Pacifica Real Estate Group, a real estate investment and management firm based in San Diego, Calif., recently purchased 699 foreclosures in Florida from Fannie Mae in one very large bulk transaction.
According to PalmBeachPost.com, Pacifica paid $12.3 upfront and will have to provide Fannie Mae with 90 percent of the proceeds from the homes included in the portfolio until the collective sales reach $49.3 million. Once that threshold is satisfied, the companies will split any future profits down the middle.
Fannie Mae stands to collect a projected $78.1 million windfall as a result of the landmark sale.
However, this deal is less about money and more about getting properties in a struggling South Florida housing market, which was among the hardest hit in the mortgage meltdown several years ago, repaired, marketed and sold, as well as rented, as soon as possible.
“The transaction is designed to promote home price stability, improve quality of housing stock and enhance rental inventory of markets by utilizing a rent-and-hold strategy,” according to a summary included in the report.
Fannie Mae typically sells its assets one-by-one via HomePath.com, offering buyers nationwide with special offers and incentives to achieve the goal of homeownership. Competitive interest rates and the “First Look” program that ensures traditional buyers are not beat to the punch by cash-laden investors, are just a few of the many ways the the Government-Sponsored Enterprise (GSE) is doing its part to equitably return the United States housing market back to normal sooner rather than later.
It’s a delicate balance.
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