FeatherStone Investment Group has begun underwriting and structuring its first rental income securitization and plans to issue two other deals this year, according to a company press release.
The securitization should be complete within the next 90 to 120 days.
“This is a huge structural achievement for FeatherStone Investment Group,” said Scott Manson, General Counsel for the group. Manson said that the plan is to execute the following two securitization structures via the public market.
FeatherStone Investment Group is now underwriting and structuring transactions through its private mortgage division, which provides funds to acquire or refinance rental income properties nationwide for borrowers.
The group structures single-family rental properties into pools and issue securities to investors in the secondary mortgage market as a real estate mortgage investment conduit.
It invests in markets where single-family rental properties offer 7% to 10% in annual rental distributions and the potential for a 35% increase in property values over the next five years.