Kaye Scholer Represents Placement Agents in Colony American’s Unique Asset-Class Securitization

Kaye Scholer represented the placement agents in Colony American Finance’s securitization of loans secured primarily by single-family rental properties. The securitization, which closed October 29, 2015, is valued at $252 million.

This unique transaction involves a relatively new asset class—a cross between commercial and residential mortgages—and a new structure for the asset class, utilizing a Cayman Islands issuer of secured notes rather than a REMIC pass-through structure.

Colony American Finance is one of the first companies to complete a securitization of loans backed by single-family rental properties. Most previous securitizations of single-family rental properties have involved securitization of a single loan backed by all properties involved in the transaction.

Kaye Scholer previously advised on the warehouse financing of most of the loans included in this securitization transaction.

The Kaye Scholer team included Finance Department chair Henry Morriello, Karsten Giesecke, Daniel Hartnett, Susan Rhee,Bill Fellerhoff and Kathleen Wechter, with Willys Schneider and Gregg Benson addressing tax issues.