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| 18700 Chestnut, Country Club Hills |
CHICAGO, IL – MACK Companies, the largest owner of
single-family investment properties in Chicago, and American Residential
Properties, Inc., a real estate investment trust, have announced that MACK
recently sold 196 investment properties to American Residential Properties for
$28 million.
According to James
McClelland, president and CEO of Tinley Park, Ill.-based MACK Companies,
the bulk sale to American Residential Properties marks the largest
performing single-family asset deal in the U.S. this year, and perhaps
ever.
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| Jim McClelland |
“With good reason
there’s been a significant increase in interest from institutional investors
wanting to enter the single-family market this year, but the only deals the
industry has seen close so far have been bulk foreclosure buys on homes that
still need to be redeveloped and leased. There certainly hasn’t been anything
on the level of this deal when it comes to performing single-family rentals,”
said McClelland.
MACK and ARP have
also reached an agreement in principal that would supply ARP with up to 30-50
properties each month during the next 24-36 months. The transactions would mean
another 1,000 properties purchased from MACK, said McClelland
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| Stephen G. Schmitz |
“What American
Residential Properties smartly realizes is that not only is there a shorter
return time on their investment by purchasing performing single-family assets,
but they’re also buying properties from a firm with proven experience in
managing hundreds of single-family rentals.
"We’ve been at this a long time,
we’re not just figuring this out as we go along because single-family rentals
happen to be the hottest asset class around,” McClelland continued.
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| Eric Workman |
“We’ve been looking at entering the Chicago market for a
while given its high foreclosure volume and robust demand for single-family
rentals, but we didn’t want to partner with a firm just because it had a large
amount of inventory – it had to be the right inventory,” said Steve Schmitz,
CEO of Scottsdale, Ariz.-based American Residential Properties, which until now
had invested in single-family properties in the Southwestern and Southeastern
United States.
“MACK doesn’t just
grab a random portfolio of distressed properties – it cherry picks its
properties. We liked that they were very discerning in their buys, because
we’re discerning in ours.”
“Over the past two
years we have had a number of institutional investors offer various partnership
models, but they just didn’t fit our business philosophy”, said Eric Workman,
vice president of Sales for MACK.
“What we found with
ARP was a true alignment of company cultures and beliefs related to this asset
class. Each company believes very strongly in a tenant-focused approach and in
a long-term ownership strategy. Those values, along with ARP’s capital
structure and commitment to this industry make us confident that this is the
right deal for all parties involved.”
For a complete copy of the company’s news release, please
contact:
Mark Thomton
(312) 267-4523
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