BellaVista Capital, a real estate finance company in Santa Monica, Calif., has registered with the Securities and Exchange Commission for $1 billion in asset-backed securities, signaling the imminent arrival of a new player in the ABS market.
The company focuses on developing residential real estate through senior construction debt, subordinated debt, and mezzanine and equity financing, and is currently invested in up to $10 million in projects in the western and southern U.S. Total costs are between $3 million and $80 million, according to the company's Web site.
Recent transactions include an $11 million construction loan and $4.1 million in mezzanine financing on 17 luxury town homes in San Mateo, Calif., as well as $1.3 million in mezzanine financing for 148 condominiums in Colorado Springs, Col. In addition, the company completed a $12.5 million direct equity investment in condominiums in San Jose, Calif.
The loans included in future trusts will be mortgage or home equity loans secured by one-to-four family residential properties. The loans may be either first or junior liens, and may be either closed-end or revolving credit lines. While BellaVista anticipates a majority of the loans being written to high-quality borrowers, some series may include Alt-A, A minus or subprime collateral, the company states in its filing.
Any future issuance could be comprised of a combination of classes, including principal only, scheduled principal, sequential pay, strip, support and targeted principal. Credit enhancement may come in the form of excess spread, overcollateralization, a letter of credit, surety bond, corporate guaranty, the use of a mortgage pool insurance policy or other options.
Bella Vista is a subsidiary of Belvedere Trust Finance Group, which is in turn a wholly owned subsidiary of Belvedere Trust Mortgage Corp., a wholly owned qualified real estate investment trust (REIT) subsidiary of Anworth Mortgage Asset Corp. Belvedere Trust Mortgage Corp. was formed to acquire and own mortgage loans, with a focus on the high-credit quality jumbo adjustable rate, hybrid and second-lien mortgage markets. Anworth Mortgage Asset Corporation is a publicly owned REIT and is listed on the New York Stock Exchange under the symbol "ANH".
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