US single-family rental (SFR) homes company Second Avenue has received a $250m (€238m) capital injection from private credit asset manager Monroe Capital.
Second Avenue said Monroe Capital has committed the capital through a mix of debt and equity capital.
The latest commitment lifts Second Avenue’s current capacity for new investments to $1.7bn fully levered capital base.
Other recent commitments include $500m from US investment manager Waterton, $150m from BLG Capital along with significant amounts from other institutional capital partners, the company said.
Founded in 2017, Second Avenue is currently active in 10 markets, primarily in the Southeastern and Southwestern US and plans to double its markets in the next year as it plans to deploy up to a billion dollars a year, the company said.
Mike Rothman, founder and CEO at Second Avenue, said: “Our investment capital partners have made significant commitments to our platform with the knowledge that we have been building a leadership, investment and property services team that can make risk-adjusted investments and provide a concierge-quality service to our residents.
“We are intentionally growing at an impressive rate to fully unlock this historic opportunity. Monroe Capital’s opportunistic team moved swiftly, efficiently and collaboratively; they really understand the real estate and structured finance side of this business; we look forward to many years of partnership.”
Kyle Asher, co-head of Monroe Capital’s opportunistic credit group, said: “We are pleased to partner with Mike Rothman and the Second Avenue team to support their growth and construct a high-value portfolio of SFR properties in key markets around the US.
”Second Avenue’s precise, thoughtful, and timely strategy in the build-to-rent SFR market stood out to our investment team. This partnership represents the continued growth of our speciality finance and real estate businesses and demonstrates our conviction in the Second Avenue platform and in the SFR asset class in general.”
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