Walker & Dunlop Buying CWCapital for $220M

Walker & Dunlop, Inc. announced this month that it had entered into a definitive agreement to acquire its rival lender, CWCapital LLC, for $220 million. According to the company, $80 million of the purchase will be provided in cash and approximately $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the company's stock price, and pending the expected closing within then next 3-4 months.

"We are thrilled to announce this acquisition. CWCapital is an exceptional company with an outstanding team and a corporate culture very similar to Walker & Dunlop's," commented Willy Walker, Chairman, President and CEO of Walker & Dunlop. "The combined company will be one of the largest commercial real estate lenders in the United States," Walker continued. "CW's people, credit discipline, and client focus are highly regarded throughout the industry. It's a wonderful accomplishment to bring these two fantastic companies together and create a true industry force."

CWCapital, is a subsidiary of CW Financial Services LLC, which is owned by Fortress Investment Group LLC. Founded in 1972 and with 180 currently employees, CWCapital lends money to multifamily, healthcare and commercial real estate industries and has in-house origination capabilities for Fannie Mae, Freddie Mac and life insurance companies.

For more news and information visit Blumberg Capital Partners.

Freddie Mac's New CMBS K-Deal Offering

Freddie Mac announced this week that it would be offering new Structured Pass-Through Certificates ("K Certificates") multifamily mortgage-backed securities. The K-010 Certificates will be offered to the market by a network of dealers led by J.P. Morgan Securities LLC and Wells Fargo Securities LLC as Co-Lead Managers and Joint Bookrunners for the transaction. Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Jefferies & Company, Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated have been named as Co-Managers for the transaction. The company expects to offer approximately $1 billion in K Certificates ("K-010 Certificates"), which are expected to settle on or about February 10, 2011.

"We are very pleased to announce our first K-Deal for 2011, which represents the first of many deals we expect to issue this year as our securitization activity grows," said David Brickman, vice president of Multifamily CMBS Capital Markets for Freddie Mac. "This offering also includes a new feature – this is the first K-deal in which two rating agencies were engaged to provide conventional public ratings."

For more news and information visit Blumberg Capital Partners.