January 6, 2022 | Archive

Offerpad lands $600M more in credit to power iBuying

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Matthew Blake was HousingWire's senior real estate reporter, covering the people, battles and changes in one of the most elemental parts of the U.S. economy. Before joining HousingWire, Blake reported on real estate for The Real Deal, and covered media and entertainment for the Los Angeles Business Journal.see full bio
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As Zillow tries to swiftly disentangle itself from iBuying, a one-time competitor may borrow over $600 million more to radically increase its instant home-buying purchases.

Offerpad, a Chandler, Arizona-based iBuyer, snared $500 million in a revolving credit facility from an unnamed lender, according to a Dec. 20 Securities and Exchange Commission filing. A revolving credit facility gives borrowers the choice to take out the full, announced amount and Offerpad has already committed to borrow at least $300 million of that, per the filing.

In addition, Offerpad took out $112.5 million in a mezzanine secured credit facility and it has already committed to spend $67.5 million of that amount, according to the filing.

Offerpad is not permitted to say who the lender is “per the terms of the agreement,” said a company spokesperson.

Offerpad now has $1.7 billion of revolving borrowing capacity, per the filing, with $1.3 billion committed.

This is significant borrowing given that Offerpad’s total third-quarter revenue was $540 million, and net income was reported at a $15.3 million loss. Still, the company asserted the loans are not a risk but a “positive outcome that positions us well for the coming year.” >>>Article continued on HousingWire.com.

This article was originally published by HousingWire. The full article is available on HousingWire.com for HW+ Members.

3d rendering of a row of luxury townhouses along a street

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