A new top-10 commercial mortgage lender has emerged from a merger deal that combines two commercial real estate firms. The transaction beefs up an existing mortgage conglomerate.
Walker & Dunlop Inc. announced Tuesday that it completed the acquisition of CWCapital LLC.
The unit was purchased from Fortress Investment Group LLC subsidiary CW Financial Services LLC for $234 million. The purchase price included $80 million in cash and $154 million in stock. It leaves Fortress as Walker & Dunlop’s largest shareholder and gives Fortress two seats on Walker & Dunlop’s 11-member board of directors.
CW Financial Services was originally acquired by Fortress in 2010.
Fortress has amassed a portfolio of mortgage-related investments that includes significant interests in Nationstar Mortgage Holdings, Newcastle Investment Corp. and Springleaf Finance Corp.
Last year’s combined CRE originations from Walker & Dunlop and CWCapital was $7.7 billion.
“Based on the 2011 Mortgage Bankers Association rankings, the combined production would have placed Walker & Dunlop as the second-largest multifamily lender and eighth-largest commercial real estate lender in the United States,” the statement said. “Walker & Dunlop is also now the 11th-largest commercial/multifamily mortgage servicer in the nation, with a commercial loan servicing portfolio exceeding $30 billion.”
Former CWCapital Chief Executive Officer Michael Berman will serve as executive vice president of Walker & Dunlop.
