Firm investing 'long term' in distressed housing markets like Tampa Bay plans to go public
Wake up and good morning. A real estate investment firm is buying up lots of undervalued homes in Florida and other states hardest hit by the housing bubble and lumping them in a new firm called Silver Bay Realty Trust Corp. that it plans to take public.
Silver Bay's CEO is David Miller (photo, right), a one-time Goldman Sachs manager and former U.S. Treasury official who helped supervise the federal financial bailout program known as TARP, the Troubled Assets Relief Program.
A hefty chunk of this housing portfolio is composed of homes in the Tampa Bay area that the investment group has purchased and is now renting or preparing to rent. A regulatory filing by Silver Bay, based in Minnesota, and its REIT (real estate investment trust) parent, Two Harbors Investment, with the Securities and Exchange Commission shows Silver Bay will own and manage more than 3,000 single family homes in its portfolio. And more than 600 of those homes are in the Tampa Bay area purchased for a total of $79.2 million at an average price of just under $126,000. On average, those area homes are 19 years old, are 1,733 square feet in size, with the bulk of them being rented for an average of $1,261.
In addition to the Tampa Bay market, Silver Bay plans to acquired homes, renovate them and lease them in Orlando, Phoenix, Atlanta, Las Vegas, Tucson, California, Charlotte and Dallas, the company says in its SEC filing.
"We intend to hold our properties over the long term.... We also believe our strategy will help to improve the balance and stability of communities that have suffered steep home price declines. and that by acquiring foreclosed, distressed properties, we will help clear excess inventory while making these communities more attractive," Silver Bay says in its filing.
Miller and Silver Bay's strategy are profiled in more depth in this New York Times story that appeared on Sunday. And here's more from Forbes. Once public, Silver Bay will trade on the New York Stock Exchange under the SBY ticker.
-- Robert Trigaux, Business Columnist, Tampa Bay Times