Axonic Capital announced the closing of its first proprietary securitization, GSF-AXMF1, under the firm’s five-year fixed-rate permanent financing program. The securitization totals more than $400 million across 47 loans spanning 22 states and marks a significant milestone for the alternative investment manager’s multifamily lending platform.
The AXMF1 portfolio features a weighted average loan-to-value ratio of 68.13% and a projected internal rate of return of 18.5% to the retained position. Axonic said its multifamily financing program has already closed and committed more than $900 million of assets and is targeting over $2 billion of originations this year.
According to the company, the securitization enhances its ability to provide an integrated lending process encompassing loan origination, underwriting, and securitization. The approach is intended to provide borrowers with a more efficient source of financing for stabilized multifamily properties compared with traditional lenders.
Axonic noted that the pullback in multifamily lending by banks and government-sponsored enterprises has created opportunities for alternative lenders. The company said it has focused on providing customized financing solutions while assembling a diversified portfolio of stabilized Class B workforce housing assets backed by experienced sponsors.
CBRE, Walker & Dunlop, Greystone, and Northmarq served as origination partners for the AXMF1 securitization, while Grant Street Funding acted as securitization partner.
Founded in 2010, Axonic Capital is a New York-based alternative investment manager with approximately $8 billion in assets under management and specializes in structured credit and commercial and residential real estate debt and equity investments.
KEY QUOTES:
“As the multifamily lending space continues to see pullback from banks and government-sponsored enterprises, alternative lenders like Axonic have stepped in to provide the financing needed to push projects forward while finding creative ways to deliver alpha to our investors. Our team nimbly adapted to a volatile rate environment and quickly evolving multifamily lending market to provide borrowers with bespoke, value additive lending solutions, allowing us to assemble this diversified, high-quality pool of assets.”
Jonathan Salter, Principal And Head Of Commercial Real Estate Lending, Axonic Capital
“The AXMF1 portfolio reflects our core investment thesis, which focuses on stabilized Class B multifamily assets backed by experienced sponsors with demonstrated operational track records. The securitization’s close demonstrates the strong momentum in Axonic’s multifamily permanent financing program, which further solidifies Axonic’s long-standing position as an innovative, collaborative lender on these workforce multifamily projects.”
Jonathan Salter, Principal And Head Of Commercial Real Estate Lending, Axonic Capital
