Genesis Capital Closes Largest Ever Rated Residential Transition Loan Securitization

Genesis Capital LLC (“Genesis”), a leading business purpose lender that provides innovative debt solutions to professional real estate developers for new acquisition, renovation, ground-up construction, and long-term rental hold projects across the residential spectrum, today announced it has completed a $500 million rated securitization backed by residential transition loans (“RTL”). The transaction, which received support from 46 investors, represents the largest-ever rated residential transition loan securitization and the first rated transaction focused on ground-up construction.

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The deal’s structure featured three classes of offered bonds ranging from A (low) rated to BB (low) rated bonds.

Goldman Sachs led the offering and served as an initial purchaser along with Deutsche Bank Securities, Morgan Stanley, Nomura, and Performance Trust.

“With the successful close of the largest-ever rated RTL, institutional investors are now able to participate in the RTL market. This is an exciting moment for the residential housing sector, and we are confident that the support of our parent company Rithm Capital Corp., our robust underwriting process, our deep and talented team, and our commitment to maintaining strong credit quality across our portfolio has positioned us to capitalize on a broad range of opportunities ahead,” said Clint Arrowsmith, President of Genesis. “This transaction will provide additional capital for Genesis’ next phase of growth and will enable us to build on our extensive track record of partnering with sophisticated, tenured development professionals to support construction and renovation projects across the residential sector.”

“This transaction is an important step in our commitment to expanding origination capacity across the Rithm platform,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital Corp (“Rithm”). “The offering will enhance Genesis’ ability to provide innovative, tailored capital solutions to high-quality developers. Genesis sits at a critical position in the residential real estate value chain, and we look forward to continuing to work with their team to meet strong nationwide demand for residential construction and renovation financing.”