Angel Oak Capital Advisors Announces $90 Million Securitization of Residential Transitional Loans
Angel Oak Capital Advisors, LLC (“Angel Oak”) announced today that it has completed AOMT 2018-PB1, a $90 million securitization backed by loans originated by Angel Oak Prime Bridge (“Prime Bridge”), the firm’s affiliated direct investment property lender. This is Angel Oak’s sixth mortgage securitization since 2015, bringing the total to more than $900 million.
The securitization, believed to be the first of its kind, consists of “fix-and-flip” loans issued by Prime Bridge to residential real estate investors. The securitization features an 18-month revolving period in which paid collateral is replaced with new collateral. The average loan balance in the securitization is $199,052, with original terms between six and 12 months.
“Investors are attracted by this product and its unique structure. The short-term nature of the collateral paired with an attractive yield makes for a rare opportunity in today’s investing climate,” says Angel Oak Co-CEO and CIO Sreeni Prabhu. “But most importantly, investors understand the Angel Oak story by now. Our affiliated mortgage companies’ expertise in quality origination gives investors confidence that our securitizations are backed by loans underwritten to specific guidelines. We believe we have one of the most diverse securitization platforms in the industry.”
Prime Bridge, which started operations in 2011, provides an alternative to private/hard money and commercial bank loans for fix-and-flip residential real estate investors, most of whom renovate properties.