Walker & Dunlop Completes Acquisition of CWCapital LLC
- Sep 05, 2012
Bethesda, Md.—Walker & Dunlop Inc. announced it successfully completed the acquisition of CWCapital LLC, making it one of the largest commercial real estate lenders in the United States. CWCapital was formerly an operating subsidiary of CW Financial Services LLC, which is wholly owned by funds managed by affiliates of Fortress Investment Group LLC.
In 2011, the two firms originated $7.7 billion of commercial real estate loans on a combined basis. Based on the 2011 Mortgage Bankers Association (MBA) rankings, the combined production would have placed Walker & Dunlop as the second largest multifamily lender and 8th largest commercial real estate lender in the United States. Walker & Dunlop is also now the 11th largest commercial/multifamily mortgage servicer in the nation, with a commercial loan servicing portfolio exceeding $30 billion.
The aggregate purchase price to acquire CWCapital was $234.0 million, comprised of $80 million in cash and the issuance of 11.6 million shares of common stock to an affiliate of Fortress worth $154.0 million, based on Walker & Dunlop’s closing share price on August 31, 2012. 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.