– The single-family rental investment platform should be deployed ~$1 billion annually —
TAMPA, Florida., April 28, 2022 /PRNewswire/ — Second Avenue Group (“Second Avenue”), a full-service, institutional-grade single-family rental (“SFR”) platform, today announced that Monroe Capital LLC, a leading credit asset manager private, is committed to approximately $250 million to its investment platform through a combination of debt and equity capital.
This commitment brings Second Avenue’s current capacity for new investment to approximately $1.7 billion fully leveraged capital base. Other recent engagements include $500 million of the investment manager Waterton, $150 million from BLG Capital as well as significant sums from other institutional capital partners.
Second Avenue, which was founded in 2017, is currently active in 10 markets, primarily in the Southeast and Southwest United States. The company has targeted 10 additional markets for entry over the next year and plans to roll out as many as ~$1 billion annually.
The company’s growth prospects are consistent with the long-awaited and now widely recognized boom in the single-family rental sector, meeting the growing demand for high-quality suburban rental housing.
“As demand for single-family rental assets has grown, the processes for organizations to invest in the market have become more complex and fragmented,” said mike rothman, Founder and CEO of Second Avenue. “There are approximately 17 million single-family rental homes located across United States. Our experienced team, data-rich technology platform, and multi-channel, multidisciplinary sourcing capabilities provide investors with a single source of truth and a platform for investment administration and analysis. Simplify the process for investors and provide prime rental opportunities for residents.”
Second Avenue offers a purpose-built technology platform that manages all aspects of single-family rental investing in a centralized, agile, and data-rich platform. “We have unlocked value by delivering better results to residents in the maintenance of single-family homes over the past decade, including as founder, president and former CEO of SMS Assist in providing managed maintenance services in approximately 100,000 single-family rental homes, actively participating in improving the rental experience and the homes available,” Rothman said. “By founding Second Avenue, we are bringing clean, safe and functional homes to market that are managed by a team experienced. Ultimately, residents are well served by the efficiencies made possible by a professional management platform.”
CEO and Founder mike rothman commented: “Our private equity partners have made significant commitments to our platform, knowing that we have built a management, investment and real estate services team capable of making risk-adjusted investments and providing a quality concierge service to our residents. We are intentionally growing at an impressive rate to fully unlock this historic opportunity. Monroe Capital’s opportunistic team acted quickly, efficiently and collaboratively; they truly understand the real estate and structured financial side of this company; we look forward to many years of partnership.”
Kyle AsherCo-Head of Monroe Capital’s Opportunistic Credit Group, said, “We are delighted to partner with mike rothman and the Second Avenue team to support their growth and build a high value portfolio of SFR properties in key markets around United States. Second Avenue’s precise, thoughtful and timely strategy in the SFR build-to-let market stood out to our investment team. This partnership represents the continued growth of our specialized finance and real estate businesses and demonstrates our belief in the Second Avenue platform and in the SFR asset class in general.”
This transaction is representative of Monroe Capital’s Real Estate and Specialty Finance divisions within the Opportunistic Private Credit group. The group focuses on structured debt and equity financing in complex and special situations covering all types of assets and all geographies. In 2021, The Opportunist Group completed over 20 debt and equity transactions. The team has a broad investment mandate, flexible capital and prides itself not only on its bottom-up expertise, but also its ability to act quickly and efficiently and provide execution certainty on complex transactions. For more than 18 years, the company has invested in asset-backed transactions with attractive collateral, as well as loans based on cash flow and enterprise value.
About Second Avenue
Discover the pleasure of renting with Second Avenue, the new generation single-family rental investment platform. Second Avenue offers sought-after rental accommodations for today’s families and compelling risk-adjusted returns in portfolios of single-family rental properties (SFRs) for institutional investors. Bringing exceptional discipline, technological simplicity, and professional real estate acquisition and management to the industry, Second Avenue makes renting and investing SFR easier and better than ever. Discover the simplicity and possibility of Second Avenue homes and investment. With ~$2 billion under management, Second Avenue is a private company headquartered in Tampa, Florida with regional teams everywhere United States.
.For more information on Second Avenue, visit: www.secondavenue.com
About Monroe Capital
Monroe Capital LLC (“Monroe”) is a leading asset management company specializing in the private credit markets through various strategies, including direct lending, asset-based lending, specialty finance, opportunistic lending and structured and equity. Since 2004, the company has successfully provided capital solutions to clients in the United States and Canada. Monroe prides itself on being a value-added, friendly partner for business owners, management, and private and independent sponsors. Monroe’s platform offers a wide variety of investment products for institutional and high net worth investors with a focus on generating high quality “alpha” returns regardless of economic or business cycles. The company is headquartered in Chicago and maintains offices in Atlanta, Boston, Los Angeles, Napoli, New York, San Franciscoand Seoul.
Monroe has been recognized by both peers and investors with various awards, including Global M&A Network as 2022 Small Midsize Business Lender of the Year, Americas; Private Debt Investor as 2021 Senior Lender of the Year, 2021 Lower Middle Market Lender of the Year, Americas; Creditflux as Best US Direct Lending Fund 2021; and Pension Bridge as Private Credit Strategy of the Year 2020. For more information, visit www.monroecap.com.
SOURCE Second Avenue