Reuters – Walker & Dunlop Buys CWCapital

Walker & Dunlop Inc., which provides commercial real estate financial services, will buy lender CWCapital for $220 million to increase its servicing portfolio. CWCapital is a subsidiary of CW Financial Services LLC, which is wholly owned by asset manager Fortress Investment Group. The purchase price will include $80 million in cash and about $140 million in Walker & Dunlop stock, the company said in a statement.

(Reuters) – Walker & Dunlop Inc, which provides commercial real estate financial services, will buy lender CWCapital LLC for $220 million to increase its servicing portfolio.

 

CWCapital is a subsidiary of CW Financial Services LLC, which is wholly owned by asset manager Fortress Investment Group LLC.

 

The purchase price will include $80 million in cash and about $140 million in Walker & Dunlop stock, the company said in a statement.

 

Walker & Dunlop originates and sells a range of multi-family and other commercial real estate financing products.

 

After the deal closes, CW Financial will become Walker & Dunlop’s largest shareholder. Michael Berman, CEO of CWCapital, will take a senior leadership role at Walker & Dunlop.

 

The company said in May that its loan originations for the first quarter were $674.5 million, up 33 percent from a year ago.

 

Walker & Dunlop shares, which have lost about 11 percent of their value since the company reported results last month, closed at $11.26 on Thursday on the New York Stock Exchange.