Colony Capital has big plans for the REO-to-Rentals (RtR) sector. Not only do they want to buy 30,000 plus houses to rent them out, they also want to turn RtR into an institutional grade asset class. That has big implications for single family real estate investors who will now have deep pocketed competition that enjoys economies of scale.
Granted I was initially skeptical about single family homes becoming an institutional asset class but people said that about apartments twenty years ago too. In an interview printed in Institutional Real Estate Letter, Kevin Traenkle of Colony Capital maps out their strategy in pretty good detail, including what I think is Tom Barrack’s real genius piece, their exit plan of Continue reading How to make REOs-to-Rentals work: spin them into a REIT. Look out single family investors, here come the institutions.