Toorak Capital Partners has agreed to sell its lending and securitization platform, as well as rights to service its $3 billion business-purpose loan (BPL) portfolio, to Velocity Financial in a deal destined to shake up the real estate investing landscape.
The all-cash transaction is valued at $63 million and is expected to close in the fourth quarter, according to an investor call hosted by Velocity, a publicly traded real estate financing firm, on Thursday morning.
“We’ve had our eye on the BPL space for a very long time and wanted to make sure we got in with the right partner and the right team, and we think we’ve done that with John Beacham and his team,” said Chris Farrar, CEO of Velocity, who co-founded the company in 2004.
“They’re ...