Metropolitan Partners Group Management (Metropolitan), a direct-lending fund manager that provides senior-secured, transitional capital to small and mid-sized businesses in the US, has closed an investment in US Home Aggregation (US Home), an acquirer and manager of single-family rental homes across targeted markets in the US.
US Home will use the committed capital from Metropolitan to expand its existing portfolio of homes.
US Home acquires foreclosed single-family homes at a significant discount to both market and replacement costs in tertiary markets across the country that possess positive demographic and employment trends. The company uses a proprietary mapping tool that targets vacant, bank-owned homes within established neighbourhoods. US Home renovates these homes and leases them to tenants.
“We are incredibly excited to partner with US Home. The company is applying technology and scale to a non-institutional sector,” says Paul Lisiak, Metropolitan’s Managing Partner and Chief Investment Officer. “Metropolitan’s investment, combined with our experience investing and scaling with partners within the real estate vertical, will provide US Home with the access and the ability to strategically grow its portfolio of properties.”
A structural housing shortage has developed in the US since the 2008 financial crisis, which has driven down housing affordability and sent single unit rental vacancy rates to their lowest levels in more than 20 years. 2018 Census data estimates that there are approximately 16 million vacant homes in the US.
“We are excited to have Metropolitan as a partner,” says John Halasz, US Home’s Chief Executive Officer. “Today, this space is significantly underserved. With this partnership, we are well underway to being able to make a difference in thousands of people’s lives by providing them with affordable homes in the neighbourhoods they want to live in.”
