Axonic Capital and Deutsche Bank have partnered to originate and securitize multifamily loans in the so-called alt-agency space, a new securitization lane positioned between traditional private-label CMBS and agency offerings. The partnership addresses a structural need in the market by pairing a lender with a B-piece investor to manage first-loss risk, enabling programmatic issuance of all-multifamily conduits.Â
The alt-agency channel has emerged as borrowers seek more leverage than available from Fannie Mae and Freddie Mac, while investors increasingly favor multifamily debt given its historical performance and the ongoing national shortage of housing. Expected securitizations from the partnership are targeted in the $500 million to $600 million range.Â
Jonathan Salter, Head of Commercial Real Estate Lending at Axonic, said, “There are $550 billion of multifamily loans maturing over the next few years. Similar to what the corporate private credit market experienced over the past decade, we are going to see a migration away from the banks and agencies into firms like ours.”Â
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