NEW YORK--(BUSINESS WIRE)--STAC Capital Management announced its a transaction with H&H Homes. STAC was formed by industry veterans earlier this year to focus on residential financing opportunities, including model home purchases, and a goal to purchase or finance over $1 billion in residential real estate assets.
As part of its expanding real estate portfolio, on June 29, 2018, STAC closed a model home “sale-leaseback” transaction with H&H Homes. In the transaction, STAC purchased model homes from H&H and simultaneously entered into lease agreements allowing H&H to utilize the home as sales offices for up to three years. The agreement allows H&H to obtain attractive growth capital while reducing its exposure to fluctuations in housing prices. The homes are located in North and South Carolina.
“We are very pleased with this transaction,” said Edward Steffelin, President, STAC. “STAC was able to obtain a portfolio of high-quality homes with guaranteed revenue that will provide a strong return for our investors, with a significant level of credit protection based on the caliber of the portfolio and strong management of H&H. STAC will look to replicate this kind of win-win transaction for homebuilders and investors as we continue to expand our portfolio of residential real estate assets.”
“STAC has become an excellent partner to H&H Homes,” stated Jack Rostetter, CEO of H&H Homes. “STAC moved quickly and decisively, providing us with additional capital and flexibility, and we expect to have a relationship with them for years to come.”
STAC Capital’s senior management average over 20+ years of industry experience. As part of its investment strategy, STAC will offer select builders the opportunity to sell and leaseback portfolios of model homes. In 2018 STAC began to partner with a number of institutional capital sources to offer these homebuilders over $1 billion in growth capital. Please see www.staccap.com for more details.
Established in 1991 by Ralph and Linda Huff, H&H Homes was inspired to provide high-quality affordable new homes for military families serving at Fort Bragg in Fayetteville, NC. Today the company has grown to seven markets in the Carolinas and celebrated their 6000th homeowner in 2018. Recognized in major publications such as Builder Magazine for their excellence, H&H Homes is a customer-committed firm that takes pride in providing value by offering high-end quality and exceptional features to its homebuyers. For more information, please see www.hhhomes.com.
