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Angel Oak grows commercial lending arm by acquiring Cherrywood Mortgage

Cherrywood will offer wholesale small-balance commercial lending

Back in April, Angel Oak, an investment management firm that focuses on mortgage credit and made its name providing residential mortgages that don’t fit into the Qualified Mortgage box, expanded into commercial and multifamily lending by launching Angel Oak Commercial Lending.

Now, the company is about to grow its commercial lending arm.

Angel Oak Commercial announced this week that it has acquired a controlling interest in Cherrywood Mortgage, a small-balance commercial mortgage lender based in California.

Cherrywood specializes in originating loans of $5 million or less, typically on stabilized or value-add properties for all major commercial property categories. The company offers various loan offerings, including “lite doc,” “market rent,” “near-bank quality,” and “bank quality” loan programs.

Angel Oak Commercial also originates similarly sized loans for commercial real estate projects, one- to four-family income-producing rental properties, and bridge financing.

Going forward, Cherrywood will serve as Angel Oak Commercial’s wholesale small-balance commercial lending platform.

In a release, Angel Oak said that it views the acquisition of Cherrywood as the “next evolutionary step” for the company’s expansion.

“With this strategic acquisition, we are adding both a great business and a tremendous group of people to the AOCL team,” AOCL Managing Director Ben Easterlin said.

Cherrywood is led by CEO Bill Komperda and President Ed Resendez, who have more than 70 years of combined experience in the mortgage business.

“The experience that Bill, Ed and the Cherrywood team possess is unrivaled in the commercial lending industry,” Easterlin said. “Cherrywood has long been regarded as a top firm in the space with an extensive network of brokers throughout the country.”

The companies say that the combination will allow them to fill a void in commercial lending created by the regulatory burden placed upon community lenders.

“Cherrywood is thrilled to join the Angel Oak team. It is an ideal match, as we both realize the need in the marketplace for the commercial real estate loans that Cherrywood will offer,” Cherrywood’s Komperda said.

“Many individuals and companies with great ideas for commercial real estate projects often find themselves stuck because of limited financing options,” Komperda added. Both Cherrywood and Angel Oak understand this problem, as well as its solution.”

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