Minneapolis-based NorthMarq announced it has acquired Kinghorn, Driver, Hough & Co., a Houston, Texas-based commercial debt and equity firm, for an undisclosed amount. KDH Principal Ray Driver will be a managing director at the firm’s Houston office, joining NorthMarq’s Tony Gray and John Burke.
The deal comes several months after NorthMarq’s acquisition of Texas Realty Capital, a commercial mortgage banking firm based in Austin, Texas, and three months after the firm tapped Jeffrey Weidell as its next CEO. NorthMarq’s Texas business is headquartered in Dallas, while the firm also operates an office in San Antonio.
KDH brings a nearly $2 billion loan servicing portfolio to the new firm, which extends NorthMarq’s servicing portfolio to more than $60 billion, according to the firm. KDH will also bring eight mortgage banking professionals and five financial analysts to the new Houston offices, growing the number of employees at the office to 30.
“With this acquisition and the one of TRC in Austin earlier in 2019, we are now one of the biggest debt and equity firms in the market but don’t consider us having a cap on our growth,” said Weidell. “Texas is a very vibrant market. We are certainly interested in adding investments sales to our services in more Texas locations and are focused on that expansion now. “
Weidell also noted in prepared remarks that the acquisition is a win-win for both companies, allowing KDH to benefit from NorthMarq’s platform and NorthMarq to benefit from KDH’s experience in the market, while Driver nodded to NorthMarq’s relationships with Fannie Mae and Freddie Mac as one of the biggest drivers in joining the firm.
KDH has deep roots in the Houston area. Founded in 1945, the firm is one of the oldest, independently-owned commercial real estate capital firms in the state. NorthMarq has been in business since 1960, and has grown its ranks to nearly 600 employees, following more than 20 acquisitions.
Last week, NorthMarq Capital provided acquisition financing through Freddie Mac to a partnership of RSE Capital Partners and Interwest Capital Group for its acquisition of EVO Apartments, a 376-unit community in Las Vegas that the venture purchased for $105 million.