Capital One Financial Corp.’s acquisition of a commercial real estate lender is expected to make the company one of the biggest multifamily lenders in the country.
A news release Friday indicated that an agreement has been reached for the McLean, Va.-based financial services company to acquire Beech Street Capital LLC.
Bethesda, Md.-based Beech Street is an originator, underwriter and servicer of multifamily loans. It claims to be one of the country’s largest providers of Fannie Mae, Freddie Mac and Federal Housing Administration multifamily loans.
Four-year-old Beech Street reports that it originated $4 billion last year, “making the company the sixth-largest agency originator in the country.”
The Mortgage Bankers Association reported Beech Street’s commercial real estate loan servicing portfolio at $9.232 billion as of June 30, ranking it as the 29th-biggest CRE servicer in the country.
It serviced $8.886 billion for Fannie and Freddie, landing it in the 14th spot in that category, according to MBA. Its FHA and Ginnie Mae servicing portfolio was $0.346 billion, making it the 27th largest servicer of government CRE loans.
Capital One Commercial Mortgage Banking Group President Michael Slocum said in today’s announcement that the combination of the two companies’ will create “a top 5 national multifamily originator.”
Terms of the deal, which is expected to close by the end of this year, weren’t disclosed.
