Capital One Financial (COF) has consolidated its commercial real estate lending units, in an attempt to further integrate Beech Street Capital, the multifamily mortgage firm it acquired last year.
The resulting unit, called Capital One Multifamily Finance, combines its existing commercial lending operations with Beech Street's nine offices nationwide, the McLean, Va., company said this week. The move blends Beech Street's specialization in government-insured loans with Capital One's focus on balance-sheet CRE lending.
"Bringing them together enhances our ability to serve clients more efficiently, while signaling to the marketplace that we intend to become an even greater force in the multifamily business," says Rick Lyon, head of commercial real estate banking at Capital One.
The bank acquired Beech Street last year as part of its strategy to expand its multifamily operation nationwide and sell apartment loans to Fannie Mae, Freddie Mac and the Federal Housing Finance Agency.
The new commercial unit operates 16 offices in California, Illinois, Texas and along the East Coast.