Fortress to Acquire Colony American Finance And It Is Now CoreVest
Operating platform to be rebranded as CoreVest American Finance Lender, a specialty lender focused on the residential real estate investor space.
The real estate world never stops. It is constantly diversifying, with old partners new alliances are born. On July 18, Colony American Finance, LLC (CAF) announced that Fortress Funds managed by affiliates of Fortress Investment Group LLC (NYSE: FIG) have purchased the equity and substantially all of the assets of CAF.
CAF is a lender that provides financing for real estate investors who want to purchase single-family rental homes, townhomes, condos, and small multifamily properties. This purchase is followed by multiple transactions since Fortress Funds will rebrand the CAF operating platform under the name CoreVest American Finance Lender LLC (CoreVest).
CAF was launched in 2014 to address the financing needs of residential real estate investors. Since then, it has successfully become a market leader closing over $2.8 billion in loans. The Company has also financed over 20,000 properties. Regarding the CoreVest launch, the current senior management team at CAF will will remain with the company and retain their current titles and joint efforts with the The Fortress Funds.
CoreVest’s CEO will be Beth O’Brien, Chief Executive Officer of CAF. “We are excited to bring the same team and the same approach to the market under the CoreVest brand. Our customers will continue to work with our people and experience our high level of service, while also benefiting from the strategic capital brought by the Fortress Funds.”
Other senior executives expressed their excitement for CoreVest’s new chapter as a specialty finance company that provides a range of debt products to residential real estate investors. “We see terrific synergies between CoreVest and Fortress,” added Christopher Hoeffel, Chief Financial Officer of CoreVest. “The new relationship with the Fortress Funds, given their experience in the specialty finance area, will allow us to expand our market leading position in the growing, yet underserved, single-family rental finance market.”
At the same time, Ryan McBride, Chief Operating Officer of CoreVest, noted, “We believe our opportunity for growth is especially strong given the demographic tailwinds for housing in the U.S. This transaction will enable us to provide scalable debt capital and innovative financing products to our investor clients.”
With the new deal, Fortress expands its already substantial real estate empire. Fortress is the parent company for New Residential Investment, which has grown its market share in mortgage servicing rights substantially in the last few years.
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