This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Walker & Dunlop Completes Acquisition Of CWCapital LLC

BETHESDA, Md., Sept. 4, 2012 /PRNewswire/ -- Walker & Dunlop, Inc. (NYSE: WD) ("the Company") announced today it successfully completed the acquisition of CWCapital LLC ("CWCapital"), making it one of the largest commercial real estate lenders in the United States.  CWCapital was formerly 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"). 

In 2011, the two firms originated $7.7 billion of commercial real estate loans on a combined basis. Based on the 2011 Mortgage Bankers Association ("MBA") rankings, the combined production would have placed Walker & Dunlop as the 2 nd largest multifamily lender and 8 th largest commercial real estate lender in the United States.  Walker & Dunlop is also now the 11 th largest commercial/multifamily mortgage servicer in the nation, with a commercial loan servicing portfolio exceeding $30 billion

The aggregate purchase price to acquire CWCapital was $234.0 million, comprised of $80 million in cash and the issuance of 11.6 million shares of common stock to an affiliate of Fortress worth $154.0 million, based on Walker & Dunlop's closing share price on August 31, 2012. An affiliate of Fortress is now Walker & Dunlop's largest shareholder and will take two seats on Walker & Dunlop's 11-person Board of Directors.  

"This is a fantastic deal for Walker & Dunlop and CWCapital, as we bring together two great firms to create one of the largest commercial real estate lenders in the country," commented Willy Walker, Walker & Dunlop's Chairman, President, and CEO.  "In 2007, Walker & Dunlop embarked on an ambitious five-year growth plan that has included two major acquisitions and the Company's IPO.  Our success has driven Walker & Dunlop from the 45 th largest commercial real estate lender in 2007 to the 8 th largest following this most recent acquisition. We are also now the largest Fannie Mae, Freddie Mac, and HUD/FHA lender, on a combined basis, in the country," continued Walker.  "CWCapital's fantastic people, deep industry expertise, strong client relationships and broad geographic reach add a tremendous amount to the Walker & Dunlop platform.  The increased loan origination volumes and financial wherewithal this acquisition provides accelerates Walker & Dunlop's progress towards becoming the premier commercial real estate finance company in the United States."

Former CWCapital CEO, Michael Berman, will serve as Executive Vice President of Walker & Dunlop, focusing on Government Affairs, through the end of the year. "Our team is very excited to be moving onto the Walker & Dunlop platform," said Berman.  "I believe the two teams will work exceedingly well together, increasing the strength of the already incredible platform Walker & Dunlop has in place.  I am proud of everything the CWCapital team has accomplished and I am thankful for all of their hard work."

Walker & Dunlop will host a conference call to discuss details relating to the combined entity on Thursday, September 13, 2012 at 4:30 p.m. Eastern time. Analysts and investors interested in participating are invited to call (800) 894-5910 from within the United States or (785) 424-1052 from outside the United States and are asked to reference the Conference ID: WALKER. A simultaneous webcast of the call will be available on the Investor Relations section of the Walker & Dunlop website at http://www.walkerdunlop.com. Presentation materials, related to the transaction that will be referred to during the conference call, will be posted to the Investor Relations section of the Company's website prior to the call.

A telephonic replay of the call will also be available from approximately 6:00 p.m. Eastern time September 13, 2012 through September 20, 2012. Please call (800) 723-0479 from the United States or (402) 220-2650 from outside the United States.  An audio replay will also be available on the Investor Relations section of the Company's website, along with the presentation materials.

About Walker & DunlopThrough its subsidiary Walker & Dunlop, LLC, Walker & Dunlop, Inc. (NYSE: WD) is one of the leading commercial real estate finance companies in the United States, with a primary focus on multifamily lending. As a Fannie Mae DUS®, Freddie Mac Program Plus® and MAP- and LEAN-approved FHA lender, the Multifamily and FHA Finance groups are focused on lending to property owners, investors, and developers of multifamily properties across the country. Walker & Dunlop's proprietary Interim Loan Program provides financing for multifamily properties that do not currently qualify for permanent financing. The Capital Markets group specializes in financing commercial real estate for owners and investors across the United States, securing capital from large institutions such as life insurance companies, commercial banks, CMBS lenders, pension funds, and specialty finance companies. The Principal Investments group provides institutional advisory, asset management, and investment management services with respect to debt, structured debt and equity.

About CW Financial ServicesCW Financial Services (CWFS) is a unique, vertically integrated commercial real estate services platform offering a full range of products and services including special servicing, investment sales and mortgage banking, investment management, property management and research and consulting through its subsidiaries CWCapital Asset Management, CWCapital Investments, CompassRock Real Estate and Rockwood Real Estate Advisors. Following the sale of CWCapital LLC, CWFS employs 280 professionals in 12 offices nationwide.

SOURCE Walker & Dunlop

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs