– Acquires 511 Assets for $73.3 Million –
– NPL Purchase Price Represents 69.6% of BPO –
– $309 Million of NPL & REO Closings in Third Quarter 2014 –
OAKLAND, Calif.–Starwood Waypoint Residential Trust (NYSE:SWAY) (“the Company”), a leading single-family rental real estate investment trust (“REIT”), announced today that it has acquired a pool of non-performing loans (“NPLs”) for a total purchase price of $73.3 million. The total purchase price includes 430 NPLs and 81 REO homes.
The $58.7 million total purchase price of the NPLs represents approximately 69.6% of the estimated broker price opinion (“BPO”) value of $84.4 million at the time of purchase.
During the third quarter (as of today), the Company has invested $308.7 million to acquire four pools consisting of 1,800 NPLs and over 300 REO homes. The $268.3 million NPL portion of the total purchase price represents approximately 71.5% of the estimated BPO value of $375.2 million at the time of each purchase.
Gary Beasley, Co-CEO of the Company, commented, “Our NPL business is the direct result of our partnership with Starwood Capital Group, which provides SWAY with proprietary deal flow to help us buy at attractive prices. This deal and others we’ve closed during the third quarter support our view that plentiful opportunities continue to be available in the marketplace that meet our strict underwriting criteria for portfolio composition and pricing.”
Brendan Brogan, Senior Vice President, Acquisitions at Starwood Capital Group, said “We were able to execute a complex transaction for the purchase of a unique portfolio which involved collapsing the seller’s securitization, paying off two mezzanine notes and partially paying down the seller’s debt facility.”
About Starwood Waypoint Residential Trust
Starwood Waypoint Residential Trust is a REIT that acquires, renovates, leases, maintains and manages single-family homes. Starwood Waypoint Residential Trust is Reinventing Renting™ by building a leading, nationally recognized brand that is based on a foundation of respect for its residents and the communities in which it operates. The Company also invests in NPLs to supplement its growth, and seeks optimal resolutions for each loan by working with interested and qualified borrowers to find the most appropriate solutions to keep them in their homes, or alternatively converting loans into homes for rent or sale.
