Deutsche Bank will acquire substantially all of Berkshire Mortgage's origination and servicing assets. The transaction is expected to close in the fourth quarter.
The two firms anticipate that the businesses will complement each other and that Berkshire will advance Deutsche's presence in originating, financing, structuring, securitizing and trading commercial real estate debt. "Uniting these complementary businesses will further solidify Deutsche Bank's position," notes Jon Vaccaro, global head of Deutsche Bank's Real Estate Debt Markets business.
Berkshire Mortgage specializes in financing for multifamily real estate. In April, the company secured $88.6 million in Freddie Mac and Fannie Mae financing for 10 properties for Denver-based Aimco. The firm is a leading originator of government-sponsored enterprise and government-insured multifamily loans with $3.5 billion of origination volume in 2003. The business will maintain its operational headquarters in Boston, as well as its regional facilities.
Douglas Krupp, chairman of the Berkshire Group, says this is part of a long-term strategy to create new businesses, growing those businesses to be market leaders, and creating significant value for our equity holders. "We expect to continue this strategy going forward within our core competencies."
Berkshire Group was founded in 1969 by brothers Douglas and George Krupp. Berkshire Mortgage was founded in 1987.
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