Colony American Finance acquires $165m loan portfolio

The firm is also forming a strategic partnership with the online real estate lender Auction.com.

Colony American Finance has bought a $165 million portfolio of acquisition lines secured by single family homes from Archetype Credit Opportunity Fund, a private money lender backed by the original investors in Auction.com, an online real estate marketplace which has sold more than $26 billion in residential and commercial assets. 

CAF has also entered into a strategic partnership with the online marketplace to continue providing financing to Auction.com’s buyer base. The employees dedicated to the Archetype portfolio will be joining CAF, Colony announced yesterday (17 November). 

“We are excited to provide financing and the same high level of service to the Auction.com buyer base and to offer borrowers new products across more jurisdictions,” CAF president Beth O’Brien said in a statement. “This is both a strategic acquisition and partnership that will strengthen our relationship with Auction.com,” she added. 

“As we look for ways to bring more capital to the Auction.com marketplace, we are thrilled to add Colony American Finance as one of our strategic partners,” added Jeff Freiden, chief executive of Auction.com. “We expect to do a lot more together across the platform.” 

Colony American Finance, based in Santa Monica, California, provides acquisition financing lines and loans for investor-owned single family rental portfolios. It is the single-family home lending unit of Colony American Homes, which deals in the acquisition, ownership, renovation, leasing and management of single-family residential homes in the US.  

CAH owns and manages over 18,000 homes for rent in Arizona, California, Colorado, Florida, Georgia, Nevada, North Carolina, Tennessee, and Texas. It was formed in 2012 by Colony Capital, a global real estate investment firm that has about $20 billion of assets under management and has invested approximately $60 billion in real estate since its founding in 1991.