BOSTON--(BUSINESS WIRE)--CWCapital LLC (CW), a subsidiary of CW Financial Services LLC, and a full-service, national lender to the multifamily real estate industry, today announced its acquisition of servicing rights for a $2.6 billion small loan portfolio from Citibank (Citi). The portfolio is comprised of approximately 2,200 Fannie Mae multifamily loans with an average UPB of $1.2 million.
The transaction increases CW’s loan servicing portfolio to approximately $16 billion. The firm will service the loans through its newly created Small Loan Servicing Group, based out of the Needham, MA loan servicing headquarters.
Gardner Hall, Managing Director and head of CW’s Primary Loan Servicing Group, will oversee the new portfolio. Several highly experienced staff members have been assigned to the Small Loan Servicing Group, which will be led by Brian McGrath, Vice President and a 13-year industry veteran. CW is in process of hiring additional, experienced staff to round out the team.
CW also announced it will launch a small loan origination team during the first quarter of 2012. Located in CW’s Irvine, CA office, the team will serve CW’s new small loan client base as well as develop third-party business, initially focusing on the west coast markets.
Michael Berman, President and CEO of CWCapital, stated, “We are pleased to complete this transaction and to enter into the multifamily small loan market. We have a highly proficient staff committed to providing best in class service and I am confident our expertise in loan servicing will provide a smooth transition for the borrowers. I am equally confident that our expertise in multifamily financing will ensure the successful launch of our new small loan originations platform.”
“Citi’s decision to sell the portfolio is consistent with its strategy of reducing assets in Citi Holdings, Citi Group’s portfolio of non-core operating businesses and assets. Citi will continue to be a Fannie Mae DUS lender through Citi Community Capital, Citi’s community development lending and investing group,” the company said in a statement.
About CW Financial Services
CW Financial Services LLC is a unique, vertically integrated commercial real estate debt and equity platform. Offering a full range of products and services including multifamily lending, servicing, gap equity placement, special servicing, consulting, investment sales and investment management, CW Financial Services employs approximately 440 professionals in 17 offices nationwide. For more information, visit www.cwcapital.com.
About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.