Toorak Capital Dedicates $500 million to Acquire Long-Term Rental Investor Loans
Toorak Capital Partners (Toorak), the largest capital provider to the residential bridge real estate lending industry, has announced a major capital commitment to its unique Long-Term Rental Investor Loan program. Toorak will dedicate up to $500 million over the next year to purchase these loans in response to continued strength in the residential rental market and growing demand from investors utilizing ‘fix to rent’ strategies.
“Single-family rentals have been one of the best performing asset classes in 2020, and our Rental Investor Loans are designed to meet the long-term needs of such rental investors,” said John Beacham, CEO of Toorak. “These 30-year term loans allow real estate investors to qualify for amounts up to 80% LTV based on future rents from the mortgaged property. The product is ideal for investors looking for longer-term financing options, including those who are refinancing a short-term bridge or rehabilitation loan.”
Toorak, which has funded over $5.0 billion in loans since its inception in 2016, has been further expanding its Long-Term Rental Investor lending platform. “Over the past year, we’ve witnessed an already favorable single-family rental market grow in demand as lockdown policies put a premium on housing. Families are looking for quality long-term rental options, particularly in suburban areas. The lack of affordable homes across the country continues to push housing prices out of reach for many would be buyers, making single-family rentals an attractive option.”
To qualify potential borrowers, Toorak uses innovative credit guidelines that focus on rents from the rental properties relative to the mortgage debt obligations (debt service coverage ratio, “DSCR”), instead of typical borrower income metrics used by majority of residential lenders like debt-to-income (“DTI”) ratio. Toorak’s high credit standards are reflected in de minimus losses across the entire Toorak portfolio — as well as regular securitization issuance attracting strong investor demand.
To support the acquisition of the Long-Term Rental Investor loans, Toorak has made significant human capital additions over the last five months, including industry veterans Carole Mortensen, Ketan Parekh and Frank Shiau. Carole has joined as Head of Credit and brings over 20 years of experience in managing over $30 billion in ABS, RMBS and CMBS transactions from her leadership roles at M1 Strategic Advisors, Waterfall Asset Management, and Ready Capital, among others. Ketan joined as Head of Business Development & Capital Markets and brings over 25 years of experience in residential structured products, mortgage- and real estate-banking from his leadership roles at Invictus Capital Partners, Window Rock Capital Partners and Premium Point Investments, among others. Frank Shiau has joined as Head of Trading and bring over 13 years of experience in trading residential whole loans and bonds and managing securitizations at Fortress Investment Group, Shellpoint Partners, Ranieri Partners Asset Management, and PWC. The company has also invested heavily in technology to provide its lending partners with real-time insights on every step of the loan submission process.
To learn more about Toorak Capital Partners’ 30-year Rental Investor Loans, please contact the firm at toorakcapital@toorakcapital.com or 212-393-4100.
About Toorak Capital Partners
Toorak Capital Partners is an integrated correspondent lending platform based in Summit, NJ. Toorak loans on small balance business purpose residential, multifamily and mixed-use properties throughout the US and the UK. Backed by global investment firm KKR, Toorak Capital Partners acquires loans directly from private lenders that originate high credit quality loans. Toorak Capital Partners’ principals have a deep understanding of mortgage credit in the residential and commercial space with backgrounds in real estate lending, capital markets, securitization, asset-liability management, asset management and credit. Toorak Capital Partners-funded projects have renovated or stabilized housing for more than 17,000 families to date – an average of more than 500 families every month.
Further information is available at www.toorakcapital.com.
