ORIX to Acquire Hunt Real Estate Capital

The agreement will include ORIX subsidiaries Lancaster Pollard and Red Capital and is expected to close by year’s end.
Image via Pixabay user rawpixel

ORIX USA, a subsidiary of financial services giant ORIX Corp., is set to acquire Hunt Real Estate Capital (HREC), a subsidiary of Hunt Cos., for an undisclosed price, the companies announced today.

The new entity will be backed by ORIX USA and will combine ORIX Real Estate Capital’s brands—Lancaster Pollard and Red Capital Group—with HREC’s foothold in the U.S. multifamily market.

The deal is expected to close by the end of the year, at which time HREC President & CIO James Flynn will be the CEO of the new entity. Currently, ORIX USA has major corporate offices in New York City, Columbus, Ohio and Dallas, while HREC has 25 offices in major markets across the U.S. At the time, there are no plans to combine offices, but ORIX USA will revisit the situation in the future, according to an ORIX USA spokesperson.

Joining forces

Japan-based ORIX Corp. has assets in excess of $100 billion, with roughly $400 billion of assets under management. HREC is a subsidiary of the Hunt Cos., a New York-based real estate firm that focuses on financing multifamily acquisitions around the country, particularly Fannie Mae, Freddie Mac and FHA financing. The firm recently provided a $64.1 million Fannie Mae affordable multifamily loan to SDG Housing Partners.

Lancaster Pollard’s business focuses on the senior living and healthcare sectors, while Red Capital is one of the nation’s leading FHA lenders as well as a loan servicer. Both firms are headquartered in Columbus, Ohio.

ORIX USA said in a statement that with the purchase of HREC, the company sought to create one of the country’s top commercial real estate lending firms.

“Hunt Real Estate Capital has much to offer. It holds a wide range of agency licenses including Freddie Mac conventional, has multifamily originators in 25 locations around the country, and offers proprietary bridge, term, and subordinated products,” Jerry Abrahams, CEO for ORIX Commercial Mortgage Servicing Group, told Multi-Housing News.

The combination of Lancaster Pollard, Red Capital Group and Hunt Real Estate Capital gives us one of the most well-rounded multifamily platforms in our segment of the market, with annual loan production exceeding $9 billion and a servicing portfolio of more than $40 billion.”