Tampa-Based Real Estate Lender Acquired in $3.2 Billion Transaction

August 29, 2026 - 00:09

A Tampa-based real estate financing firm is being acquired in a deal that tops $3 billion. Toorak Capital, known for providing short-term bridge loans to house flippers and small developers, will merge with Velocity Financial, a national lender based in California. The combined transaction is valued at roughly $3.2 billion, according to company statements.

The deal will bring together two firms that focus on different parts of the property lending market. Toorak has built a strong niche in fix-and-flip financing, often working with smaller investors who buy distressed homes. Velocity, on the other hand, specializes in loans for rental properties and small multifamily buildings. Executives say the merger will create a more complete platform, letting borrowers move from a quick renovation loan to a longer-term rental mortgage without switching lenders.

Toorak will keep its Tampa headquarters and its current management team. The company was founded in 2014 and has grown quickly, funding more than $1 billion in loans in recent years. Velocity will pay a mix of cash and stock for Toorak, with the final price depending on certain performance targets. The boards of both companies have approved the deal, which is expected to close by the end of the year, pending regulatory approval.

Industry analysts note that the acquisition comes at a time when many small real estate investors are pulling back due to higher interest rates. Combining the two lenders could help both firms cut costs and reach more borrowers. Toorak's existing loan portfolio, which includes thousands of active bridge loans, will be folded into Velocity's balance sheet. No layoffs were announced as part of the deal.