Capital One Financial Corporation announced on friday that it had signed a definitive agreement to acquire Beech Street Capital for an undisclosed sum. Beech Street Capital, a Fannie Mae DUS lender, Freddie Mac Program Plus Seller Servicer and FHA lender, has 10 offices around the country and originated approximately $4 billion in loans in 2012, making the company the sixth largest agency originator in the country. According to a Washington Post article, Beech Street Capital was founded in 2009 by Grace Huebscher, a 14-year veteran of Fannie Mae, and began its multifamily mortgage business with $1 billion in loans in its first year.
"As we continue to expand our product capabilities and services for clients across our growing Commercial Banking business, this acquisition is a logical expansion of our already substantial commitment to the multifamily sector," said Michael Slocum, President of Capital One's Commercial Banking Group. "The combination of Capital One's multifamily business and Beech Street will make us a top 5 national multifamily originator and one of the few institutions in the US capable of offering clients a one-stop banking solution encompassing a full range of banking services."
"We share Capital One's vision of bringing together two complementary and high performing teams to boost our position in the multifamily space," said Huebscher. "We look forward to driving our business to the next level as an important part of Capital One's growing multifamily business."
Capital One does not expect any job losses as a result of the transaction. Rick Lyon, head of commercial real estate banking for Capital One, said Huebscher will become president of the bank's multifamily business and continue to lead her team in Bethesda.
For more news and information visit Blumberg Capital Partners.
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