SAN FRANCISCO--(BUSINESS WIRE)--Five Ten Capital, a Piedmont, California-based asset manager, announced the closing of a $100mm loan facility for Five Ten Real Estate Opportunities Fund III with Deutsche Bank, one of the foremost global banks. Five Ten’s third real estate investment fund will use the funds to acquire, renovate, and manage single-family rental (“SFR”) housing across multiple regions of the country. In addition to Florida, Georgia, Illinois, Indiana, California, Arizona, and Nevada, where Five Ten currently operates, Five Ten expects to expand into Texas and Missouri with this additional funding.
“We’re very pleased to announce this deal with Deutsche Bank,” said Five Ten’s CEO, Rob Bloemker. “Financing firms like Five Ten help stabilize neighborhoods dealing with high foreclosure rates and depressed housing values, while providing significant local employment for renovation and management of rental properties. Deutsche Bank has proven to be a leader and innovator in this new and emerging asset class and worked with Five Ten in a collaborative fashion to find a way to blend flexibility with necessary credit protection.”
Five Ten will use the facility as warehouse financing for its single-family residential rental property acquisitions until it is able to arrange longer term financing for its portfolio of rental homes, such as through a securitization in the MBS market. “The mortgage-backed securities market has proven through time to be an efficient and vital source of real estate financing, and we believe will soon finance single-family rental homes as the sector matures and consolidates into institutional managers,” said Bloemker.
The SFR asset class, which has been dominated by local investors, has attracted institutional investors over the past few years including Blackstone Group LP, Colony Capital, and American Homes 4 Rent, bringing much needed capital to the more than $600 billion inventory of distressed housing and delinquent mortgages. American Homes 4 Rent hopes to join Silver Bay Realty Trust Corp. (SBY) in the public markets as they have announced their proposed Initial Public Offering.
About Five Ten Capital LLC: Five Ten Capital (www.fivetencapital.com) is an asset manager based in Piedmont, Calif. with specialized expertise in fixed income and real estate markets that seeks creative opportunities with outstanding risk/rewards in overlooked or misunderstood markets. With central real estate operations in Salt Lake City, Five Ten currently has 3 funds that purchase Single-Family Rentals and offers rental homes in 7 states across the Southeast, Midwest, and Western regions of the country.
