Rithm Capital preps $371 million single-family rental securitization

The newly rebranded firm tops its first SFR deal

Rithm Capital preps $371 million single-family rental securitization

Rithm Capital (formerly New Residential Investment Corp.) is prepping a single-family rental securitization valued at $371 million.

According to Moody’s, the securities are backed by one loan secured by mortgages on a pool of 1,404 single-family rental properties, managed by RENU Property Mgt. The rating agency placed preliminary AAA ratings on the transaction.

“The transaction’s AAA advance rate (the ratio of senior certificate to the Moody’s Value) is 39.21%. Moody’s uses the advance rate to determine whether the asset value is sufficient to support a targeted rating level given the size of the transaction’s liabilities. As a percentage of the BPO value, the advance rate is 33.00%,” Moody’s wrote in its report.

Read more: New Residential Corp. in major rebranding and restructuring

Before changing its name, New Residential issued a $267.8 million deal backed by 1,200 properties in January. By the end of the first quarter, Rithm’s real estate investment trust had acquired 3,285 properties.

The firm announced its rebranding to Rithm in June, as well as a major restructuring in its management operations.

“We have changed dramatically since our inception, from an owner of MSR assets to a company with complementary operating companies and a unique portfolio of investments,” said Michael Nierenberg, chairman, CEO, and president of Rithm. “The new name and brand help distinguish us from our operating companies, including Newrez, and reflect our culture, team and ambitions for growth beyond residential mortgages.”

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