Kaye Scholer Advises Credit Suisse in Warehouse Financing of Loans Secured by Single-Family Rental Property Facilities

Kaye Scholer represented Credit Suisse in an innovative warehouse financing of loans made by subsidiaries of Colony American Finance LLC secured by single-family rental properties. This unique transaction involves a new asset class—a cross between commercial and residential mortgages. Single-family rental properties in the past have appeared in transactions in two ways: (1) loans secured by single investment homes, included in limited numbers in RMBS transactions and (2) investment homes owned in bulk by a single fund and backing a single loan that is then securitized. Medium-sized loans to multiple investors, each secured by several single family rental properties, have not as yet been securitized. This transaction involves the development of this new asset class for purposes of ultimate securitization. Colony American Finance is one of the first companies to complete this type of complex transaction.

The Kaye Scholer team included Henry Morriello, Karsten Giesecke, Pauline Christo and Zachary Pfeiffer, with support from Lawton Camp, Daniel Hartnett and Scott Talmadge as well asWillys Schneider and Gregg Benson on tax issues and Michael Damast andAaron Allardyce on real estate issues.