Capital One to acquire Beech Street Capital

Published August 16, 2013 by Robert Powell, III

McLean-based Capital One Financial Corp. has signed an agreement to acquire Bethesda, Md.-based Beech Street Capital, a privately held originator of multifamily commercial real estate loans.
The terms of the deal, expected to close in the fourth quarter, were not disclosed.

Founded in 2009, Beech Street is an originator, underwriter and servicer of multifamily commercial real estate loans.

Beech Street is one of the largest national providers of government-insured mortgage loans through the multifamily lending programs of Fannie Mae, Freddie Mac and FHA.

“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,” Michael Slocum, president of Capital One's Commercial Banking Group, said in a statement.  “The combination of Capital One's multifamily business and Beech Street will make us a top 5 national multifamily originator and one of the few institutions in the U.S. capable of offering clients a one-stop banking solution encompassing a full range of banking services.”

Beech Street originated about $4 billion in loans in 2012, making it the sixth-largest agency originator in the country.

The company services a loan portfolio of about $10 billion.

The CEO of Beech Street is Grace Huebscher, who co-founded the company in 2009.

Beech Street has 11 offices around the country.

Capital One is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $209.9 billion in deposits and $296.5 billion in total assets as of June 30.

Capital One, N.A. has more than 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia.