Toorak Capital Partners Expands Small-Balance Multifamily Bridge Lending
Updated: Mar 16, 2022
SUMMIT, N.J.--(BUSINESS WIRE)--Toorak Capital Partners, the largest capital provider to the private real estate lending industry, announces today the firm is expanding its small-balance multifamily bridge loan program. The firm, which has already funded over $550 million in small-balance multifamily bridge loans, has committed at least $1 billion in capital to purchase multifamily bridge loans from originators in the coming year. Additionally, Toorak Capital Partners has increased its underwriting and support staff to ensure that multifamily origination partners receive top-notch service, fully transparent credit decisions and industry-leading pricing.
“Multifamily investors seeking to purchase and renovate multifamily properties using loans of up to $10 million have very few capital sources available,” says John Beacham, CEO of Toorak Capital Partners. “Once they’ve stabilized the property, multifamily term loans are widely available, but securing the initial capital to purchase, renovate and stabilize a small multifamily property can be very difficult.” To address this issue, Toorak Capital Partners has stepped in with a nationwide small-balance bridge loan program to offer fully transparent financing options to the multifamily market.
Toorak Capital Partners provides capital to multifamily originators on a correspondent basis through its nationwide network of origination partners, enabling local and regional lenders to close more loans without locking up capital. Toorak Capital Partners’ fully transparent credit standards ensure predictable credit decisions, meaning originators will not waste time on unqualified borrowers. For lenders, particularly those who already offer multifamily term loans, this creates a pipeline of new term loan opportunities as borrowers refinance in 12-24 months once the properties stabilize.
“There are over ten million multifamily properties in the US with less than 20 units. Half of those properties were built before 19801. Given the shortage of quality housing options across the US, including affordable housing, rental demand is going to continue to support the renovation and improvement of small-scale multifamily properties. We’re excited to provide the capital that enables multifamily investors to address the housing crisis, while creating jobs and stimulating local economies,” adds Beacham.
Backed by global investment firm KKR, Toorak Capital Partners has revolutionized how real estate investors access capital. The firm was the first to link small-balance commercial and residential originators with institutional capital. Toorak Capital Partners perfected this approach in the single-family residential bridge lending space, funding more than $3.0 billion in loans since 2016. The firm also offers, ground-up construction loans and single family rental term loans.
To learn more about Toorak Capital Partner’s multifamily bridge loan program, please contact Devang Patel at email@example.com or (212) 461-4135.
About Toorak Capital Partners
Founded in 2016, Toorak Capital Partners is a leading investment manager dedicated to investing in small balance business purpose residential, multifamily and mixed-use loans throughout the U.S. and the United Kingdom. Headquartered in Summit, N.J., Toorak Capital Partners acquires loans from leading loan originators and manages all aspects of its investment portfolio, including loan sourcing, pricing, underwriting, acquisition, and asset management. Toorak Capital Partners’ principals have a deep understanding of mortgage credit in the residential and commercial space with backgrounds in real estate lending, capital markets, securitization, asset-liability management, asset management and credit. Toorak Capital Partners-funded projects have renovated or stabilized housing for more than 9,000 families to date – an average of more than 500 families every month. Further information is available at www.toorakcapital.com.
1 National Multifamily Housing Council: https://www.nmhc.org/research-insight/quick-facts-figures/quick-facts-apartment-stock/