Wells Fargo to acquire Reilly Mortgage Group.
Established in 1976, Reilly Mortgage provides financing to owners and operators of multifamily properties through the lending programs of Freddie Mac, Fannie Mae and the Federal Housing Administration (FHA).
"Reilly Mortgage will significantly broaden Wells Fargo's ability to serve the needs of multifamily housing properties, and give us a presence in a number of new markets across the country," said Ed Blakey, head of Wells Fargo's Commercial Mortgage Group. "Wells Fargo, in turn, will be able to offer these customers a broader array of products and services to help satisfy all their financial needs and help them succeed financially."
Reilly Mortgage originates more than $1.5 billion in new loans per year and is also a leading servicer of multifamily loans, with a servicing portfolio of $10 billion, according to the company. It has regional offices in Philadelphia; Mt. Laurel, New Jersey; Chicago; Knoxville, Tennessee; Dallas; Phoenix; San Francisco; and Vancouver, Washington.
Reilly Mortgage was sold by a group of investors led by Stonehurst Capital LLC, Rochester, New York, and was advised in the sale by Beekman Advisors Inc., New York.
"Reilly Mortgage's success is due to its consistent focus on the multifamily sector," said Tom Szydlowski, president and chief executive officer of Reilly Mortgage. "Our expertise in originating, underwriting, structuring, selling and servicing multifamily real estate loans reflects Reilly Mortgage's employees' specialized knowledge and our strong relationships with FHA, Fannie Mae and Freddie Mac, and our borrower clients. We look forward to bringing these strengths to Wells Fargo."
Subject to regulatory approval, the acquisition is expected to close in the third quarter of 2006. The business will become part of Wells Fargo Wholesale Banking's Specialized Financial Services Group.
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|Date:||Jul 1, 2006|
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