Summit-based Toorak hits $10B milestone in capital provided for housing rehab/construction

In 2016, Summit-based Toorak Capital Partners‘ founder, John Beacham, took note that the home renovation market was largely ignored by lending institutions and launched the firm as a way to bring reliable capital to local investors.

To date, Toorak has funded $10 billion in whole loans since its inception and more than 26,000 small-balance business-purpose loans backed by residential, multifamily and mixed-use properties across the U.S. and the U.K., enabling the construction, renovation or purchase of over 50,000 rental and owner-occupied units.

“We’re extremely proud of the progress we’ve made as a company, and excited to reach this groundbreaking milestone,” Beacham stated. “When we first started Toorak, we saw an opportunity to provide stable, long-term capital to a fragmented industry with a lack of efficient financing alternatives, and to address the national housing shortage by enabling investors to bring units to the market. This achievement is a testament to the hard work of our entire team and the originators we work with.”

By strategically partnering with lenders who originate high-credit standard loans, and then using institutional capital to acquire the loans shortly after origination, Toorak frees up originator capital, enabling them to make more loans to other small businesses. Toorak then funds these loans in the capital markets while retaining credit risk, generating more capital to fund more loans.

With capital commitments from entities managed by KKR, a leading global investment firm, Toorak has revolutionized the way business-purpose residential real estate lenders access capital. Toorak was the first to link small-balance commercial and residential originators with institutional capital and has perfected this approach in the single-family residential bridge, multifamily bridge and 30-year single family rental lending space.

“Toorak’s growth is a testament to John and the team’s success at building a leading real estate loan investment platform and substantially improving financing options in the real estate mortgage market,” Avi Korn, managing director at KKR, stated. “We are proud of this $10 billion milestone for the company and look forward to celebrating many future milestones together.”