Kiavi, a real estate investor (REI) financing provider, announced today closing a $271 million revolving securitization of unrated residential transition loans, according to a press release shared with FinLedger.
The financing is the eighth broadly syndicated securitization transaction sponsored by Kiavi since 2019, includes a two-year revolving period and will provide capital to support approximately $750 million in loan originations over its life.
This is the first time Kiavi has sold its residual interest, and the company’s first deconsolidated deal. As opposed to retaining the bottom 5% of the transaction as sponsor, Kiavi sold the bottom 95% of the residual class to an institutional. It says this demonstrates the strength of its underlying collateral and desire for investors to be involved in its asset class and securitization.
“Kiavi is very pleased with the outcome of our latest financing, especially in executing our first residual sale,” said Arvind Mohan, Kiavi’s chief operating officer. “Executing in today’s market environment demonstrates our investors’ continued confidence in our product and performance.”
As a REI financing provider, Kiavi offers bridge loans, also called “fix-and-flip” loans, to offer flexible, short-term financing for the purchase and rehabilitation of investment properties. The company also provides rental loans as a long-term financing option for REIs that are interested in property appreciation and rental income.
The company also recently expanded to Indiana and Kansas as part of a midwest expansion. It says it is focusing on these areas due to increased focus by out-of-state investors and significant potential for returns.
Barclays Capital Inc. was the sole structuring agent of the securitization, and joined Nomura Securities International and Performance Trust Capital Partners as joint bookrunners and co-lead managers.
In other recent proptech news, Jeff Corn discusses Virtuance‘s recent acquisition by Diakrit and the growing importance of digital assets in real estate. Dwellwell also emerged from stealth with a $12 million seed round for its property “Check Engine Light” AI sensor technology.