Investor buys 1,032 houses

More than 1,000 rental homes in Memphis changed hands Monday as part of a national buyout of 4,200 rental houses by New York investor Cerberus Capital Management, said Memphis real estate manager Reedy & Co.

BLT Homes, which formed a joint venture for the Memphis houses with Reedy & Co., closed Monday on the sale of 1,032 Memphis houses. They comprise $82 million of the total $440 million sale of 4,200 houses spread across Florida, Illinois, Indiana, Missouri and Tennessee.

BLT Homes, a rental company owned by Building & Land Technology of Stamford, Connecticut, moved into the Memphis market in July 2012 when it began doing business with Reedy & Co. Jay Reedy, a licensed residential contractor, oversaw construction and rehab of the homes owned by the BLT and Reedy & Co.

The joint venture for the Memphis properties is a limited liability corporation called BLTREJV3 Memphis.

Jim Reedy, president of Reedy & Co., said, “The single-family rental industry continues to consolidate. Large companies are seeking economies of scale. Our joint venture took advantage of the depressed prices caused by the Great Recession. This asset class continues to be sought after by investors.”

The houses are located across the city. Rental prices of the homes range from $595 to $1,600. Tenants will not be affected by the sale, Brad Reedy said.

Cerberus, with about $25 billion under management, became a landlord this year when it acquired Five Ten Capital, a company with more than 1,500 houses nationwide.

Following the 2008 financial crash more than $1 billion worth of Memphis housing was acquired by out-of-town landlords.