NEW YORK, July 18, 2017 /PRNewswire/ -- Colony
American Finance, LLC ("CAF") today announced that certain funds
("Fortress Funds") managed by affiliates of Fortress Investment
Group LLC (NYSE: FIG) have purchased the equity and substantially
all of the assets of CAF. Terms of the transactions were not
disclosed.
Simultaneously with the purchase, 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
unique financing needs of residential real estate investors and has
successfully grown into the market leader, having closed over
$2.8 billion in loans since its
inception. The Fortress Funds will be joined by the current senior
management team of CAF in launching CoreVest. The senior management
team will remain with the company and retain their current
titles.
Beth O'Brien, Chief Executive
Officer of CAF who is now CEO of CoreVest, said, "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."
"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."
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."
Freeman and Co. and Latham & Watkins LLP advised affiliates
of Colony NorthStar managed funds, Sidley Austin LLP advised the
Fortress Funds and Dechert LLP advised the management
team.
About CoreVest American Finance Lender LLC
CoreVest is
a specialty finance company that provides a range of debt products
to residential real estate investors. The company offers portfolio
and single-asset term loans for stabilized rental properties as
well as short-term credit lines for acquisitions. Founded in 2014
as Colony American Finance, the Company has financed over 20,000
properties and closed over $2.8
billion in loans. Its products are tailor-made for investors
and it provides attractive rates, rapid timelines and closing
certainty. The company works directly with borrowers as well as
with brokers and correspondent partners. For more information,
visit www.corevestfinance.com.
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SOURCE CoreVest American Finance Lender LLC