Cadwalader acted as legal counsel to Third Coast Bank in its first-ever securitization – a $200 million revolving commercial real estate loan made to one of America's largest private investment firms focused on real estate development – which was announced on April 7.
According to the official press release, Third Coast Bank originated the loan, which is secured by interests in a portfolio of eleven Residential Master Planned Communities under development in Texas and arranged by EJF Capital, on April 1, 2025. Following the origination, Third Coast Bank created participation interests in the loan, one of which was sold to EJF CRT 2025-1 Depositor LLC (the "Depositor"), who subsequently sold that participation interest to EJF CRT 2025-1 LLC (the "Issuer"). The Bank retained the participation interests not sold to the Depositor.
It is expected that these transactions will reduce Third Coast Bank's risk-weighted assets as calculated under current risk-based capital rules. It is also expected that these transactions will reduce the ratio of loans for construction, land development and other land to the bank's total capital, a measure used by the bank's regulators to inform their supervisory approach to possible loan concentration risk. These transactions are expected to improve the diversity of the bank's on-balance sheet loan portfolio.
The Cadwalader team, which is the go-to counsel for clients investing in the North American CRT market, was led by partners Jed Miller, Dan Meade and Gary Silverstein; special counsel Mike McCormack and associate Spencer Brachfeld.
Read the full press release here.