MACK Cos. announced that it sold 93 single-family rental properties to American Residential Properties for more than $12 million. This deal comes after the two companies completed a similar sale in December for $28 million that allowed ARP to acquire 196 SFRs.
“We believe this market will remain strong and viable for years to come,” said Jim McClelland, president and CEO of Tinley Park, Ill.-based MACK Cos. “ARP realizes this is not a passing trend, but a shift in society’s preferences. Residents today are more comfortable with renting, but they still require single-family homes in nice neighborhoods. This is the way to obtain it and we do not see this movement slowing anytime soon, especially in Chicago, where REO single-family homes are still plentiful.”
As part of their agreements, MACK would supply Phoenix-based ARP with up to 30 to 50 fully rented properties each month over the next two to three years. Overall, the transactions could result in ARP purchasing up to 1,000 housing units from MACK.
MACK buys foreclosed homes within a 30-mile radius of its headquarters, redevelops them and turns them into rentals. The company purchases distressed assets within the Chicago area to allow for immediate response times to resident’s needs, McClelland said.
The company also has an intensive screening process, admitting only highly qualified tenants, therefore ensuring the property’s performance. Additionally, MACK stays on as property manager for all of its investors even after a transaction is finalized.
“These deals with MACK allow each company to focus on what it does best,” said Steve Schmitz, CEO of American Residential Properties. “We are essentially investing in MACK just as much as we are investing in these properties. As our Preferred Operating Partner, it is their job to ensure that these properties are performing at their highest-level and consistently bringing value to us, the owner.”