Genesis Capital (a Rithm Capital company), a leading business-purpose lender offering innovative financing 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 closed NRMLT 2024-RTL2, a $450 million rated securitization backed by residential transitional loans (RTLs).
As Genesis’s second-rated RTL securitization, the deal received strong support from the investment community, including multiple repeat participants from Genesis’ first-rated securitization.
This deal marks the second-largest rated residential transitional loan securitization, surpassed in size only by the company’s April 2024 close of the largest-ever rated RTL securitization (NRMLT 2024-RTL1), extending Genesis’ track record of executing novel and innovative transactions. And it is also the first rated RTL securitization in the industry to feature a three-year term, granting Genesis more financial flexibility and tapping a longer tenor investor base. The securitization brings Genesis’ total issuance to over $1 billion, enabling Genesis to compete more effectively in the industry and solidifying its position as a clear leader in the RTL sector.
The deal’s structure featured four classes of offered bonds ranging from single A rated to single B rated bonds.
Goldman Sachs led the offering and served as an initial purchaser along with Deutsche Bank Securities, Morgan Stanley, Nomura, and Performance Trust.
KEY QUOTES:
“This has been a transformative year for the residential housing sector, and this transaction further solidifies our commitment to being a leading partner in financing development across the industry. Following the successful close of our second rated RTL securitization, Genesis now has nearly $1 billion of active rated securitization capacity – more than any lender in the space. With the support of our capital markets partners and investors, along with the backing of our parent company Rithm Capital, we will be able to leverage our disciplined underwriting process, talented and dedicated team, and unwavering commitment to maintaining strong credit quality across our portfolio to provide unparalleled support to our clients and continue to grow the business.”
-Clint Arrowsmith, President and CEO of Genesis
“This transaction is an important step in our commitment to expand capacity in the burgeoning business purpose lending sector through our market leading, sponsor-driven Genesis platform. This offering will further enhance Genesis’ ability to provide innovative, tailored capital solutions to high-quality developers. As demonstrated by its track record of completing pioneering rated securitizations, the team has done an outstanding job scaling the platform to bring more capital into the residential ecosystem, and we look forward to supporting the Genesis team in meeting strong nationwide demand for residential construction and renovation financing.”
-Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital
