HORSHAM, Pa.--(BUSINESS WIRE)--As a result of the recent announcement that KeyBank Real Estate Capital has agreed to purchase certain commercial servicing rights from Bank of America, Berkadia Commercial Mortgage LLC (Berkadia) has agreed to subservice the portfolio, making it the largest Fee-for-Services provider in the industry. Approximately $75 billion will be added to Berkadia’s existing servicing portfolio.
Part of the transaction also includes the intended sale of Berkadia’s special servicing business to KeyBank, which when combined with Bank of America’s portfolio, will bring KeyBank’s specially serviced portfolio to $47 billion.
“This was a large, complicated transaction that couldn’t have been completed without the hard work and cooperation of KeyBank and our team,” said Mark McCool, executive vice president and head of servicing at Berkadia. “Berkadia prides itself on being able to offer a comprehensive menu of services that support all commercial real estate products and market sectors. Through this agreement, we continue to show our propensity for being the ‘Servicer’s Servicer,’ providing high quality third-party loan servicing to institutional lenders and allowing them to outsource all or part of their commercial loan servicing needs.”
"We continue to offer our servicing customers a compelling combination of service and value, while allowing them to manage their expenses and the relationships with their borrowers," said Hugh Frater, chief executive officer of Berkadia.
In April 2012, KeyBank entered an arrangement with Berkadia and transferred subservicing rights of close to $40 billion in securitized commercial mortgages and in return, Berkadia transferred deposits related to FHA mortgages and services to KeyBank.
“Since we’ve worked with KeyBank in the past, there was definitely a high level of comfort and trust when negotiating this newest transaction,” said McCool. “We know that this move is beneficial for both companies and we look forward to more opportunities to expand our business and grow our portfolio.”
About Berkadia™:
Berkadia Commercial Mortgage LLC, one of the most prominent lenders in the commercial real estate industry, is a highly rated master, primary and special servicer managing a portfolio of more than $195.6 billion as of March 31, 2013. As a correspondent for insurance companies and other institutional lenders and a leading approved lender for Fannie Mae, Freddie Mac and HUD/FHA, Berkadia offers clients access to capital for the acquisition, construction, rehabilitation or refinance of commercial real estate properties. Through the acquisition of Hendricks & Partners, Berkadia now adds multi-family advisory services and investment sales to its capabilities.
To learn more about Berkadia, please visit www.berkadia.com.
