Berkadia Buys Cleveland-Based Mortgage-Banking Firm

(BRK.A), (BRK.B)

When people talk about hot real estate markets they usually don’t talk about Cleveland, Ohio, but that may be about to change. At least Berkshire Hathaway seems to think so.

Berkadia Commercial Mortgage, Berkshire Hathaway’s joint venture with Leukadia, has acquired Cleveland-based mortgage-banking firm RiverCore Capital.

RiverCore Capital is headed by managing partner Mark J. Vogel.

Among the company’s major transactions were $84,000,000 in non-recourse bridge financing for the One Cleveland Center Penton Media building, and $92,000,000 in senior debt financing for the Flats East Bank.

“Obviously Cleveland’s an interesting market, and it’s one that doesn’t have a lot of national players,” said Justin Wheeler, chief executive officer at Berkadia.

It does now.

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.