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Toorak prices fourth privately placed MBS of residential bridge loans

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Toorak Capital Partners has closed on a privately placed securitization of residential bridge loans primarily for investor-owned single-family rentals, according to a news release.

The $400 million Toorak Mortgage Trust 2020-1 is the largest securitization to date for Toorak, which provides short-term institutional capital for individual and corporate real estate developers.

The oversubscribed transaction was upsized by 33% during the marketing period, according to the firm.

The deal includes a two-year revolving period in which payoffs of existing loans can be reinvested into new loan collateral. The concentration of rehab loans (96%) could vary during the life of the transaction, depending on new assets acquired during the revolving period.

Summit, N.J.-based Toorak (which is backed by global investment firm KKR) has underwritten more than $3 billion in residential bridge loans in the U.S. and the UK, according to the firm. It has a cumulative securitization volume of $1.25 billion across four deals since 2018.

The 2020-1 transaction included a $320 million Class A tranche with a 2.73% coupon and a $40 million Class A-2 tranche pricing at 3.23%.

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