Blackstone Pitches U.S. Rental-Backed Deal

Nov 4 2013 | 11:13am ET

The Blackstone Group is breaking new ground—and raising new concerns—with the first-ever U.S. home-rental asset-backed securities deal.

The alternative investment giant's lead banker, Deutsche Bank, held a roadshow for the $480 million deal last week, with stops in New York, Boston and Los Angeles. Deutsche Bank also directed its bankers in London to drum up interest from European investors for the deal, which is to be announced today.

Invitation Homes 2013-SFR1 is billed as a hybrid residential and commercial mortgage-backed security. The deal's collateral is the rental income from 3,207 foreclosed single-family homes, primarily in Arizona, California, Florida and Georgia.

In addition to Deutsche Bank, Credit Suisse and JPMorgan Chase are co-structuring the deal.

According to IFR, some investors and ratings agencies expressed concern that Blackstone did not have enough pledged equity capital in the deal, and that there is no apparent contingency plan if Blackstone shuts down the property manager, which is a subsidiary of its Invitation Homes business.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of