Brookfield Supplies $176M Credit Facility for Atlanta-Area SFR Portfolio

J.P. Morgan Asset Management (JPMAM) has secured $176 million of credit facility financing to complete development of seven single-family rental (SFR) communities in the Atlanta metropolitan area.

Brookfield Asset Management’s real estate credit group provided the credit facility for funds managed by JPMAM for the SFR portfolio of 709 homes in suburban communities within a 30- to 50-minute drive of Downtown Atlanta. Georgia Capital partnered with JPMAM in building the homes, which are in various stages of construction and lease-up.

Walker & Dunlop arranged the transaction with a New York capital markets team led by Jonathan Schwartz, Aaron Appel, Keith Kurland, Adam Schwartz, Michael Ianno, Jackson Irwin and Christopher de Raet. 

Ianno noted that barriers to many people buying homes now in a high mortgage rate environment, particularly in a high-growth area like Atlanta, made this SFR deal attractive from a broker perspective. 

“We’re seeing high demand for single-family rental on the financing side and investment side,” Ianno told Commercial Observer. “It’s difficult to buy homes in today’s environment, so I think higher interest rates for the general demographic of the people that are looking to buy and move out of the city, but still be proximate to the city, has been a huge driver for the asset class as a whole.”

The SFR portfolio comprises 1.4 million square feet of rentable floor space in the Atlanta suburbs of McDonough, Loganville, Cartersville, Hoschton, Dallas and Jefferson. The properties feature a mix of three-, four- and five-bedroom homes. 

“A lot of different lenders were very excited about the opportunity,” Ianno said. “It was a competitive process.”

Officials at Brookfield did not immediately return a request for comment. JPMAM declined to comment.

Andrew Coen can be reached at acoen@commercialobserver.com