Redwood Trust Acquires CoreVest American Finance Lender

Phil Hall

Oct 14, 2019

Redwood Trust Inc. has announced its acquisition of CoreVest American Finance Lender LLC, an originator and portfolio manager of business-purpose residential loans.

The acquisition includes the CoreVest operating platform and more than $900 million of related financial assets. Consideration for the acquisition is approximately $490 million, net of in-place financing on the financial assets, and Redwood stated it would fund the transaction with a mix of cash on hand and shares of Redwood stock. CoreVest is being acquired from affiliates of Fortress Investment Group's credit funds business and CoreVest Management Partners LLC.

Founded in 2014 and based in Irvine, Calif., CoreVest focuses on the single-family rental (SFR), single-family bridge, and small-balance multifamily loan markets. Since its inception, the company has funded more than $4 billion in loans, including more than $1.1 billion in 2019, year-to-date. It is also an active securitization issuer, having recently completed its ninth SFR securitization since inception.

“Integrating the CoreVest operations and suite of products with our own market-leading consumer mortgage banking and securitization platform will create the preeminent specialty finance operator in our industry,” said Christopher Abate, Redwood's CEO.

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