Walker & Dunlop Inc. has entered into a joint venture with an affiliate of a fund managed by Fortress Investment Group to form a commercial mortgage-backed securities (CMBS) lending platform to provide financing for commercial real estate properties nationwide.
The venture, to be named Walker & Dunlop Commercial Property Funding LLC, will provide first mortgage loans on all commercial property types. In addition, the venture will originate high-yield whole loans, mezzanine debt and preferred equity. The joint venture will be headquartered in New York and overseen by Tim Koltermann, a 25-year industry veteran in commercial loan originations, CMBS trading, loan pricing and structuring, and CMBS securitization.
‘Walker & Dunlop finished 2012 as the 10th largest commercial real estate lender in the United States and third largest multifamily lender as a major partner to Fannie Mae, Freddie Mac, and HUD,’ commented Willy Walker, Walker & Dunlop's Chairman and CEO.
The JV expects to issue loan applications as early as January 2014 and is projecting an initial origination target of $1 billion in the first year of operation.