AUSTIN, TX - Amherst Holdings announced that its Single Family Residential platform has completed the 2017 Agreement announced in March to sell up to 3,500 single family rental properties to Altisource Residential, an operating partnership controlled by Altisource Residential Corporation, a publicly traded REIT.
In total, 3,465 single family properties were sold in 2017 for an aggregate sale price of $534.9 million. Amherst Single Family Residential will remain the property manager for the 3,465 properties through its subsidiary, Main Street Renewal, a vertically-integrated property acquisition, repair, and management business that currently manages more than 16,000 single family rental properties in 17 states across the United States.
Today's closing represents the third and final transaction under the 2017 Agreement. As part of the third transaction, 1,957 single family rental properties were sold to Altisource Residential for a sale price of $305.1 million. Under the terms of the 2017 Agreement, Altisource Residential purchased a fee simple interest in the properties, and Amherst-sponsored entities provided seller financing equal to 75 percent of the sale price or $401.2 million for the three transactions. Concurrent with the close of today's transaction, the seller financing was sold to an institutional investor in a private transaction. Amherst Pierpont Securities served as the introducing broker.
"We are pleased to have successfully executed our commitment to Altisource Residential pursuant to our 2017 Agreement," said Drew Flahive, President of Amherst Single Family Residential. "This further exemplifies our platform's ability to identify, acquire, renovate, lease, and ultimately deliver portfolios of professionally-managed, cash-flowing rental properties to third parties. We expect to continue to scale operations and capital commitment to the single family residential sector to help facilitate continued institutional investment in this asset class."
Amherst-sponsored entities and Altisource Residential closed on the sale of 1,508 single family rental properties in the first two closings under the 2017 Agreement during the first half of 2017. Including the September 2016 portfolio sale of 4,262 properties to Altisource Residential, Amherst-sponsored entities have sold more than 7,700 single family rental properties to Altisource Residential during the past 14 months.
The Amherst Single Family Residential platform continues to pursue acquisitions in target markets in order to facilitate continued institutional investment in the single family residential asset class. Keith Ramsden, the Chief Investment Officer of Amherst Single Family Residential said, "The platform has demonstrated strong performance fueled by targeted acquisition activity. Over 5,500 acquisitions in 2017 have allowed us to strengthen our presence and enhance our scale in key markets and expand into areas of high growth, such as Phoenix, Columbus, and Las Vegas." Ramsden continued, "We continue to identify acquisition opportunities to build on our momentum and drive our performance."