Key facts
- Archwest Capital closed a $300 million rated securitization backed by residential transition loans.
- The transaction, Archwest Mortgage Trust 2026-RTL2, is Archwest's third rated securitization in less than a year.
- The deal brings Archwest's total program issuance to $875 million.
- The securitization attracted more than $1 billion in investor interest.
- Archwest provides business-purpose financing secured by residential, multifamily and mixed-use properties.
Archwest Capital announced on Wednesday that it has closed a $300 million rated securitization backed by residential transition loans (RTLs), marking its third rated transaction in less than a year. The transaction, Archwest Mortgage Trust 2026-RTL2, brings the company’s total issuance through the program to $875 million. Investor demand for the latest securitization exceeded the available supply, with more than $1 billion in investor interest and new institutional investors joining the company’s capital markets platform, Archwest said.
Shawn Miller, Archwest’s founder and CEO, stated that the deal is a "defining milestone" for the company and reflects its rapid development of an "institutional-scale capital markets program." Archwest provides business-purpose financing secured by residential, multifamily and mixed-use properties, including fix-and-flip, bridge, construction, rental, and multifamily loans.
The 2026-RTL2 transaction is initially backed by 218 residential transition loans with an aggregate principal balance of about $217.3 million, along with roughly $98.5 million in an accumulation account. The securitization features a two-year revolving structure that allows principal repayments from underlying loans to be reinvested in newly originated loans during the reinvestment period, a structure similar to Archwest’s previous rated transactions.
Morningstar DBRS cited the pool’s historical performance, loan paydowns and payoffs, pool composition, and structural enhancements as credit strengths for the 2026-RTL2 transaction. Archwest's inaugural 2025-RTL1 transaction has also fully revolved, with about $300 million in principal repayments reinvested into new collateral during its first year. Kieran Brady, Archwest’s chief financial officer, emphasized the importance of asset quality and performance, noting that the company has had no loan repurchases from its securitizations to date.