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Combination creates one of the largest commercial real estate lenders in the nation with $7.7 billion of commercial real estate loan originations in 2011
Aggregate servicing portfolio of combined entity exceeds $33.7 billion
Creates the 2nd largest multifamily lender and 8th largest commercial real estate lender in the United States
Walker & Dunlop, Inc. (NYSE: WD) ("the Company") announced today that it entered into a definitive agreement to acquire CWCapital LLC ("CWCapital"), an operating subsidiary of CW Financial Services LLC ("CW Financial"), which is wholly owned by funds managed by affiliates of Fortress Investment Group LLC (NYSE: FIG) ("Fortress"). The purchase price will total
$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. Upon the transaction's close, it is expected that CW Financial will become the Company's largest shareholder.
CWCapital is a leading lender to the multifamily, healthcare and commercial real estate industries with in-house origination capabilities for Fannie Mae, Freddie Mac, HUD, life insurance companies and conduits. CWCapital originated
$3.7 billion of loans in 2011. Founded in 1972 in
Needham, MA, CWCapital currently has approximately 180 employees, services
$16.8 billion in commercial mortgages, and has closed over
$20 billion in commercial real estate financing since 1994.
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," commented
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," Walker continued. "CW's people, credit discipline, and client focus are highly regarded throughout the industry. It's a wonderful accomplishment to bring these two fantastic companies together and create a true industry force."
"This is an exciting opportunity that will bring together two exceptional teams," said
Michael Berman. "The greatest strength of these companies is our people, and this combination will position Walker & Dunlop for substantial future growth."
"In Walker & Dunlop, we have found an excellent partner to ensure the continued development of CWCapital's strong business. We believe that the combined franchise has enormous potential, and we are pleased to become a major shareholder of Walker & Dunlop," said
Pete Briger and
Wesley Edens, co-Chairmen of Fortress Investment Group.
The transaction is expected to close within 90-120 days and is subject to stockholder, governmental and regulatory approvals.