Five Ten Gets Deutsche Bank Loan to Buy Rental Homes
April 16 (Bloomberg) -- Deutsche Bank AG (DB) (DB) arranged a $100 million credit facility for asset manager Five Ten Capital LLC to buy, renovate and rent U.S. single-family homes.
Five Ten, which owns properties in seven states including Florida and Arizona, plans to expand into Texas and Missouri with the additional funding, the Piedmont, California-based firm said in an e-mailed statement. The company will attempt to arrange longer-term financing for the homes, such as through a securitization in the mortgage-backed securities market.
The single-family home rental business is attracting more institutional capital as the housing market recovers from the worst crash since the Great Depression. Deutsche Bank last month led a syndicate of lenders offering Blackstone Group LP (BX), manager of the largest real estate private-equity fund, an expansion of its credit line to $2.1 billion from $600 million to buy houses, a person with knowledge of the deal said.
“Firms like Five Ten help stabilize neighborhoods dealing with high foreclosure rates and depressed housing values, while providing significant local employment for renovation management of rental properties,” Chief Executive Officer Rob Bloemker said in the statement.
Renee Calabro, a Deutsche Bank spokeswoman, declined to comment.