Genesis Capital Closes Largest Ever Residential Transition Loan

Giving Received Wide Participation From 46 Investors

NEW YORK, April 09, 2024–(BUSINESS WIRE)–Genesis Capital LLC (“Genesis”), a leading commercial purpose lender that provides innovative debt solutions to professional real estate developers for new acquisition, renovation, foundation construction, and long-term lease projects across the spectrum of housing, today announced that it has completed an estimated $500 million securitization backed by residential transition loans (“RTL”). The transaction, which received support from 46 investors, represents the largest rated residential transition loan acquisition ever and the first rated transaction focused on core construction.

The program structure consisted of three levels of bonds issued ranging from A (low) rated to BB (low) rated bonds.

Goldman Sachs led the offering and served as the initial buyer along with Deutsche Bank Securities, Morgan Stanley, Nomura, and Performance Trust.

“With the successful closing of the largest rated RTL, institutional investors can now participate in the RTL market. This is an exciting time for the residential real estate industry, and we are confident that the support of parent company Rithm Capital Corp. ., our strong underwriting process, our deep and talented team, and our commitment to maintaining consistent loan quality across our portfolio have positioned us well to take advantage of the many opportunities ahead,” said Clint Arrowsmith, President of Genesis. “This transaction will provide additional capital for the next phase of Genesis’ growth and will enable us to build on our extensive track record of partnering with leading, innovative development professionals employed to support construction and renovation projects in the residential sector.”

“This transaction is an important step in our commitment to expand the startup capabilities of the Rithm platform,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital Corp (“Rithm”). “The offering will enhance Genesis’ ability to provide innovative, targeted capital solutions for high-quality developers. Genesis is at a key position in the residential real estate value chain, and we look forward to continuing to work with their team to meet nationwide .requirements for housing construction and rehabilitation financing.”

This press release does not constitute an offer to sell or a solicitation of an offer to buy nor will there be any sale of these securities in any jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws. of that authority.

ABOUT START-UP CAPITAL

Genesis Capital is the preferred partner for professional real estate investors looking for fast and innovative financing solutions that support the complete life cycle of their residential projects. The company leverages its expertise, proprietary data and long-term borrower relationships to provide agility and speed as well as reliable, integrated high-touch customer service. Headquartered in Sherman Oaks, California, Genesis has more than 140 full-time employees today.

ABOUT RITHM CAPITAL

Rhythm Capital Corp. (NYSE: RITM) is a global asset manager focusing on real estate, credit and financial services. Rithm makes direct investments and operates many wholly owned businesses. Rithm’s businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC, and Genesis Capital LLC, a leading mortgage origination and servicing platform. Rithm aims to provide attractive risk-adjusted returns in market cycles and interest rate environments. Since inception in 2013, Rithm has paid out approximately $5.0 billion in dividends to shareholders. Rithm is organized and conducts its business to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking statements relating to Genesis within the meaning of the Personal Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond Genesis’ control. Genesis’s future expectations must involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. The forward-looking statements contained herein speak only as of the date hereof, and each of Genesis and Rithm expressly disclaims any obligation to publicly release any updates or revisions to the forward-looking statements contained herein to reflect any changes in expectations with respect thereto or. changes in events, circumstances or circumstances on which any statement is based. New risks and uncertainties arise from time to time, and it is impossible for Genesis or Rithm to predict or evaluate the effect of every factor that could cause their actual results to differ from those contained in any forward-looking statements.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20240409467613/en/

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The media
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