Enters commercial real estate market and Fannie Mae, Freddie Mac loan originator

Berkadia Commercial Mortgage has acquired Capmark Financial Group’s loan origination and servicing business. Capmark has received approval from the U.S. Bankruptcy Court for the District of Delaware to complete the sale to Berkadia.

According to Berkadia, it has entered the commercial real estate origination and loan servicing market. The sale includes a servicing portfolio of over $240b as well as leading Fannie Mae, Freddie Mac, FHA, life insurance company correspondent lending and asset management operations.

Michael Lipson has been named president of Berkadia and will continue to lead the business. Berkadia’s board of directors will include two representatives from each of Berkshire Hathaway and Leucadia National.

Warren Buffett, chief executive officer of Berkshire Hathaway, said: “We are optimistic about the prospects for these businesses. We are impressed by the existing management team and will support them in positioning Berkadia to take advantage of opportunities created by the ongoing dislocation in the commercial real estate industry.”

Michael Lipson, head of Global Services and Loan Originations at Capmark, said: “We couldn’t be more pleased with the outcome of this process. The support of financially strong sponsors will enable us to compete effectively in the market, continue to provide our clients with outstanding service, and maintain critical business relationships with important constituents.

“Over the years, tremendous effort has gone into building these platforms. It is very gratifying that Berkadia recognized not only the value of our business, but also the importance of our employees.”