The firm grows its underwriting team to support the program expansion
Toorak Capital Partners has expanded its small-balance multifamily bridge loan program to offer more financing options to the multifamily market.
The company finances multifamily originators on a correspondent basis through its nationwide network of origination partners. Toorak said it aims to enable local and regional lenders to close more loans without locking up capital.
“Multifamily investors seeking to purchase and renovate multifamily properties using loans of up to $10 million have very few capital sources available,” said Toorak Capital Partners CEO John Beacham. “Once they’ve stabilized the property, multifamily term loans are widely available, but securing the initial capital to purchase, renovate and stabilize a small multifamily property can be very difficult.”
Additionally, Toorak increased its underwriting and support staff to keep up with the program expansion.
“There are over 10 million multifamily properties in the US with less than 20 units,” Beacham said. “Half of those properties were built before 1980. Given the shortage of quality housing options across the US, including affordable housing, rental demand is going to continue to support the renovation and improvement of small-scale multifamily properties. We’re excited to provide the capital that enables multifamily investors to address the housing crisis while creating jobs and stimulating local economies.”
The firm has already funded more than $550 million in small-balance multifamily bridge loans and has committed around $1 billion in capital to purchase multifamily bridge loans from originators next year. Toorak also offers ground-up construction loans and single-family rental term loans.