Carrington Holding Company and Oaktree Capital Management have reached an agreement to purchase $450 million in distressed single-family properties throughout the country and rent out these housing units.
John Brady, head of global real estate at Los Angeles-based Oaktree Capital Management, said utilizing an REO rental program for vacant properties fits the company's investment strategy.
“We believe that this is not only a unique investment opportunity with few qualified large-scale competitors, but one that also has the potential to have a broader positive effect on the housing market and the overall economy,” Brady said.
Carrington currently manages 3,000 single-family rental homes under Fannie Mae's Tenant-in-Place and Deed-for-Lease programs. As part of this agreement, the Santa Ana, Calif.-based company will be responsible in managing the rental strategy for the properties acquired with Oaktree in order to help stabilize the housing market.
Earlier this month, the Federal Housing Finance Agency announced that it plans on selling REO properties owned by the government-sponsored enterprises in bulk to investors beginning in the first quarter this year.
“We believe that re-deploying vacant REO properties into rental homes is a way to help revitalize the housing market,” said Bruce Rose, founder and CEO of Carrington Holding Companies, Santa Ana, Calif.
“Reducing the number of distressed properties for sale can help stabilize home prices and putting families into currently vacant homes can begin the healing process for neighborhoods that have been damaged by foreclosures.”
