New York Mortgage Trust Secures Complete Ownership of Constructive Loans Through Recent Acquisition
In a strategic move to expand its presence in the residential credit market, New York Mortgage Trust (NYMT) has announced the acquisition of Constructive Loans, LLC. The deal, made through a wholly owned subsidiary, brings together two companies with a shared philosophy of strong credit underwriting.
Constructive Loans, a leading originator of business purpose loans for residential real estate investors, has been operating independently since its founding in 2017. The company has originated over $1.7 billion in business purpose loans, catering to the growing financing needs of single-family investors.
The acquisition enhances NYMT's position in the residential credit market, providing it with access to Constructive's proprietary origination channels and extensive distribution network. For Constructive, the deal offers enhanced resources, including financial and operational support, potentially strengthening its origination capabilities.
Both parties stand to benefit from the acquisition. For NYMT, the acquisition expands its market share, diversifies its revenue streams, and strengthens its earnings potential. By leveraging Constructive's strong performance, NYMT could potentially stabilize and increase its dividend yield, appealing to income-focused investors.
For Constructive, maintaining its independence with its existing leadership team ensures continuity and the potential for further growth. The partnership could lead to additional growth opportunities within the business purpose loan sector, benefiting from NYMT's established reputation and resources.
Ben Fertig, President of Constructive, expressed his excitement about joining NYMT, stating, "We are thrilled about this opportunity to bring the next level of growth in Constructive's origination of high-quality business purpose loans."
Jason Serrano, CEO of NYMT, expressed his pleasure at the acquisition, stating, "This acquisition supports our strategy to diversify and scale our earnings, and we are excited about the potential it holds for both our companies."
The transaction was advised by BTIG as the exclusive financial advisor. Mayer Brown served as M&A counsel, and Vinson & Elkins acted as tax and employment counsel to NYMT in connection with the transaction.
With this acquisition, NYMT aims to further elevate the value delivered to Constructive's clients, setting a stage for future growth in the residential credit market.
The acquisition of Constructive Loans by New York Mortgage Trust (NYMT) will provide NYMT with access to Constructive's proprietary origination channels and extensive distribution network, potentially strengthening its financial position in the residential credit market. For Constructive, the deal offers enhanced resources, including financial and operational support, which could potentially strengthen its origination capabilities and cater better to the growing financing needs of single-family investors.
