Through Acquisition Priced At Up to $260M, Worldwide CRE Company Expands Home mortgage Maintenance Capabilities to Consist of Complete Fannie Mae, Freddie Mac and HUD Loaning
JLL’s Greg O’Brien, CEO, Americas, said his firm is obtaining multifamily finance company Oak Grove Capital to add full Fannie Mae, Freddie Mac and HUD/GNMA lending services to its capital markets arsenal.
JLL today revealed it is obtaining Oak Grove Commercial Home mortgage, LLC, which does business as Oak Grove Capital, a major move to grow the CRE companies’s capital markets business by enhancing its multifamily home loan financing capabilities.
St. Paul, MN-based Oak Grove Capital supplies financial obligation financing for multifamily and seniors real estate, servicing and managing 1,300 loans in 46 states totaling $9.5 billion. The company arranges loans for multifamily acquisitions, construction and refinance through Fannie Mae DUS, Freddie Mac, Federal Real estate Administration, Ginnie Mae and other alternative financing sources.
Oak Grove Capital produced $1.4 billion in firm volume in 2014, nearly twice the $775 million JLL originated through its Freddie Mac seller/servicer agreement.
The acquisition includes $175 million payable by JLL at closing, which Oak Grove Capital will use to retire financial obligation and redeem favored investors, according to data provided by JLL. Performance-based earnouts for Oak Grove Capital would bump the expected total purchase price to $260 million. The acqusition will certainly be funded in cash, drawing from JLL’s existing $2 billion revolving credit facility.
Oak Grove Capital produced $1.4 billion in company volume in 2014, almost twice what JLL originated through its Freddie Mac seller/servicer arrangement.
Sourcing firm debt for multifamily deals has actually ended up being a crucial and growing company for international CRE companies, and JLL anticipates the Oak Grove addition will broaden and complement its multifamily sales and equity services. The acquisition is anticipated to nearby the end of the year.
“The multifamily sales and funding market represents a substantive portion of all capital markets activity in the United States,” stated JLL’s Greg O’Brien, CEO, Americas in a statement announcing the agreement. “Oak Grove has developed an exceptional credibility and is extensively recognized as a leader in credit analysis, underwriting and threat management, as well as possession management and loan maintenance.”
All 120 Oak Grove staff members from throughout the nation will sign up with JLL once the transaction closes. The Oak Grove leadership group will take an active role in shaping and leading JLL’s multifamily company, Given their deep history in the apartment financing sector
Incorporated, JLL and Oak Grove will have more than $4 billion in yearly loan originations and $14 billion in loan servicing. The acquisition permits JLL to scale throughout the U.S. and expand in critical loaning sections, the Chicago-based company said.
“We are among the few business in the country to have deep, longstanding relationships with all of the multifamily financing firms,” said Williams, CEO of Oak Grove. “Joining JLL’s wider platform will permit us to bring those associations to the next level while keeping the business spirit and hands-on execution our customers have actually long appreciated.”
Oak Grove Capital, established in 2009, has consistently ranked amongst the top cost effective housing and seniors housing loan providers by Fannie Mae and Freddie Mac and numerous trade publications such as Affordable Housing Finance. The firm competes for loans and servicing volume with banks and other financial insitutions, in addition to multifamily lending professionals such as Walker & & Dunlop and Greystone Maintenance.