KeyBank Real Estate Capital says it is acquiring commercial mortgage servicing rights totaling $110.5 billion from Bank of America. The transaction also includes a commercial mortgage-backed securities (CMBS) special servicing portfolio of about $14 billion.
KeyBank will purchase substantially all of the third-party CMBS and special servicing rights from Bank of America's Global Mortgages & Securitized Products business. The portfolio also includes servicing for a variety of private investors, subject to investor consent.
Concurrent with this announcement, KeyBank has entered into a long-term subservicing agreement with Berkadia Commercial Mortgage LLC whereby Berkadia will act as subservicer on all CMBS primary servicing acquired from Bank of America. In connection with this agreement, KeyBank is acquiring Berkadia's CMBS special servicing business.
‘Acquiring these portfolios allows us to further leverage our highly-rated servicing platform,’ says Marty O'Connor, executive vice president and head of KeyBank Real Estate Capital Loan Servicing and Asset Management. ‘Our existing partnership with Berkadia will allow us to quickly integrate the Bank of America portfolios.’
KeyBank anticipates that the transactions will close during the second quarter. Upon completion, the company's commercial mortgage servicing portfolio will exceed $200 billion.