OAKLAND, Calif.--(BUSINESS WIRE)--Starwood Waypoint Residential Trust (NYSE:SWAY) (“the Company”), a leading single-family rental real estate investment trust (“REIT”), announced today that it completed the acquisition of two separate pools of non-performing loans (“NPLs”) for a total purchase price of $218.7 million. The total purchase price includes 1,294 NPLs and 146 REO homes.
The $202.4 million total purchase price of the NPLs represents approximately 69.2% of the total unpaid principal balance (“UPB”) of $292.6 million and 72.2% of the estimated broker price opinion (“BPO”) value of $280.4 million at the time of each purchase.
Gary Beasley, Co-CEO of the Company, commented, “NPL purchases continue to be a great channel for acquiring single-family homes in our target markets at attractive discounts while enhancing equity returns through alternative resolutions. These two pool acquisitions support our view that similar opportunities remain in the marketplace that meet our strict underwriting criteria for portfolio composition and pricing.”
To date, the Company and its predecessor entities have purchased nine NPL pools, which in aggregate represent a total purchase price of $692.3 million. This total purchase price represents approximately 57.7% of the total UPB of $1.2 billion and 69.2% of the estimated total BPO value of $1.0 billion at the time of each purchase.
The acquisition was primarily funded through the Company’s existing $500 million warehouse credit facility with Deutsche Bank A.G. At August 11, 2014, the Company had utilized approximately $396 million of capacity and had approximately $104 million of availability under the expanded credit 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.