Genesis Capital Celebrates Major Milestone in Securitization
Genesis Capital Achieves Remarkable Securitization Success
Genesis Capital LLC, a prominent business purpose lender and a part of Rithm Capital (NYSE: RITM), recently announced the successful closure of NRMLT 2024-RTL2, a substantial rated securitization valued at $450 million. This milestone reflects Genesis' commitment to providing innovative financing options to real estate developers engaged in various residential projects, including acquisition, renovation, and new construction.
Second Rated RTL Securitization Celebrated
This achievement marks Genesis' second rated residential transitional loan (RTL) securitization, receiving robust backing from investors, many of whom also participated in the company's first rated securitization effort. The transaction is particularly noteworthy, sitting as the second largest rated RTL securitization in history, following only Genesis' previous closure of NRMLT 2024-RTL1, the largest in the sector.
Innovative Features of the New Deal
The NRMLT 2024-RTL2 securitization stands out as the first in the industry to offer a three-year term, providing Genesis with enhanced financial flexibility and access to a broader range of investors. This development brings the company's total issuance to over $1 billion, positioning Genesis as a competitive force within the RTL market, reaffirming its leadership in the sector.
Investment Structure Explained
The securitization deal consists of four classes of bonds, rated from single A to single B, illustrating the diverse options available to investors. Leading financial institutions such as Goldman Sachs, Deutsche Bank Securities, Morgan Stanley, Nomura, and Performance Trust played crucial roles in the offering, ensuring a successful outcome for Genesis.
Executive Insights on the Transaction
Clint Arrowsmith, the President and CEO of Genesis, highlighted the transformative nature of the current year for the residential housing sector. He expressed pride in Genesis' ability to close its second rated RTL securitization, illustrating their capacity to leverage nearly $1 billion in active rated securitization potential—more than any other lender in their field. Arrowsmith emphasized the support from capital markets partners and investors, attributing the company's success to its disciplined underwriting process and exceptional team.
Supporting the Growth of Real Estate Financing
Michael Nierenberg, Chairman and CEO of Rithm Capital Corp, elaborated on the significance of this transaction in further amplifying capacity in the growing business purpose lending sector. He acknowledged that the innovative, tailored capital solutions provided by Genesis would greatly benefit high-quality developers, highlighting the team's track record for undertaking groundbreaking rated securitizations.
About Genesis Capital
Genesis Capital serves as a primary partner for real estate investors seeking prompt and innovative financing solutions throughout the lifecycle of their residential projects. With a focus on agility and high-touch customer service, the company capitalizes on its extensive expertise, proprietary data, and strong borrower relationships. Headquartered in Sherman Oaks, California, Genesis boasts over 140 dedicated employees.
About Rithm Capital
Rithm Capital Corp. is a leading asset manager specializing in real estate and credit financial services. The firm operates several wholly-owned businesses, including Genesis Capital LLC. Since its inception, Rithm has been dedicated to generating attractive risk-adjusted returns, successfully delivering approximately $5.4 billion in dividends to its shareholders over the years. They maintain operations aligned with real estate investment trust (REIT) qualifications for federal tax purposes and are based in New York City.
Frequently Asked Questions
What is NRMLT 2024-RTL2?
NRMLT 2024-RTL2 is a $450 million rated securitization of residential transitional loans closed by Genesis Capital LLC.
What is the significance of this securitization for Genesis?
This securitization is significant as it enhances Genesis's capacity to provide innovative financing solutions in the residential sector.
How many rated securitizations has Genesis completed?
Genesis has completed two rated RTL securitizations, including the recently closed NRMLT 2024-RTL2.
What does this mean for Genesis's position in the market?
This achievement solidifies Genesis's position as a leader in the residential transitional loan market, with over $1 billion in total issuances.
Who led the recent securitization deal?
The offering was led by Goldman Sachs, along with significant participation from other major financial institutions.
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