Colony American Finance Grabs $165M Loan Portfolio, Partners with Auction.com

Colony American Finance has purchased a $165 million portfolio of acquisition lines secured by single-family homes from Archetype Credit Opportunity Fund, a private money lender backed by the original investors in Auction.com.
Rick Sharga

Rick Sharga, Auction.com

Colony American Finance has purchased a $165 million portfolio of acquisition lines secured by single-family homes from Archetype Credit Opportunity Fund, L.P., a private money lender backed by the original investors in Auction.com.

Concurrently, CAF entered into a strategic partnership with Auction.com to continue providing financing to the Auction.com buyer base.

“We’re looking for well-capitalized partners to provide the kind of financing options that our investors need to be able to expand their portfolios,” Rick Sharga, Auction.com’s executive vice president, told Commercial Property Executive. “In general one of the things that were very attractive is that they are already actively engaged in doing these kinds of financings and clearly Colony has a great expertise in the single-family rental market.”

As part of the agreement, the employees dedicated to the Archetype portfolio will be joining CAF.

“We are excited to provide financing and the same high level of service to the Auction.com buyer base and to offer borrowers new products across more jurisdictions,” Beth O’Brien, CAF’s president, said in a company release. “This is both a strategic acquisition and partnership that will strengthen our relationship with Auction.com.”

Colony American Homes owns and manages more than 18,000 homes for rent in Arizona, California, Colorado, Florida, Georgia, Nevada, North Carolina, Tennessee, and Texas, and has approximately $20 billion of assets under management and has invested approximately $60 billion in real estate since its founding in 1991.

According to Sharga, Auction.com was seeking a strategic partner who understands the market its customers are investing in and understands the nuances of what’s involved in buying and managing these types of properties.

“Colony has been an active buyer on our platform as they’ve been investing in single-family homes, but this is probably the first deal of its kind that we’ve had with anybody,” he said. “We are very much aligned and we can provide opportunities for investors that we can mutually serve, so it’s a good strategic partnership. It’s a pretty big day for us.”

Auction.com is the nation’s leading online real estate marketplace, having sold more than $26 billion in residential and commercial assets.