C-III Capital Partners LLC (C-III) has acquired the commercial real estate special servicing and collateralized debt obligation management businesses of JER Partners (JER), a private real estate investment management company. Financial terms of the transaction were not disclosed.
JER is the named special servicer for $35.5 billion of commercial real estate loans, of which approximately $4 billion is currently in special servicing and under active management.
C-III will merge JER's special servicing operations into its wholly owned subsidiary, C-III Asset Management LLC. With the acquisition, C-III is now the named special servicer for approximately 14,000 loans with an aggregate balance in excess of $152 billion, of which approximately $17 billion is currently in special servicing.
‘This acquisition strengthens C-III's position as one of the top three special servicers in the country and advances our growth strategy,’ C-III Chairman and CEO Andrew L. Farkas said in a statement. ‘Special servicing is a key foundation of our strategy to create a fully diversified commercial real estate company.’
C-III began operations in March 2010 with the purchase of Centerline Captial Group's commercial loan servicing and institutional real estate debt fund management businesses. Since then, the company has launched mortgage origination, investment sales and title insurance businesses, and in June, C-III announced its agreement to acquire NAI Global, a commercial real estate services firm.
