(BRK.A), (BRK.B)
With its Houston-based team on target to reach $3.5 billion in debt production volume, Berkadia, Berkshire Hathaway’s joint venture with Leucadia, has expanded its Houston operations in order to accommodate the growing team of investment sales and commercial lending experts.
The Houston Berkadia team tripled its office space when it relocated from a 6,200 square foot space at 2200 Post Oak Boulevard to an 18,000-square-foot office at 2229 San Felipe Street.
At the same time, it noted that it its mortgage banking team had reached a milestone in its production volume, on target to hit $3.5 billion in debt production volume alone over the last 18 months.
To accommodate this massive growth in production, Berkadia’s Houston team has added approximately 30 new professionals over the past 18 months, warranting the more expansive office space for the larger team.
“We’re very bullish on the Houston market in the long-term and we are seeing tremendous demand for Berkadia’s expertise in commercial real estate and mortgage banking both locally and regionally,” said Tucker Knight, Berkadia Senior Managing Director. “Our business has expanded despite many in the market contracting.”
Added Berkadia Senior Managing Director Ryan Epstein, “Berkadia provides a combination of investment sales and mortgage banking expertise all under one roof, which has resonated wit’h clients across the spectrum. We anticipate a very strong pipeline of business in the months and years ahead.”
About Berkadia
Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation, Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA. The company was among the top Freddie Mac and Fannie Mae multifamily lenders for 2013.
Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.
In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.
The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.
© 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.