In a move that will greatly enhance its position in the commercial multifamily housing arena, Capital One Financial Corp. is acquiring Beech Street Capital, a privately held national originator and servicer of Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) multifamily commercial real estate loans.
Terms of the deal, which is expected to close in the fourth quarter, were not made public.
Founded in 2009, Beech Street is an originator, underwriter and servicer of multifamily commercial real estate loans and is one of the largest national providers of government-insured mortgage loans through the multifamily lending programs of Fannie Mae, Freddie Mac and FHA. The company originated approximately $4 billion in loans in 2012, making it the sixth largest agency originator in the country.
‘As we continue to expand our product capabilities and services for clients across our growing commercial banking business, this acquisition is a logical expansion of our already substantial commitment to the multifamily sector,’ says Michael Slocum, president of Capital One's commercial banking group. ‘The combination of Capital One's multifamily business and Beech Street will make us a top five national multifamily originator and one of the few institutions in the U.S. capable of offering clients a one-stop banking solution encompassing a full range of banking services.’
Bethesda, Md.-based Beech Street has 10 offices across the country and services a loan portfolio of approximately $10 billion.
‘The addition of Beech Street strengthens our multifamily business, provides a national presence and enables us to meet the needs of clients in the multifamily sector with a complete set of banking services that includes agency program loans, bank balance sheet loans, treasury services and capital markets solutions,’ adds Rick Lyon, head of commercial real estate banking, Capital One.
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