January 27, 2017
Blackstone’s Invitation Homes filed for an IPO this week, in hopes of raising $1.6 billion. Fannie Mae has agreed to back $1 billion in debt for the single-family portfolio, owned by Blackstone’s Invitation Homes.
The government agencies, Fannie Mae and Freddie Mac, have been in the multifamily apartment market for a good while, but this represents the first kind of dealing in single family homes for the agency.
Invitation Homes currently has roughly 50,000 single family homes in its portfolio. In its filing, the company reported $7.7 billion in debt and $9.7 billion in property. After the first 5 percent of any losses is absorbed by Invitation Homes, both Fannie Mae and Wells Fargo are in a risk-sharing partnership.
Some argue that this kind of deal once again places taxpayers at risk, should another housing bubble occur. But, on the bright side, the portfolio is geographically diverse to mitigate risk.
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