Investment firm Blackstone is attempting to gain a footing in the buy-to-rent market, with the launch of B2R Finance to provide residential buy-to-rent mortgages for property investors.
The firm says funds managed by Blackstone Tactical Opportunities established the new unit.
"We saw a gap in the market where there was a lack of lending products for smaller investors looking to finance their single-family home portfolio," said John Beacham, president of B2R Finance.
"Few financing sources currently exist for this very significant pool of investors and B2R solves that problem," he added.
B2R’s products are geared to help investors with portfolios of five to 500 homes nationwide.
"At B2R, we provide a range of products including fixed and floating-rate options that are designed specifically to address the needs of this market and to offer an efficient closing process," explained Jeff Tennyson, chief operating officer.
Additionally, the company appointed a new senior management team, with Beacham at the helm, bringing more than 17 years of finance experience to the position.
"We see a great opportunity to fund small-and -medium-sized investors in the single-family space to help them expand their portfolios. We are pleased to welcome the B2R team and look forward to building this business to support the growing single-family rental market,” said Jas Khaira of Blackstone Tactical Opportunities.