NEW YORK CITY AND PLANO, TEXAS — Franklin BSP Realty Trust Inc. (NYSE: FBRT), a REIT based in New York City, has entered into a definitive agreement to acquire NewPoint Holdings JV LLC, a multifamily loan originator headquartered in Plano. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions, including regulatory approvals. Terms of the transaction were not released.
Launched in 2021, NewPoint has an existing servicing portfolio of $54.7 billion, including mortgages for market-rate multifamily, affordable housing, seniors housing, healthcare and manufactured housing properties nationwide. The company operates as both a direct lender and third-party placement provider.
NewPoint, through its wholly owned subsidiary NewPoint Real Estate Capital LLC, is one of 19 multifamily originators and servicers approved to make loans on behalf of Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development (HUD). The acquisition will now allow Franklin BSP Realty Trust to originate agency mortgage loans.
“For years we have been looking to add agency capabilities to the platform,” says Michael Comparato, president of Franklin BSP Realty Trust. “We believe this transaction is the final piece to complete our ‘one stop shop’ puzzle.”
The acquisition will also facilitate an exit strategy for the REIT’s multifamily bridge loan portfolio, which represents 71 percent of the company’s holdings, and broadens Franklin BSP’s market reach to new business lines and geographic footprints.
“This strategic expansion of our multifamily lending offerings significantly increases our total addressable market in our highest conviction sector,” says Richard Byrne, CEO of Franklin BSP Realty Trust and chairman of the company’s board of directors.
Franklin BSP Realty Trust intends to finance the acquisition through a combination of existing cash and issuance of debt and equity. The company will operate the acquired business through a taxable REIT subsidiary.
Barclays served as financial advisor to Franklin BSP Realty Trust, and Hogan Lovells US LLP and Reed Smith LLP served as its legal counsel. BofA Securities Inc. served as financial advisor to NewPoint, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as the company’s legal counsel.
Franklin BSP Realty Trust had approximately $6 billion of assets under management as of Dec. 31, 2024. The REIT is externally managed by Benefit Street Partners LLC, a wholly owned subsidiary of San Mateo, Calif.-based Franklin Resources Inc.
The company’s stock price closed on Monday, March 10 at $13.30 per share, up from $12.94 a year ago.
— John Nelson