TrueLane Homes (formerly True Investments), a leading investor in affordable single-family rental homes, announced today that it has closed a landmark financing transaction with Freddie Mac, through its seller/servicer Berkadia Commercial Mortgage LLC. The transaction represents the first loan purchased under a new, small, narrowly focused pilot program for Freddie Mac, which is targeting investments in affordable housing.
“Our single-family rental pilot is designed to increase the availability of affordable rental housing in communities across the country, and this transaction exemplifies that intention,” said David D. Leopold, vice president Targeted Affordable Sales & Investments at Freddie Mac Multifamily. “All of the homes in this transaction will remain affordable for working families, with over 90 percent affordable for low- and very-low income families. We thank our strong partners at TrueLane Homes and Berkadia for working constructively with us to bring affordable housing to those families that need it.”
The TrueLane Homes transaction signals a new and developing relationship between Freddie Mac and the growing, affordable, single-family rental home sector. Over 90 percent of the homes in the transaction have rents that are considered affordable for families earning at or below 80 percent of the median income (AMI). Moreover, 100 percent of the units are affordable for families earning at or below 100 percent AMI.
Alan True, CEO of TrueLane Homes, believes Freddie Mac’s involvement in the industry further validates the asset class, especially at the affordable price segment. “The working-class markets and price point we operate in have been largely overlooked by other institutional investors,” said Mr. True. “We have been using internal capital to invest in communities and rehabilitate homes since 2012, and it’s great to know that there is attractively priced debt to help fund additional acquisitions and renovations.”
The Freddie Mac financing, as well as other future capital raising initiatives, will fuel TrueLane’s expansion into markets such as Atlanta, Cleveland, Columbus, Houston and Oklahoma City. TrueLane has begun developing strategic partnerships with property management groups, property acquisitions specialists, and rehabilitation and construction services companies, while making strategic key hires.
Berkadia Commercial Mortgage LLC, a joint venture between Berkshire Hathaway and Leucadia National Corp., is the seller/servicer in the transaction.
About TrueLane Homes
TrueLane Homes has been investing in single-family rental homes and revitalizing communities since 2012. As a leading single-family rental investment and management company focusing on quality, affordability and customer service, TrueLane provides a resident experience to make tenants feel at home. The company currently owns over 1,000 homes across eleven select markets.
By exclusively concentrating on the working-class segment of the single-family rental industry, TrueLane Homes has made a lasting impact on tenants, communities and home values. TrueLane has consistently achieved institutional quality rehabilitation of major home components that would otherwise not have been performed, thereby significantly improving home value and positively impacting the neighborhoods and tenants’ quality of living.
TrueLane Homes has developed a comprehensive platform to efficiently acquire, renovate, lease and operate properties to exacting standards. The institutional management team has been enormously successful in pioneering the single-family rental home industry, and have vast and in-depth experiences across real estate and finance industries.