Kiavi secures $218 million in securitization for real estate investors

Windfall will further aim of revitalizing aging homes nationwide

Kiavi secures $218 million in securitization for real estate investors

Kiavi, a provider of financing to real estate investors, announced this week the successful closing of a $218 million revolving securitization of unrated residential transition loans.

The securities transaction comes on the heels of the company’s market expansion into Alabama, Arkansas and Wisconsin. The transaction represents the ninth syndicated securitization deal sponsored by Kiavi since 2019, officials noted. Moreover, the securitization is said to support $750 million in loan origination, further supporting real estate investors in the revitalization of aged homes nationwide, officials explained.

“This round of securitization is a testament to our leadership position,” Arvind Mohan, Kiavi’s chief operating officer, said. “Executing in today’s challenging market environment demonstrates our investors’ continued confidence in our products and performance, and it extends our position as a leading issuer of RTL products. We are excited to secure the latest round of securitization allowing us to serve our customers with stronger products as they continue to rehabilitate America’s aging housing stock at a time when over two-thirds of US homes are over 30 years old.”

Read more: Kiavi expands into Indiana, Kansas

The transaction is estimated to provide capital to support approximately $750 million in loan originations over the life of the deal and will help real estate investors revitalize aged homes across the country. The $218 million total deal size includes $207 million in offered notes in three classes, A1, A2 and M, all of which were sold. The deal includes a two-year revolving period during which principal payoffs can be reinvested in purchasing additional, newly originated loans.

News of the transaction is the latest development illustrating the company’s brisk growth. In March, the company announced expansion into Indiana and Kansas. CEO Michael Bourque (pictured) told MPA at the time that both have strong rental markets – 45% of all occupied homes in Indianapolis and 36% of all occupied homes in Overland Park are rental properties. Other dynamics that made the expansion appealing were home values in Wichita, Kansas, rising by 12.6% last year and the high ranking assigned to Indianapolis, Ind. as the fourth-best housing market in terms of growth this year.

“We work closely with our customers, and take their feedback into account,” Bourque told MPA at the time. “We had heard from them that these two states in particular were of interest. Market data also shows that both Indiana and Kansas have strong rental and housing markets.”

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Bourque hinted at even further growth: “We are always looking to support our customers,” he said. “As real estate investors continue to revitalize over $25 trillion of aging US housing stock, we will provide them with the capital they need to realize the full potential of their investments. Over time, we expect to serve more customers in more states.”

Indeed, by June 07, Kiavi had confirmed expansion into Alabama, Arkansas and Wisconsin. Kiavi said the expansion further supports REIs in their bid to reinvigorate the country’s aging housing stock. Bourque expounded: “We are thrilled to support real estate investors in Alabama, Arkansas and Wisconsin, helping them revitalize neighborhoods in these markets. All three states provide incredible opportunities for our customers to transform aging homes and make them move-in ready for families and truly impact the local communities,” he said. “We are 5.5 million housing units short in the United States. Current supply chain shortages are already pointing to a slowdown in new construction. With millennials entering their prime home buying years, it is even more important that we, as a nation, work together to close the housing gap and work towards rehabilitating America’s aging housing stock especially at a time when over two-thirds of US homes are over 30 years old. I am excited to extend our products in these three states and I am confident that with our technology platform REIs can make smarter decisions and unlock the true potential of their real estate investments.”

Through the use of its financing and data-driven insights, Kiavi helps real estate investors buy, renovate and sell or rent a home. The company is now operating in 32 states across the US.