Redwood Trust, Inc. providing access to housing for homebuyers and renters, recently said it has entered into a definitive agreement to acquire Riverbend Funding, LLC and its subsidiaries (“Riverbend”), a private mortgage lender to residential transitional and commercial real estate investors, in an all-cash transaction, according to a release from Redwood Trust.
The addition of Riverbend complements Redwood’s existing business purpose mortgage banking platform, CoreVest American Finance Lender, LLC (“CoreVest”), enhancing CoreVest’s suite of products, geographic and production footprint, and client base. Following the close of the acquisition, Riverbend will be integrated into CoreVest.
Co-founded in 2017 by Emilian Halloran, Sean Robbins and Brian Burke, Riverbend is a bridge lender providing financing to experienced real estate investors acquiring residential and multifamily transitional properties with plans to rehabilitate and sell, as well as to professional developers in multifamily properties. Riverbend’s executive leadership team plans to remain with the business following the completion of the transaction.
“We are thrilled to announce the acquisition of Riverbend, further demonstrating our commitment to strategically growing our mortgage banking platforms in a manner that benefits our partners,” Redwood Chief Executive Officer Chris Abate said in the release. “Riverbend’s platform adds a complementary product and geographic footprint to CoreVest’s existing business. The market for bridge loans continues to be exceptionally strong, supported by increasing sales of newly constructed and rehabilitated homes amidst shrinking housing inventory.
“This acquisition enhances our scale in this market, and we believe that our existing partners will benefit from the products, experience, and strategic lift that Riverbend brings to CoreVest,” Abate added.
“We look forward to working together with Emilian, Sean and the talented team at Riverbend,” CoreVest Chief Executive Officer Beth O’Brien said. “Riverbend adds a first-class origination team with a track record of high-touch service and attractive funding times as well as seasoned experience in underwriting and sourcing. The Riverbend team has also been very successful in distributing their loans efficiently through capital markets executions. Riverbend’s experience will be additive to our existing business purpose mortgage banking platform and distribution capabilities as we continue to capture share in this growing market.”
Robins noted since inception, Riverbend has been committed to providing innovative lending options, putting our borrower needs first and closing on deals with service and speed.
“CoreVest shares these values and joining forces with CoreVest will help us provide greater financing options for our partners, drive overall productivity and enhance our efficiency. The opportunity we see together is significant,” he said. We look forward to working together and executing on our shared vision of providing best-in-class financing, service and products to our borrowers.”
The acquisition is expected to close in the second quarter of 2022, subject to customary closing conditions.