CWCapital to be bought for $220M

CWCapital LLC will soon be bought by Walker & Dunlop, a commercial real estate lender with a focus on multi-family properties.

The purchase price will total $220 million, $80 million in cash and approximately $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the company’s stock price pending closing, Walker & Dunlop announced today. The transaction is expected to close within 90-120 days pending stockholder, governmental and regulatory approvals. CW is currently owned by Fortress Investment Group.

However, the entity that controls Stuyvesant Town won’t be sold, according to Joe DePlasco, a spokesperson for CWCapital. That company (the special servicer of ST/PCV) is CWCapital Asset Management, which, like CWCapital LLC, is a subsidiary of CW Financial.

“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.”

UPDATE:

Following the announcement, Council Member Dan Garodnick offered the following statement:

“I want to clarify that Fortress did not sell the special servicer of Stuyvesant Town and Peter Cooper Village, but rather, another subsidiary company of a similar name. In short, the entity with whom we have been working over the past two years remains in place, and remains the same. We will continue to seek avenues to work with CW Capital Asset Management to advance the Tenant Association’s conversion plan and to bring greater affordability and stability to the neighborhood.”

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