STAC Capital Management Expands Growing Real Estate Portfolio in 2019

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In 2019, STAC Capital Management (“STAC”) continued to increase its portfolio of residential real estate assets, including a new credit facility with Flagstar Bank. The financing offered by STAC allows homebuilders to obtain attractive growth capital while reducing its exposure to fluctuations in housing prices thereby mitigating risk in an inherently cyclical business. This is attractive to homebuilders focused on their return on equity and using their capital more efficiently.

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“STAC has proved to be innovative and selective in their approach with the model home sale-leaseback platform on a national basis and we are pleased to have formed a lending relationship with them from the onset,” said Tomas Fach, VP Flagstar Bank’s Homebuilder Finance Group.

In 2019, STAC Capital Management (“STAC”) continued to increase its portfolio of residential real estate assets, including a new credit facility with Flagstar Bank and an expanded portfolio of model homes and finished lots. STAC was formed by industry veterans in 2018 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.

The financing offered by STAC allows homebuilders to obtain attractive growth capital while reducing its exposure to fluctuations in housing prices thereby mitigating risk in an inherently cyclical business. This is attractive to homebuilders focused on their return on equity and using their capital more efficiently.

“STAC has proved to be innovative and selective in their approach with the model home sale-leaseback platform on a national basis and we are pleased to have formed a lending relationship with them from the onset. We look forward to increasing the relationship in the various growing markets across the U.S.,” said Tomas Fach, VP Flagstar Bank’s Homebuilder Finance Group.

As part of its expanding real estate portfolio, STAC continues to offer homebuilders model home “sale-leaseback” facilities and has begun to offer select clients finished lot banking. In a typical model home sale-leaseback transaction, STAC will purchase a portfolio of ten to fifty model homes from a homebuilder and simultaneously enter into lease agreements allowing the builder to utilize the homes as sales offices for a set period.

“We are excited to expand our portfolio of homes in the fast-growing markets throughout the United States,” said Edward Steffelin, President of STAC. “With each purchase we continue to grow a high-quality portfolio focused on revenue generation and significant levels of credit protection. STAC will continue to provide these solutions to select homebuilders allowing each to reduce risk and retain more growth capital.”

STAC Capital’s senior management averages over 20+ years of industry experience. In 2018 STAC began to partner with several institutional capital sources to offer these homebuilders over $1 billion in growth capital. Please see http://www.staccap.com for more details.

About Flagstar Bank: The Homebuilder Finance Group provides construction financing on a national basis with a focus on the primary MSA’s. Target customers are production homebuilders, land developers and lot bankers. They are also providing construction-to-permanent financing facilities in the build-to-rent space along with model home sale-leaseback programs. More specific detail may be found here.

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Rick Abbruzzese
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