Press Releases
Second Avenue Lands ~$250 Million Investment from Monroe Capital
Chicago, IL, April 28, 2022
— Single-Family Rental Investment Platform Expects to Deploy ~$1 billion annually —
Second Avenue Group (‘Second Avenue’), a full-service, institutional quality single-family rental platform (“SFR”), announced today that Monroe Capital LLC, a leading private credit asset manager, has committed approximately $250 million to its investment platform through a mix of debt and equity capital.
The commitment brings Second Avenue’s current capacity for new investments to an approximate $1.7 billion fully levered capital base. Other recent commitments include $500 million from investment manager Waterton, $150 million from BLG Capital along with significant amounts from other institutional capital partners.
Second Avenue, which was founded in 2017, is currently active in 10 markets, primarily in the Southeastern and Southwestern United States. The firm has targeted an additional 10 markets for entry in the next year and expects to deploy as much as ~$1 billion annually.
The firm’s growth outlook is consistent with the long-awaited and now widely recognized boom in the single-family rental sector, addressing the growing demand for high-quality suburban rental housing.
“As the demand for single family rental assets has grown, the processes for organizations to invest in the market has become more complex and fragmented,” said Mike Rothman, Founder and Chief Executive Officer at Second Avenue. “There are an estimated 17 million single-family rental homes located throughout the United States. Our experienced team, data-rich technology platform and multi-channel, multidisciplinary sourcing capabilities provide investors with a single source of truth and one platform for investment administration and analysis. Streamlining the process for investors and providing premiere rental opportunities for residents.”
Second Avenue features a purpose-built technology-enabled platform that manages all aspects of single-family rental investment into one centralized, nimble, and data-rich platform. “We have unlocked value delivering better outcomes for residents in servicing single-family homes over the past decade including as Founder, Chairman and former CEO of SMS Assist in delivery of managed maintenance services across ~100,000 single-family rental homes, actively participating to enhance the rental experience and the homes available,” said Rothman. “In the founding of Second Avenue, we bring to market clean, safe and functional homes that are managed by an experienced team. Ultimately, residents are well served by the efficiencies made possible by a professional management platform.”
CEO and Founder Mike Rothman commented, “Our investment capital partners have made significant commitments to our platform with the knowledge that we have been building a leadership, investment and property services team that can make risk-adjusted investments and provide a concierge-quality service to our residents. We are intentionally growing at an impressive rate to fully unlock this historic opportunity. Monroe Capital’s Opportunistic team moved swiftly, efficiently and collaboratively; they really understand the real estate and structured finance side of this business; we look forward to many years of partnership”
Kyle Asher, Co-Head of Monroe Capital’s Opportunistic Credit group, stated, “We are pleased to partner with Mike Rothman and the Second Avenue team to support their growth and construct a high value portfolio of SFR properties in key markets around the United States. Second Avenue’s precise, thoughtful, and timely strategy in the build-to-rent SFR market stood out to our investment team. This partnership represents the continued growth of our specialty finance and real estate businesses and demonstrates our conviction in the Second Avenue platform and in the SFR asset class in general.”
This transaction is representative of Monroe Capital’s Real Estate and Specialty Finance divisions within the Opportunistic Private Credit group. The group focuses on complex and special situation structured debt and equity financings covering all asset types and geographies. In 2021, the Opportunistic Group closed over 20 debt and equity transactions. The team has a broad investment mandate, flexible capital and prides itself not only on its “bottoms up” expertise but also on its ability to move quickly and efficiently and provide certainty of execution on complex transactions. For over 18 years, the firm has been investing in asset-backed transactions with attractive collateral, as well as cash flow and enterprise value based loans.
About Second Avenue
Discover the joy of renting with Second Avenue, the next-gen single-family rental investing platform. Second Avenue provides sought-after rental homes for today’s families and compelling risk-adjusted returns in single family rental (SFR) property portfolios for institutional investors. Bringing exceptional discipline, tech simplicity, and professional property acquisition and management to the industry, Second Avenue makes SFR renting and investing easier and better than ever. Discover the simplicity and possibility of Second Avenue homes and investing. With ~$2 billion under management, Second Avenue is privately held and headquartered in Tampa, Florida with regional teams throughout the United States. For more information about Second Avenue, visit: www.secondavenue.com
About Monroe Capital
Monroe Capital LLC (“Monroe”) is a premier boutique asset management firm specializing in private credit markets across various strategies, including direct lending, asset-based lending, specialty finance, opportunistic and structured credit, and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains offices in Atlanta, Boston, Los Angeles, Naples, New York, San Francisco, and Seoul.
Monroe has been recognized by both its peers and investors with various awards including Global M&A Network as the 2022 Small Mid-Markets Lender of the Year, Americas; Private Debt Investor as the 2021 Senior Lender of the Year, 2021 Lower Mid-Market Lender of the Year, Americas; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information, please visit www.monroecap.com.