Colony Financial’s Colony American Homes subsidiary is prepping the second-ever issuance of single-family rental mortgage backed securities. The new $513.6 million securitization deal is being shopped to investors this week.

Colony American Home 2014-1 (CAH 2014-1) will be the second issuance of rated bonds backed by the cash flows and value of single-family rental properties. The collateral backing the CAH 2014-1 transaction consists of 3,399 single-family properties with a total value of $733.7 million.

Colony American Homes acquired all of the properties, which are rented as of the collateral cut-off date of Feb. 1, 2014, with an average monthly rental payment of $1,389.

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