|PNC Financial Services Group Inc. is shutting down a commercial mortgage unit.
Capstone Realty Advisors, LLC, will close down, Fred Solomon, a PNC corporate communications vice president, confirmed to MortgageDaily.com in a statement today.
"After a thorough review, we determined that Capstone did not fit PNC's business model and real estate finance strategy," the statement said.
Capstone's servicing portfolio, which stood at 167 loans for $1.2 billion at the end of 2007, will be transferred to other PNC units "with the expertise to manage it," according to the spokesman.
One of those units is PNC Real Estate - Midland Loan Services, the nation's second biggest commercial mortgage servicer according to data reported by the Mortgage Bankers Association. The unit's servicing portfolio was 34,187 loans for $310.3 billion as of Dec. 31, 2008.
Solomon declined to comment on the number employees impacted by the Capstone's closing and instead pointed to a January announcement that PNC planned to eliminate 5,800 positions company-wide during the next two years.
Last month, Solomon told MortgageDaily.com that National City Corp.'s warehouse lending unit would be shut down -- also impacting an undisclosed number of employees.