Duration Counts When Bidding For Single Family Rental Deals

Freddie Mac headquarters

WASHINGTON, DC–Managing Director Anthony Cinquini of Berkadia’s Los Angeles office doesn’t know which insurance company or investment bank tried to beat out Freddie Mac in its $508.7 million financing of Front Yard Residential’s affordable single-family home housing portfolio acquisition announced last week. But if he had to guess it was a combination of factors, such as the interest rate and the duration of the loan. Especially the duration of the loan, which was ten years. “The duration of the loan is a critical component to single-family rental home financing,” he tells GlobeSt.com.

Berkadia Commercial Mortgage arranged the loan via Freddie Mac’s affordable SFR pilot program. Front Yard acquired HavenBrook Partners, a Duluth, GA-based single family home property manager, as well as its portfolio of US-based 3,236 managed properties for $485 million.