Encore Finance Group closed a $275 million securitization backed by mortgage loans on 1,308 stabilized rental properties, the private real estate lender announced Monday, November 2. Its first multi-borrower single-family-rental securitization moves loans it originated into a capital-markets transaction; it is not a purchase of the homes.
The deal, ENCR 2026-SFR1, issued eight classes of notes backed by 36 Encore-originated loans, according to the company announcement. The underlying mortgages carry five-year fixed rates and provide permanent financing to investors who own the rental properties.
Individual loan balances range from $1.6 million to $32.2 million. The 1,308-property count describes the collateral supporting those loans, not a newly acquired housing portfolio. Encore did not identify the borrowers or provide a state-by-state property list in its announcement.
Goldman Sachs & Co. LLC served as sole structuring agent, manager and bookrunner. Those roles concern arranging and placing the securitization. The announcement did not say Goldman bought the homes, became their landlord or purchased the entire debt issue.
Founder and Chief Executive Beth O’Brien said Encore intends to become a repeat issuer in the capital markets. She said balance-sheet lending helps the company accommodate clients through different stages of their borrowing needs, with securitization intended to add liquidity and flexibility to that model.
Caroline Morrill, managing director and head of capital markets, said Encore’s origination, underwriting and access to capital markets support continued business with professional real estate investors as their financing needs change. Those statements describe the lender’s strategy, rather than a promise that borrowers or noteholders will achieve a particular return.
Encore said the transaction expands its debt capabilities alongside equity capital raised over the past year. The release did not quantify that separate equity raise, disclose the interest rates on the underlying mortgages or give pricing and yields for the eight note classes. The announced $275 million refers to the securitization, not a new equity investment in Encore.
The closing gives Encore a completed first transaction in this part of the single-family-rental capital market and a platform for the repeat issuance it says it plans. The announcement was published Monday; it did not give a separate legal closing date. Its immediate significance is financing capacity for an existing pool of rental-property loans, not the delivery of new homes or a change in who owns the properties.
JBizNews Desk | New York
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