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With Beech Street Acquisition, Capital One Vaults to Leading Spot Among Apt. Lenders

Privately Held, Maryland-based Beech Street Services $10B Loan Portfolio
August 16, 2013
Capital One Financial Corp. (NYSE: COF) announced it has agreed to acquire Beech Street Capital, one of the nation's largest government-insured multifamily mortgage lenders.

Terms were not disclosed for the transaction expected to close in the fourth quarter.

Beech Street, founded in 2009, is an originator, underwriter and servicer of multifamily CRE loans and is one of the country's largest providers of Fannie Mae, Freddie Mac and FHA loans. The company originated about $4 billion in loans in 2012, making it the sixth largest agency originator in the country. Beech Street services a total loan portfolio of about $10 billion.

McLean, VA-based Capital One said in a statement that the combined entity will be a top-5 national multifamily loan originator.

"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.

Slocum said the combination with Bethesda, MD-based Beech Street will place Capital One among the few institutions in the U.S. capable of offering clients a one-stop banking solution encompassing a full range of banking services for apartment investment borrowers.

Rick Lyon, Head of commercial real estate banking for Capital One, said the addition of Beech Street "strengthens our multifamily business, provides a national presence, and enables us to meet the needs of clients in the multifamily sector with a complete set of banking services that includes agency program loans, bank balance sheet loans, treasury services, and capital markets solutions."

"We share Capital One’s vision of bringing together two complementary and high performing teams to boost our position in the multifamily space," said Grace Huebscher, CEO for Beech Street, which has 10 offices around the country. "We look forward to driving our business to the next level as an important part of Capital One’s growing multifamily business."

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