FYR SFR BORROWER LLC completed the purchase of 133 properties in Lee County, FL for $9,430,058.63 from RHA 2-SW FL LLC. A copy of the contract can be located at this link, and the list of the Lee County single family homes is below for review. Information about the parent transction, which inluded over 3,236 single family properties valued at slighlty over $485 million dollars is below the Lee County list of properties.
Rental Home Associates c/o Latham & Watkins LLP 40 650 Town Center Drive, 20th Floor Costa Mesa, CA 92626 Facsimile: 714.755.8290 Attention: Charles K. Ruck and David M. Wheeler Email: charles.ruck@lw.com; david.wheeler@lw.com with a copy to: Latham & Watkins LLP 650 Town Center Drive, 20th Floor Costa Mesa, CA 92626 Facsimile: 714.755.8290 Attention: Charles K. Ruck and David M. Wheeler Email: charles.ruck@lw.com; david.wheeler@lw.com
(b) if to Sellers: Rental Home Associates c/o Latham & Watkins LLP 650 Town Center Drive, 20th Floor Costa Mesa, CA 92626 Facsimile: 714.755.8290 Attention: Charles K. Ruck and David M. Wheeler Email: charles.ruck@lw.com; david.wheeler@lw.com with a copy to: Latham & Watkins LLP 650 Town Center Drive, 20th Floor Costa Mesa, CA 92626 Facsimile: 714.755.8290 Attention: Charles K. Ruck and David M. Wheeler Email: charles.ruck@lw.com; david.wheeler@lw.com
(c) if to Purchaser or, if after the Closing, to any of the Target Companies: Front Yard Residential L.P. c/o Altisource Asset Management Corporation 36C Strand Street Christiansted, VI 00820 Attn: Robin Lowe E-Mail: Robin.Lowe@altisourceAMC.com with a copy to: Hunton Andrews Kurth LLP Bank of America Plaza Suite 3500 41 101 South Tryon Street Charlotte, NC 28280 Attn: Robert J. Hahn E-Mail: rhahn@huntonak.com
Material Definitive Agreement
On August 8, 2018, Front Yard Residential Corporation (the "Company") acquired all of the equity interests of HavenBrook Partners, LLC, a Delaware limited liability company ("HavenBrook"), and three real estate investment trusts owned by Rental Home Associates LLC, a Delaware limited liability company ("RHA"), for an aggregate purchase price of $485.0 million. HavenBrook is a property management company, and the assets of the entities acquired from RHA include 3,236 single-family rental properties (the "RHA Acquired Properties").
The acquisition increases the size of the Company's single-family rental portfolio to approximately 15,000 properties and enhances the Company's presence in existing strategic target markets, including Alabama, Florida, Georgia and Minnesota. HavenBrook provides the Company with an internal property management service company that will initially manage the RHA Acquired Properties and, following a short transition period, will also manage the rental properties currently managed by Altisource S.à r.l., one of the Company's external property managers. In connection with this acquisition, the Company amended the Master Services Agreement (the "MSA"), dated December 21, 2012, with Altisource S.à r.l. as further described below.
In conjunction with the acquisition of HavenBrook and the new rental properties, Berkadia Commercial Mortgage LLC provided a $508.7 million interest only, 10-year loan with a fixed rate of 4.65% (the "Loan") through the Federal Home Loan Mortgage Corporation's ("Freddie Mac") affordable single-family rental pilot program. This financing includes 2,798 of the newly acquired properties as well as 2,015 additional properties already owned by the Company and previously financed on its existing warehouse facilities. Approximately 78% of the homes financed pursuant to the Loan have rents that are considered affordable for families earning at or below 80% of the area median income ("AMI"). Moreover, approximately 93% of the homes are affordable for families earning at or below 100% of AMI.
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