Toorak Completes $238M RTL Securitization 

Toorak Capital Partners, Inc. closed its second rated residential transition loan (RTL) securitization, Toorak 2024-RRTL2, a $237.5 million deal rated by Morningstar DBRS.  

The initial collateral consisted of 521 RTLs that financed approximately 661 housing units. The securitization featured 53.22% of collateral originated by the firm’s affiliate Merchants Mortgage & Trust Corporation, LLC. The transaction features a two-year revolving period, during which time proceeds from loan payoffs can be reinvested in new loans. 

The Tampa, FL residential real estate lender closed the first-ever rated RTL securitization, which is backed by short-term bridge loans, Toorak 2024-RRTL1, in February 2024. That deal was also rated by Morningstar DBRS, which in October 2023 became the first nationally recognized statistical rating organization to finalize a methodology for RTL securitizations, according to the firm.  

“The framework Toorak pioneered has become the industry standard, and we have been pleased to see multiple other issuers enter the rated RTL securitization market,” said John Beacham, founder and CEO of Toorak. 

To date, Toorak has issued over $3.7 billion in securitizations across 14 deals, including two rated and eight unrated revolving transactions backed by RTL loans and four rated transactions backed by long-term investor loans on rental properties. 

Toorak is a lending platform that funds business-purpose loans backed by residential, multifamily, and mixed-use properties throughout the U.S. and the U.K. Since inception, the company has provided more than $13 billion in capital and funded over 35,000 mortgage loans. 

Morgan Stanley led the offering and served as an initial purchaser along with Deutsche Bank Securities Inc., J.P. Morgan Securities, LLC, Performance Trust Capital Partners, LLC, and KKR Capital Markets.