GlobalCapital, which sponsors the US Securitization Awards, named Toorak 2024-RRTL1 the RMBS Deal of the Year at its 2025 event, giving residential transition loan (RTL) securitization a high-profile industry stamp of approval.
When it closed in February 2024, Toorak 2024-RRTL1 became the first rated RTL completed. Managers upsized the capital raise to $240 million, from the initial $192 million, confirming the product's viability on the market.
"The successful execution of the first-ever rated RTL securitization by Toorak in February 2024 was a pivotal moment for the private lending industry, and a significant step forward in the institutionalization of the RTL Market," according to a statement from John Beacham, CEO and founder of Toorak Capital Partners.
Toorak took immediate advantage of DBRS finalizing a methodology for RTL transactions in October 2023, and led the way for a crop of new, rated RTL transactions later in 2024.
The collateral pool was composed of 370 residential transition loans that financed about 527 housing units, according to the company. Often referred to as fix-and-flip loans, RTLs are short-term, with an average life of about one year. Investors use them as bridge financing to renovate an investment property before reselling. Borrowers typically use income from the property sale to repay the loans, which are then used to pay off the bonds.
The US Securitization Awards honor firms like leasing banks, issuers, investors and other service providers to the securitization industry.
