BrokerageIndustry News

REO-to-rental firm partners with real estate brokers

Company aims to raise $250 million to purchase distressed properties

Florida-based private equity firm Transcendent Investments Management (TIM) is partnering with brokers around the country to purchase bank-owned single-family properties as part of a new investment fund it's raising. The fund, which launched its capitalization campaign last year, will be the firm's second distressed property-focused fund and is looking to raise $250 million, said Jordan Kavana, TIM's director. The first fund, implemented in 2008 with a two-phase capitalization of $100 million, was involved with Freddie Mac's HomeSteps program, he said. The original fund invested in about 1,000 real estate owned (REO) properties that had been foreclosed on and repossessed by lenders, and either fixed and flipped them or converted them to rentals in markets across the country, including Miami; Atlanta; Boulder, Colo.; Las Vegas; and Southern California, among other areas. About 90 percent of the homes in the first fund were developed as rentals, Kavana said. In 2011, TIM focused in...