MCLEAN, VA. — Capital One Financial Corp. (NYSE: COF) has entered into a definitive agreement to acquire Beech Street Capital, a privately held national originator and servicer of Fannie Mae, Freddie Mac and FHA multifamily commercial real estate loans. The terms of the transaction were not disclosed. The acquisition is expected to close in the fourth quarter.
Founded in 2009, Beech Street is an originator, underwriter and servicer of multifamily commercial real estate loans and is one of the largest national providers of government-insured mortgage loans through the multifamily lending programs of Fannie Mae, Freddie Mac and FHA. Headquartered in Bethesda, Md., Beech Street has 10 offices around the country.
Together, McLean, Va.-based Capital One and Beech Street will have portfolio loan servicing and origination capabilities nationally.
Through its scalable origination and servicing platform, Beech Street originated approximately $4 billion in loans in 2012, making the company the sixth largest agency originator in the country. Beech Street services a loan portfolio of approximately $10 billion.
“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,” says Michael Slocum, president of Capital One’s Commercial Banking Group.
“The combination of Capital One’s multifamily business and Beech Street will make us a top five national multifamily originator and one of the few institutions in the U.S. capable of offering clients a one-stop banking solution encompassing a full range of banking services.”
“The addition of Beech Street strengthens our multifamily business, provides a national presence, and enables us to meet the needs of clients in the multifamily sector with a complete set of banking services that includes agency program loans, bank balance sheet loans, treasury services and capital markets solutions,” says Rick Lyon, head of commercial real estate banking at Capital One.
“We have great respect for the experience, leadership and unique expertise that Beech Street founder and CEO Grace Huebscher and her exceptional management team bring to Capital One,” adds Lyon. “Like us, Grace and her team are passionate about the client. They are solution-oriented and focused on seamless execution and ongoing customer service, all balanced with prudent risk management.”
Capital One Financial Corp. is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., recorded $209.9 billion in deposits and $296.5 billion in total assets as of June 30.