SNR Denton and Citi Create New Financing Facility for Single Family Rental Home Asset Class
Pioneering Approach Incorporates Elements From Residential and Commercial Facilities
NEW YORK, October 4, 2012 - Members of SNR Denton's Capital Markets practice, along with Citi, worked collaboratively to pioneer an innovative financing structure that provided a $245 million revolving credit facility to Waypoint Homes and GI Partners. This innovation will help support the acquisition, renovation, long-term ownership and management of Waypoint's growing national portfolio of single family rental (SFR) homes.
The multi-year, revolving credit facility is designed to be flexible for the borrower, with funds made available at increasing advance rates based upon the stage of the home as it progresses from acquisition, through completed renovation, through lease-up and occupancy. SNR Denton partner Bob McCarthy (Capital Markets, New York) led the SNR Denton deal team that also included counsel Shannon McSwain (Capital Markets, San Francisco) and Managing Associate Michelle Alves (Capital Markets, New York).
"The availability of debt financing is critical to the success of the emerging SFR business, yet no tested financial model existed for the industry. We congratulate Citi and Waypoint on breaking new ground with this pioneering approach to structuring the credit facility. Incorporating elements from both residential and commercial facilities, we worked closely with our client to create a collaborative deal structure that balanced the needs of all parties and may serve as a model for future such deals," said McCarthy.
This deal showcases the strategic counsel and innovation of SNR Denton's global Capital Markets practice, which has worked on major securitizations and other financings, especially in the residential and commercial real estate markets. The group's world-class lawyers have become trusted counselors for clients navigating a changing capital markets sector. The Capital Markets practice is regularly called upon by banks, issuers, underwriters, servicers and major residential and commercial conduit purchasers to provide sophisticated legal counsel.
About SNR Denton
SNR Denton is a client-focused international legal practice delivering quality and value. We serve clients in key business and financial centers from more than 60 locations worldwide, through offices, associate firms and special alliances across the US, the UK, Europe, the Middle East, Russia and the CIS, Asia Pacific and Africa, making us a top 25 legal services provider by lawyers and professionals. Joining the complementary top tier practices of its founding firms—Sonnenschein Nath & Rosenthal LLP and Denton Wilde Sapte LLP—SNR Denton offers business, government and institutional clients premier service and a disciplined focus to meet evolving needs in eight key industry sectors: Energy, Transport and Infrastructure; Financial Institutions and Funds; Government; Health and Life Sciences; Insurance; Manufacturing; Real Estate, Retail and Hotels; and Technology, Media and Telecommunications. Please see snrdenton.com for more information and Legal Notices.
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