Dechert Advises Toorak Capital Partners on RTL Securitization Backed by Multifamily and Mixed-Use Properties

Dechert advised Toorak Capital Partners LLC (Toorak), a leading capital provider to the private real estate lending industry, on the successful closing of Toorak Mortgage Trust 2024-2 (TRK 2024-2), its first residential transition loan (RTL) securitization with an initial portfolio solely backed by loans secured by small balance multifamily and mixed-use properties.

TRK 2024-2, an unrated US$166 million deal, was backed by an initial collateral pool of 98 RTL loans that financed approximately 1,367 multifamily units.

Performance Trust Capital Partners, LLC led the offering and served as an initial purchaser along with Deutsche Bank Securities Inc., KKR Capital Markets and Morgan Stanley & Co. LLC.

Toorak has issued US$3.89 billion in securitizations across 15 deals to date, including two rated and nine unrated revolving transactions backed by RTL loans, and four rated transactions backed by DSCR long-term investor loans on rental properties.

The Dechert team advising Toorak Capital Partners included global finance partners Linda Ann Bartosch and Ralph Mazzeo, along with associates Matthew Haas, Turner Smith and Tianna Larson; and tax special counsel Steven Kolias.

Earlier this year, Dechert advised Toorak on its successful closing of Toorak 2024-RRTL1, the first-ever rated residential transition loan securitization. Dechert also counselled Toorak on the close of Toorak 2024-RRTL2, the company's second rated residential transition loan securitization.

About Dechert

Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital - from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients' rights in extreme situations. Our nearly 1,000 lawyers across 20 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology.