Angel Oak Capital Advisors, (Angel Oak Capital) has completed AOMT 2020-SBC1, a USD164.3 million securitisation backed entirely by small-balance commercial loans originated by an affiliate of Angel Oak Capital. The securitisation was rated by DBRS and the senior AAA tranche was oversubscribed.
“The completion, and success, of this securitisation is a testament to our firm’s commitment and prudent approach to this specific area of the commercial real estate market, where we see great opportunity to provide value to both borrowers and investors,” says Ben Easterlin, managing director for Angel Oak Commercial Lending.
AOMT 2020-SBC1 consists of 236 loans across all asset classes of commercial real estate. The loans are predominantly geared toward commercial properties including light industrial, office, mixed use and retail. In addition, a third of the loans have residential components that include multifamily, duplex and triplex living spaces, and mobile home parks. The portfolio had an average loan-to-value ratio of approximately 61 per cent and a debt service coverage ratio of 1.50.
“We’ve found notable success in our vertically integrated model, where we can control all aspects of the process from origination to securitisation for residential mortgages,” says Berkin Kologlu, senior portfolio manager. “We have applied this same model to the commercial sector in order to continue offering attractive opportunities like this to investors in the future.”
Concurrent with this securitisation, Angel Oak Commercial Lending recently hired two industry veterans, Nik Chillar and Rick Gallitto, who will assist Easterlin in expanding the business as co-presidents at the firm. Angel Oak Commercial Lending is actively originating new loans and enhancing its current practices and staff under Chillar and Gallitto’s oversight.