Archwest Capital's $300 Million Securitization Fuels Growth
Archwest Capital Completes Major Securitization
Archwest Capital LLC, a prominent private lender focusing on residential real estate investments, has successfully concluded its inaugural rated securitization known as Archwest Mortgage Trust 2025-RTL1. This significant financial milestone involves residential transition loans totaling $300 million, greatly expanding the company's capital opportunities.
Enhancing Liquidity and Investor Confidence
The recent transaction marks a crucial moment for Archwest's capital markets strategy. It not only broadens the firm's access to institutional investors but also enhances liquidity for its rapidly expanding lending services. Notably, this offering was oversubscribed by nearly five times, showcasing a strong institutional desire for high-quality business-purpose loan assets. This reflects Archwest's carefully managed underwriting and consistent performance in the financial sector.
Archwest's Commitment to Investors
CEO and Founder Shawn Miller expressed the importance of such securitizations in their growth strategy, stating: "As we continue expanding our lending footprint nationwide, securitizations like these enhance our ability to deliver certainty and scale for real estate investors. Our borrowers depend on speed, reliability, and consistency of execution." This transaction further solidifies the company's dedication to these principles across various market conditions.
Structural Highlights of the Securitization
Archwest's securitization consists of notes issued through four classes (A1, A2, M1, M2), all rated by DBRS Morningstar. The initial pool of collateral included 318 residential transition loans with an aggregate unpaid principal balance of approximately $274 million, supported by a cash accumulation account of $41 million.
Flexible Funding Mechanisms
The securitization is structured to feature a two-year revolving period. This allows for principal payoffs on underlying loans to be reinvested into newly originating collateral, thus providing substantial funding flexibility and scalability for Archwest's platform. Critical credit protections include subordination, overcollateralization, and excess spread, while a Pre-Funding Interest Account ensures timely payments during the transaction's early months.
Record-Setting Growth Amid Securitization
In a year characterized by significant achievements, Archwest Mortgage Trust 2025-RTL1 caps a record-breaking time for Archwest, which has recently surpassed $1 billion in cumulative loan originations. The company is well-positioned to exceed $2 billion by the end of the year, having originated more than $1.5 billion across various types of loans, including fix-and-flip, ground-up construction, and DSCR loans across 44 states. In 2024, Archwest notably received a major growth investment from Bain Capital, further enhancing its innovative offerings for borrowers and partners.
Strengthening the Platform for Investors
CFO Kieran Brady commented, "Closing our inaugural rated securitization amid a year of record growth marks a pivotal milestone for Archwest. By deepening our capital and attracting a diversified investor audience, we're strengthening our platform to support professional builders, developers, and investors that drive the housing supply forward in the country." This illustrates Archwest's commitment to being a reliable partner in the evolving real estate market.
About Archwest Capital
As a leading private lender, Archwest Capital focuses on providing tailored financing options to investors and builders involved in a variety of real estate projects. With over $1.5 billion in originated loans, its reputation for speed and transparency makes it a trusted ally for experienced investors committed to the vital task of enhancing housing availability in the nation.
Frequently Asked Questions
What is Archwest Capital known for?
Archwest Capital is renowned as a leading private lender specialized in financing for residential real estate investors, known for its speed and reliability.
What was the total amount of the securitization completed?
The total amount of the securitization completed by Archwest Capital was $300 million.
What kind of loans does Archwest offer?
Archwest offers a diverse range of loans, including fix-and-flip, ground-up construction, DSCR, bridge, and rental portfolio loans.
Who served as joint bookrunners for the securitization?
Goldman Sachs and Barclays acted as joint bookrunners for the recent securitization transaction.
How does Archwest maintain its competitive edge?
Archwest maintains its edge through disciplined underwriting practices, market expertise, and a consistent commitment to providing excellent client experiences.
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