Guardian Residential (Guardian) today announced the closing of its inaugural fund, which is tied to the acquisition of $11.5MM in assets from Dream Finders Homes. Guardian was formed by real estate industry veteran Dennis Cisterna this summer to focus on residential investment opportunities with a goal of deploying $250 million in the next 18 months.
As part of its expanding real estate portfolio, on October 1st, 2018, Guardian closed a sale-leaseback transaction with Dream Finders Homes on 23 homes across 7 states. In the transaction, Guardian purchased model homes from Dream Finders, and simultaneously entered into lease agreements allowing the builder to utilize the homes as sales offices for up to three years.
I couldnt think of a better partner to close our first deal, said Dennis Cisterna, CEO of Guardian. Dream Finders is a top-flight builder, and Patricks firm is a great example of the caliber of builder we look to work with to grow our investment profile. In this transaction, Guardian was able to obtain a portfolio of high-quality homes in strong markets with guaranteed revenue that will provide a strong return for our investors. Between our sale-leaseback and SFR build-to-rent platforms, we offer a unique opportunity to homebuilders and investors as we continue to expand our portfolio of residential real estate assets.
We are excited to partner with Dennis and Guardian on this model home sale-leaseback transaction, stated Patrick Zalupski, CEO of Dream Finders Homes. The portfolio includes some of our best constructed and well-designed homes across our national footprint. The transaction allows us to re-deploy our capital into new communities and continue our growth trajectory.
Upon launch of the company, Guardian has secured equity commitments from several notable firms in the SFR sector, including the founders of Dominion Group, LandCap Partners, Pintar Investments, and Kinloch Partners. Were excited to invest alongside Guardian because of Denniss reputation and long history of success in the single-family sector. Guardians platform is complementary to our business of investing in high-quality new construction, noted Bruce McNeilage, founder of Kinloch.
About Guardian Residential
Guardian Residential is a private real estate investment firm established to capitalize on a unique set of conditions in the U.S. housing market via the acquisition of single-family residential properties. Built on a foundation of steadfast ethics, Guardian Residential is dedicated to Investing in the American Community through the principles of institutional data-driven investment analysis with exceptional boots-on-the-ground operational experience and meticulous asset management to deliver strong, risk-adjusted returns. Visit www.guardiansfr.com for more information.