The JV will originate multifamily bridge, build-for-rent, and single-asset bridge loans
Redwood Trust and funds managed by Oaktree Capital Management have formed a joint venture focused on business purpose bridge loans, the companies announced this week.
The companies said in a release that the JV has the “potential to finance over $1 billion of newly-originated bridge loans, inclusive of proceeds from secured financing.” Oaktree funded 80% of the total equity commitment, and Redwood contributed 20%.
The loans will be largely originated by CoreVest American Finance Lender, a division of Redwood that finances multifamily bridge, build-for-rent, and single-asset bridge loans. The joint venture, which has a three-year reinvestment period, will finance its portfolio with warehouse facilities that may be refinanced through securitizations or longer-term credit facilities.
“We are pleased to be partnering with Oaktree, a premier global investment manager, in a joint venture that will enhance our ability to provide solutions to a broad spectrum of real estate investors at an important point in the housing cycle,” said Redwood president Dash Robinson. “We continue to see immense opportunity for our bridge lending platform, particularly as other lenders reduce their footprint. The JV allows us to efficiently leverage our own investment capital and serve our customers in expanded ways.”
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“We are thrilled to partner with Redwood and CoreVest in a win-win-win structure maintaining credit availability for residential borrowers, providing reliable capital to support originations growth, and enabling differentiated access to an attractive asset class for our investors,” said Dante Quazzo, vice president in Oaktree’s Global Opportunities strategy. “We have long been impressed with the quality of CoreVest’s operations, underwriting, sponsor relationships, and distribution network. Housing affordability is top of mind for many Americans, and this partnership creates opportunity for Oaktree to invest alongside a top-tier business purpose lender while supporting new and improved housing stock.”
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