The buyout, expected to close in September, falls within months of KeyCorp's acquisition of National Realty Funding in Kansas City, MO - deals that promise to be the first of several to establish a Sunbelt presence, a KeyCorp source told GlobeSt.com. Terms of the Newport asset purchase are not available, but are not subject to regulatory approval, according to KeyCorp.
The source says both entities' management teams presently are hashing out details of a new corporate structuring. The upcoming changes will be announced in the next month. It is known that Newport will remain in Dallas, but will operate under the name of Key Commercial Mortgage Co., acting as a division of Key Commercial Real Estate.
Newport, with a servicing portfolio of more than $1 billion, is a leader in origination, underwriting, funding and servicing of multi-family and low-income real estate loans and securitized mortgage programs. It is recognized for its expertise in Fannie Mae, Freddie Mac, Ginnie Mae and HUD.
George Emmons, KeyCorp's Commercial Real Estate Group executive vice president and national manager, says the Dallas acquisition "will dramatically expand the breadth of our lending capabilities" as well as strengthen its market position in the Fannie Mae program.The teaming will provide a one-stop shop that few commercial banks will be able to match, says Newport president and CEO Jeffrey S. Juster.
KeyCorp, which has operations in 46 states, opened its first Texas office at 14643 Dallas Parkway in January. Newport maintains regional offices in Atlanta, Cincinnati, Baltimore, San Diego and Tampa, Fla.
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