Calabasas-based American Homes 4 Rent has secured a $500 million banking facility agreement to acquire and develop single-family rental homes.
Varde Partners, an alternative investment firm in Minneapolis, will provide the capital.
“The two firms have recently closed their first six land transactions into the facility, representing total acquisition and development costs of over $150 million, and due diligence is underway on additional sites,” the companies jointly announced Monday.
“Our facility with Värde Partners will enable us to continue the strategic expansion of our development pipeline while also maintaining our commitment to a best-in-class investment grade balance sheet and reducing long-term risk,” David Singelyn, chief executive of American Homes 4 Rent, said in a statement. “With a continued focus on our disciplined underwriting process and a robust pipeline of development opportunities, we are well-positioned to execute our three-pronged growth strategy in our diversified portfolio footprint while driving value for shareholders.”
Shares of American Homes 4 Rent (AMH) closed Monday down 13 cents, or a fraction of a percent, to $37.30 on the New York Stock Exchange.