American Homes has priced its third single-family rental securitization, Colony American Homes 2015-1.
The company expects gross proceeds of approximately $640m from the offering, with a duration-weighted blended interest rate of LIBOR plus 188.8 basis points. The transaction is expected to close on or around June 11, 2015.
KBRA and Morningstar issued preliminary ratings to the top five classes of CAH 2015-1, awarding a ‘AAA’ rating to the $317m top tranche. Eight classes of certificates will be issued: six entitled to monthly interest and principal distributions, one principal-only, and the final residual class.
As previously reported in Real Estate Capital, leverage on single-family securitizations continues to creep up as the industry becomes more comfortable with the asset class and issuers consider structuring deals with an added risk retention tranche.
CAH 2015-1 — the 20th single-borrower SFR deal — carries a 77.6% LTV, which is significantly higher than previous deals.
The 77.6% LTV on the securitization compares to just 70% on the two previous Colony deals, an increase due in part to the addition of a risk retention (5%) tranche that allows the securities to be sold in Europe.