Capital One Financial Corporation (NYSE:COF) announced Friday an agreement to acquire Beech Street Capital, a national originator and servicer of Fannie Mae, Freddie Mac, and FHA multifamily commercial real estate loans. Terms of the transaction were not disclosed.
The acquisition is expected to close in the fourth quarter of 2013.
Beech Street was founded in 2009 and is one of the largest national providers of government-insured mortgage loans through Fannie, Freddie, and FHA, including refinance, acquisition, construction, and rehabilitation loans for senior housing and care facilities.
The firm originated approximately $4 billion in loans in 2012, becoming the sixth-largest agency originator in the country. Beech Street, headquartered in Bethesda, Md., has 10 offices around the country and services an approximately $10 billion loan portfolio.
“We share Capital One’s vision of bringing together two complementary and high performing teams to boost our position in the multifamily space,” said Grace Huebscher, CEO of Beech Street. “We look forward to driving our business to the next level as an important part of Capital One’s growing multifamily business.”
Capital One Financial Corporation, headquartered in McLean, Va., had $296.5 billion in total assets as of June 30, 2013.
“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,” said Michael Slocum, President of Capital One’s Commercial Banking Group, in a statement. “The combination of Capital One’s multifamily business and Beech Street will make us a top 5 national multifamily originator and one of the few institutions in the US capable of offering clients a one-stop banking solution encompassing a full range of banking services.”
Written by Alyssa Gerace