PE investors troll for single-family properties - The Deal Pipeline

Oaktree Capital Management LP has teamed with property manager Carrington Holding Co. to buy up to $450 million in distressed single-family homes in what's seen as an evolving interest among private equity groups in the troubled housing sector.

The Los Angeles private equity firm, a specialist in distressed investing, and Santa Ana, Calif.-based Carrington believe that by acquiring lender-owned, distressed single-family units and renting them out will help strengthen the housing market.

"Anything that the industry can do to remove distressed properties from the sales inventory will reduce some of the price pressure that the housing market is suffering from right now and help prices appreciate again," said Rick Sharga, executive vice president at Carrington. "There is a market for single-family home rentals as home ownership rates continue to decline and more families are interested in renting at least for the next several years."

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