Axonic Closes $400 Million Multifamily Securitization

The firm’s proprietary securitization program has closed and committed north of $900 million of assets

Increasing scale positions the program to hold a wider range of debt instruments spanning the full RE lifecycle

NEW YORK--(BUSINESS WIRE)--Axonic Capital (“Axonic”), an alternative investment management firm specializing in structured credit and commercial and residential real estate debt and equity, has announced the close of its first proprietary securitization, GSF-AXMF1 (“AXMF1”), under its 5-year fixed rate permanent financing program.

AXMF1’s securitization totals more than $400 million across 47 loans in 22 states, with a weighted average LTV of 68.13% and a projected IRR of 18.5% to the retained position. The program maintains a significant pipeline and is targeting north of $2.0 billion of originations this year.

The successful securitization of the AXMF1 pool represents a significant milestone for the Axonic Multifamily lending program by enabling the firm to deliver a fully integrated process, from origination of the loans to the underwriting and securitization. Specifically, this allows Axonic to provide a stabilized multifamily product that from a borrower’s point of view is more efficient than other traditional sources of financing.

“As the multifamily lending space continues to see pullback from banks and government-sponsored enterprises, alternative lenders like Axonic have stepped in to provide the financing needed to push projects forward while finding creative ways to deliver alpha to our investors,” said Jonathan Salter, Principal and Head of Commercial Real Estate Lending at Axonic. “Our team nimbly adapted to a volatile rate environment and quickly evolving multifamily lending market to provide borrowers with bespoke, value additive lending solutions, allowing us to assemble this diversified, high-quality pool of assets.”

“The AXMF1 portfolio reflects our core investment thesis, which focuses on stabilized Class B multifamily assets backed by experienced sponsors with demonstrated operational track records. The securitization’s close demonstrates the strong momentum in Axonic’s multifamily permanent financing program, which further solidifies Axonic’s long-standing position as an innovative, collaborative lender on these workforce multifamily projects.”

CBRE, Walker & Dunlop, Greystone and Northmarq served as origination partners for the AXMF1 securitization, and Grant Street Funding served as securitization partner.

About Axonic Capital
Founded in 2010, Axonic Capital is a New York-based alternative investment manager with approximately $8 billion in assets under management. The firm has deep expertise in structured credit and commercial and residential real estate debt and equity. Axonic’s flexible capital base includes private limited partnerships, separate accounts, insurance company mandates, and publicly listed fund structures. For additional information, visit axoniccap.com.