Walker & Dunlop (WD) completed its acquisition of CWCapital, making it one of the largest commercial real estate lenders in the United States.
CWCapital was an operating subsidiary of CW Financial Services, which is wholly owned by funds managed by affiliates of Fortress Investment Group (FIG).
Walker & Dunlop bought CWCapital for $234 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 million, based on Walker & Dunlop’s closing share price on August 31.
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.
The purchase makes the Bethesda, Md.-based mortgage lender the 11th largest commercial/multifamily mortgage servicer in the nation, with a commercial loan servicing portfolio exceeding $30 billion.
“In 2007, Walker & Dunlop embarked on an ambitious five-year growth plan that has included two major acquisitions and the company’s initial public offering,” said company chief executive Willy Walker. “Our success has driven Walker & Dunlop from the 45th largest commercial real estate lender in 2007 to the 8th largest following this most recent acquisition.”
The company is now the largest Fannie Mae, Freddie Mac, and Federal Housing Administration lender on a combined basis in the nation.
Former CWCapital CEO Michael Berman will serve as executive vice president of Walker & Dunlop, focusing on government affairs, through the end of the year.