By Matthew Goldstein and Jennifer Ablan
The state of Alaska is looking to cash in on the growing demand for renting out foreclosed single-family homes.
A spokeswoman for the $40 billion Alaska Permanent Fund recently approved a $400 million investment with a California-based company that specializes in buying foreclosed homes and renting them out. Laura Achee said the fund is still negotiating the terms of the deal with American Homes 4 Rent LLC.
The Alaska fund, which is managed by a state-owned corporation, is believed to be one of the first public investment arms to sink money into the market for foreclosed homes.
Representatives for American Homes 4 Rent, which is affiliated with Malibu Management of California, didn’t return requests for comment. News of the Alaska deal was first reported by the Juneau Empire.
Back in March, we reported that institutional money was beginning to circle the market for foreclosed homes in the hopes of building a new asset class in single-family homes. We called it a new “Wall Street gold rush” and since then the interest only appears to have grown.