Bethesda, Md.-based Walker & Dunlop has entered into a definitive agreement to acquire CWCapital LLC, an operating subsidiary of CW Financial Services LLC that is wholly owned by funds managed by affiliates of Fortress Investment Group LLC. The purchase price will total $220 million, $80 million in cash and approximately $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the company's stock price pending closing.
CWCapital is a Needham, Mass.-based lender to the multifamily, healthcare and commercial real estate industries. CWCapital currently has approximately 180 employees, services $16.8 billion in commercial mortgages, and originated $3.7 billion of loans in 2011. Michael Berman, CEO of CWCapital, will take a senior leadership role at Walker & Dunlop.
‘We are thrilled to announce this acquisition. CWCapital is an exceptional company with an outstanding team and a corporate culture very similar to Walker & Dunlop's,’ says Willy Walker, chairman, president and CEO of Walker & Dunlop. ‘The combined company will be one of the largest commercial real estate lenders in the United States.’