Resmark Launches $220 Million Fund for Homebuilder Model Home Sale-Leaseback Platform
LOS ANGELES–(BUSINESS WIRE)–#Homebuilders—The Resmark Companies, one of the nation’s most prominent providers of equity financing for residential real estate development and a leading U.S. real estate investment manager, has announced the launch of the Resmark Model Home Sale-Leaseback Venture to serve the needs of U.S. homebuilders. The Venture has commenced operations with $220 million of equity commitments from investors that include both domestic and international clients advised by The Townsend Group, an innovative firm that targets niche investment strategies and seeks to structure platforms with industry-leading operators.
With the new program, Resmark will purchase completed model homes from leading U.S. homebuilders in quality residential developments nationwide under a sale-leaseback contract, offering homebuilders a capital management tool and providing them with liquidity. An experienced Resmark management team led by Ziv Cohen, Chief Investment Officer of The Resmark Companies, will oversee the strategy.
“Model homes are a mission-critical asset for major homebuilders selling production homes, but they tie up capital for substantial lengths of time,” said Cohen. “With our program, homebuilders will have the option to sell these assets in bulk to a trusted partner and redeploy the capital into other areas of their business while maintaining the use of the model homes until production homes have been sold. In addition, the homebuilders retain the ability to participate in any appreciated value upon the ultimate sale of the model homes.”
“We’re excited to be in business with Resmark, one of the premier residential investment managers in the country. They are well positioned to execute this strategy due to their successful long-term track record and deep relationships with homebuilders across the country,” said Townsend’s Scott Miller. “The initial commitment to the venture will allow us to purchase over $600 million of model homes, which we project will expand rapidly.”
“We are honored to be in business with The Townsend Group, whose clients represent a diverse group of global institutional investors. Townsend’s ability to be forward-thinking and tailor strategies to meet the needs of its clients pairs well with Resmark’s disciplined, proven approach to investing,” emphasized Mitchell Goodman, Resmark’s Chief Operating Officer. “We continually work to identify and vet residential developers across the country, selecting only the best to be our partners in successfully developing more than 85,000 single-family and multifamily homes and lots to date.”
About The Resmark Companies
Founded in 1995, Resmark is a leading residential real estate investment manager that provides capital to premier homebuilders, land developers, and multifamily developers across the United States. As a fiduciary to its investors, Resmark is a best practices aggregator that provides preferred access to America’s best residential developers. The firm has participated in more than 250 investments encompassing over 85,000 single-family and multifamily residential units. Headquartered in Los Angeles, Resmark operates nationally and maintains offices in select target markets. For additional information, please visit www.resmark.com.
About The Townsend Group
The Townsend Group is a leading provider of global investment solutions for real estate, infrastructure, timber and agriculture. With a culture based upon service and success measured by investment performance, Townsend’s clients include many of the world’s leading institutional investors. As of June 30, 2020, Townsend had assets under management of approximately $18.1 billion. The firm provides advisory services to clients with real estate/real asset allocations of $133.9 billion, as of June 30, 2020.
Contacts
Barbara Casey, 310-990-0750
[email protected]
