Berkadia Completes Capmark Acquisition

Berkadia Commercial Mortgage LLC, the newly formed entity owned by Berkshire Hathaway Inc. and Leucadia National Corp., has completed its acquisition of Capmark Financial Group Inc.'s (Capmark) North American loan origination and servicing business.

The sale includes a servicing portfolio of more than $240 billion – the third largest in the U.S. – as well as Fannie Mae, Freddie Mac, FHA, life insurance company correspondent lending and asset management operations. Berkadia has more than 20 origination and servicing locations in markets across the country, as well as an office in Hyderabad, India.

"We are optimistic about the prospects for these businesses," comments Berkshire Hatahway's CEO, Warren Buffet. "We are impressed by the existing management team and will support them in positioning Berkadia to take advantage of opportunities created by the ongoing dislocation in the commercial real estate industry."

Michael I. Lipson, head of Global Services and Loan Originations and a member Capmark's executive team since 1996, has been named president of Berkadia and will continue to lead the business. Berkadia's board of directors will include two representatives each from Berkshire Hathaway and Leucadia National.

Berkadia is in the process of hiring more than a thousand of Capmark's approximately 1,500 current employees.

"Over the years, tremendous effort has gone into building these platforms," Lipson says. "It is very gratifying that Berkadia recognized not only the value of our business, but also the importance of our employees."

SOURCE: Berkadia Commercial Mortgage LLC


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