American Homes 4 Rent Announces Second Non-Performing Loan Fund To Acquire Mortgage Assets
American Homes 4 Rent (NYSE: AMH) (the "Company") today announced the formation of Residential Credit Opportunities, LLC ("RCO"), its second non-performing loan ("NPL") fund being managed by its joint venture, AMIP Management, LLC ("AMIP"). RCO is jointly funded by the Company, JCRI and certain funds and accounts managed by Beach Point Capital Management ("Beach Point") as a complementary NPL fund to the Company's first fund, American Mortgage Investment Partners Fund I, LLC. Jefferies, LLC and Watermen Capital facilitated the equity investment on behalf of Beach Point and AMIP.
AMIP is a joint venture established by the Company and Johnson Capital Residential Investments, LP ("JCRI"), an investment entity formed and capitalized by a group of mortgage servicing and real estate finance professionals. AMIP was formed to manage multiple investment funds focused on the acquisition and resolution of distressed residential mortgage assets in the United States.
"We are pleased to announce our continued growth in the NPL space and the establishment of Residential Credit Opportunities, LLC. We believe that RCO will allow us to acquire more loans at competitive prices. We expect that the combination of complementary NPL funds, focused on the future acquisition and resolution of residential mortgages, will help facilitate our continued growth," said Jack Corrigan, the Company's Chief Operating Officer.
Guy Johnson, JCRI Chairman and founder of Johnson Capital, one of the nation's leading real estate financing and advisory firms, remarked, "We are excited to partner with American Homes 4 Rent and Beach Point, both leaders in their respected industries, American Homes 4 Rent as a leader among single family REITs in the United States and Beach Point as a leader in the credit opportunities markets."
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