#United States #New York #Securitization #DBRS #Roc360

Roc360 Closes $200 Million Residential Bridge Loan Securitization

On March 18, 2025, Roc Capital Holdings LLC, commonly known as Roc360, announced the successful closing of a significant securitization deal totaling $200 million involving residential transitional loans (RTLs). This development highlights Roc360's position as a dominant player in the residential real estate financing landscape. The securitization, dubbed Roc Mortgage Trust 2025-RTL1, has garnered substantial interest, and the structuring of the deal was handled meticulously to ensure optimal participation.

Strong Demand From Institutional Investors

Andrew Whelan, the President of Roc360 REIT, expressed enthusiasm about the high demand for this securitization. The transaction was oversubscribed, indicating a robust appetite among institutional investors for the notes issued. The securitization was structured as a syndicated revolving securitization, which allows for the injection of new loans over a two-year period, thus providing flexibility for Roc360’s lending operations.

The notes offered in this securitization comprise approximately $190 million divided among two senior classes and two mezzanine classes, which serve as an effective means of utilizing investor capital while maintaining protective features against market fluctuations. The mortgage pool includes performing, fixed-rate, interest-only, first-lien loans that cater to real estate investors focused on transitional one-to-four-family units, multifamily, and mixed-use properties.

Comprehensive Credit Enhancement

Roc360’s securitization deal incorporates robust credit enhancements designed to fortify the overall transaction's integrity. Methods such as subordination, overcollateralization, and an excess spread contribute to the credit ratings assigned by DBRS Morningstar. The structured nature of this transaction not only shields the investment but also promotes confidence among stakeholders.

In handling the securitization, Nomura Securities International, Inc. acted as the sole lead structuring agent, with Morgan Stanley Co. LLC taking on the role of joint bookrunner and co-lead manager. The collaborative effort emphasizes the financial expertise required to navigate such significant transactions in today's dynamic real estate market.

Roc360's Investment Philosophy and Future Outlook

Founded in 2014, Roc360 has established itself as a vertically integrated platform in residential real estate financing. The company specializes in catering to professional real estate investors by providing a variety of financial solutions, including loan origination, underwriting, servicing, and risk management, all backed by proprietary technology and data analytics. To date, Roc360 and its acquired brands have funded over $28 billion in loans across the United States, fueling growth and ensuring reliable capital flow for investors in transitional real estate.

As Roc360 continues to grow, it aims to enhance its offerings through data-driven approaches for risk assessment and asset optimization. This focus not only strengthens their market position but also reflects their commitment to innovating within the financial services sector. By leveraging technology and comprehensive services, Roc360 empowers its network of private lenders, borrowers, and institutional partners, providing a reliable framework for success in real estate investment.

Conclusion

The closing of this $200 million securitization is a testament to Roc360’s strategic approach and operational excellence in the competitive landscape of residential real estate financing. As the company looks towards the future, its comprehensive suite of services and innovative practices are set to redefine the standard for financial solutions in the residential sector. For more information about Roc360 and their services, please visit their website at www.roc360.com.