NEW YORK CITY-After entering into a definitive agreement in September 2011, Ranieri Real Estate Partners LP and private equity funds affiliated with WL Ross & Co. LLC completed the acquisition of Deutsche Bank Berkshire Mortgage (DBBM) late Friday, according to a joint statement from the two companies.
Under the deal, DDBM—formerly a subsidiary of Deutsche Bank—has been renamed to Berkeley Point Capital. The acquisition is not expected to affect the company’s 175 employees, while its current CEO, Jeffrey C. Day, will serve as CEO of Berkeley Point.
“We believe the current market dynamics, which favor renting over homeownership and the unique capabilities of our team, position the business well for long-term success,” Day says, in a statement following the transaction. The skills and experience of Berkeley Point and the expertise and resources of the Rainieri and WL Ross organizations will combine to create exceptional growth and best-in-class performance.”
The acquisition is another vote of support for the booming multifamily market across the United States. Berkeley Point, which originates multifamily loans for Fannie Mae, Freddie Mac and the Federal Housing Administration, has a portfolio of nearly 2,200 loans in 45 states worth $29 billion.
Jon Vaccaro, founder and head of real estate at Ranieri Partners, says the acquisition will allow the firm to further expand its platform. Last year, Berkeley originated $3 billion in new loans—and plans for more activity this year.
“The new Berkeley Point provides us with an excellent in-place team, that we know well and is capable of much more,” he says, in a statement. “With the benefit of the strong WL Ross and Ranieri partnership, we believe Berkeley Point is poised for growth.”
Berkeley Point has offices in Boston; Bethesda, MD; Lenox, MA; Santa Monica, CA; Dallas; Brentwood, TN; Irvine, CA; and Seattle. A spokesperson for Berkeley did not return a phone call in-time for deadline.
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