MACK Cos. has announced the sale of 93 more investment properties to American Residential Properties, a Phoenix area real estate investment trust, for more than $12 million. This sale comes on the heels of a $28 million, 196 single-family rental property deal that took place between the two companies in December of last year, said James McClelland, president and CEO of Tinley Park-based MACK Cos.
“This deal reflects another step in the long-term partnership between MACK and ARP,” said McClelland. “As the single-family rental market continues to flourish, we know that there will be ample opportunities to provide ARP with the product that they seek — performing single-family homes, expertly managed in prime locations.”
MACK and ARP have reached an agreement that would supply ARP with up to 30-50 fully rented properties each month during the next 24-36 months. The transactions could total up to 1,000 MACK properties purchased by ARP, said McClelland.
Institutional investors such as ARP have recently turned to the single-family rental investment market as a viable tool to enhance their portfolios and build wealth for their investors. As a large portion of the population continues to prefer renting to purchasing a residence, this will continue to be a stable asset class for the foreseeable future, said McClelland.
“We believe this market will remain strong and viable for years to come,” said McClelland. “ARP is wise enough to realize this is not a passing trend, but a shift in society’s preferences. Residents today are more comfortable with renting, but they still require single-family homes in nice neighborhoods. This is the way to obtain it. We have been doing this for many years and we do not see this movement slowing anytime soon, especially in Chicago, where REO single-family homes are still plentiful.”
For more than 15 years, MACK Cos. has been buying foreclosed single-family homes in Chicago’s south suburbs, redeveloping them and turning them into rentals – selling hundreds along the way to investors. MACK stays on as property manager for all of its investors.
MACK is the ideal partner for ARP, as ARP desires turnkey investments it can hold onto for the long term, said McClelland.
“These deals with MACK allow each company to focus on what it does best,” said Steve Schmitz, CEO of ARP. “We are essentially investing in MACK just as much as we are investing in these properties. As our preferred operating partner, it is their job to ensure that these properties are performing at their highest level and consistently brining value to us, the owner.”
MACK purchases homes within a 30-mile radius of its headquarters, allowing for prompt response times to resident’s needs. It also has an intensive screening process, admitting only highly qualified tenants, thus ensuring the property’s performance. Beyond it’s obligation to their investors, MACK is also conscious of the impact it has on each community it operates in.
“We are not only providing a return for investors, but improving the lives of working families and communities as well,” said McClelland. “By redeveloping and repositioning thousands of homes in Chicago’s south suburbs, we are stabilizing value in these communities.”
