Complementary origination and investment
management platforms are foundation for growth
ORIX Corporation USA (ORIX USA), the U.S. and Latin America
business hub for Tokyo-based ORIX Corporation (ORIX), announced
today that it has signed a definitive agreement to acquire Hunt
Real Estate Capital, LLC, a subsidiary of Hunt Companies, Inc. The
acquisition combines the financial strength of ORIX USA and the
complementary product offerings of ORIX Real Estate Capital brands,
Lancaster Pollard and Red Capital Group, with Hunt Real Estate
Capital’s strong presence in the multifamily industry.
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James P. Flynn
“The Hunt Real Estate Capital acquisition represents the
culmination of our efforts to create a top-tier national commercial
real estate lender, one with the capital, skillset and product
range to more flexibly address the needs of commercial real estate
investors and developers than traditional bank lenders,” said Terry
Suzuki, ORIX USA President and CEO. “Hunt Real Estate Capital’s
portfolio of products and its geographic footprint perfectly
complement those of ORIX Real Estate Capital brands, Lancaster
Pollard and Red Capital Group. Hunt Real Estate Capital’s
leadership team combined with our existing teams provides the
expertise required to forge these three groups into a single and
cohesive full-service entity.”
New York-based Hunt Real Estate Capital has earned a reputation
for providing tailored financing solutions to multifamily investors
across the country through its nationwide network of 25 offices.
The commercial real estate lender offers the full range of Fannie
Mae, Freddie Mac, and FHA financing, as well as proprietary bridge,
term, and subordinated products.
Upon closing, 15-year industry veteran James P. Flynn, Hunt Real
Estate Capital’s President and Chief Investment Officer, will be
the CEO of the combined entity. “I am very excited about joining
forces with the talented teams at Lancaster Pollard and Red
Capital,” Flynn said. “While we each bring unique strengths and
competencies to the table, we share a commitment to service and
dedication to the long-term interests of our clients.”
The new company will benefit from the extensive resources that
ORIX USA brings to the transaction. A subsidiary of ORIX
Corporation, the Japanese-based financial services giant, ORIX USA
provides a wide range of innovative capital solutions for clients
in the corporate, real estate, and municipal finance sectors. ORIX
Corporation assets exceed $100 billion, and it has approximately
$400 billion of assets under management.
“The financial backing from ORIX USA is a powerful
differentiator for us,” Flynn said. “It means that we will be able
to offer commercial real estate investors direct capital products
to more fully address their needs as they grow and evolve.”
While Lancaster Pollard and Red Capital were combined to form
ORIX Real Estate Capital, they have continued to originate business
under their existing brands and maintain their sector focus.
Lancaster Pollard is one of the foremost lenders to the senior
living and healthcare industries, and Red Capital is the nation’s
leading FHA lender and an experienced loan servicer. Both are
headquartered in Columbus, Ohio.
“This is very exciting for all of us at ORIX Real Estate
Capital, as the combined companies give us one of the most
well-rounded multifamily platforms in our segment of the market,”
said Nick Gesue, Chief Executive Officer of ORIX Real Estate
Capital. “This transaction will take us an important step closer to
achieving the goals our talented team has been working so hard to
attain.”
The combination of Hunt Real Estate Capital and ORIX Real Estate
Capital will create a commercial real estate finance platform with
annual loan production in excess of $9 billion and a servicing
portfolio of more than $40 billion.
“We believe that our ability to provide diverse capital products
will be an important way to deliver value to our clients and build
loyalty,” Jerry Abrahams, Chief Executive Officer for ORIX
Commercial Mortgage Servicing Group said. “To that end, we are
committed to continue growing our range of debt solutions for our
customers and partners as it will enable us to flexibly execute
regardless of market conditions.”
“As we move forward, ORIX USA’s capital and its entrepreneurial
culture will enable us to be thoughtfully aggressive in meeting the
needs of our customers,” Flynn said. “Our goal is to be a premier
national commercial real estate lender. Thanks to the talent of our
combined teams and the confidence ORIX USA has expressed in this
venture, this ambitious goal is well within our reach.”
The acquisition is expected to close in 2019, subject to
customary closing conditions and regulatory approvals.
Advisors for ORIX USA on the transaction included Beekman
Advisors, Inc. as financial advisor and Davis Polk & Wardell,
LLP, as legal advisor. For Hunt Real Estate Capital, Paul, Weiss,
Rifkind, Wharton & Garrison, LLP, served as legal advisor.
ORIX Corporation USA (ORIX USA)
Since 1981, ORIX USA has provided innovative capital solutions
that clients need to propel their business to the next level. ORIX
USA and its subsidiaries — Boston Financial Investment Management,
ORIX Real Estate Capital (the combined company of RED Mortgage
Capital and Lancaster Pollard), NXT Capital, Mariner Investment
Group, RB Capital and ORIX Capital Partners — include a team of
more than 1,000 employees spanning more than 30 offices across the
U.S. and Brazil. ORIX USA and its family of companies have $64
billion of assets under management, administration and servicing
(including more than $9 billion held by the company and its
subsidiaries).* Its parent company, ORIX Corporation, is a publicly
owned international financial services company with operations in
37 countries and regions worldwide. ORIX Corporation is listed on
the Tokyo Stock Exchange (8591) and New York Stock Exchange (IX).
For more information on ORIX USA, visit www.orix.com.
*All figures are as of March 2019.
About Hunt Companies, Inc.
Hunt is a diversified, family-owned holding company that invests
in operating businesses, real estate assets and infrastructure
assets. Founded in 1947, Hunt builds its reputation on integrity
and performance. With a focus on excellence in corporate
governance, Hunt is committed to a culture of transparency for
employees, clients, investors and the communities it serves. Hunt
and its affiliates employ over 7,000 employees across the U.S. and
Europe. Learn more at www.huntcompanies.com.
Hunt Real Estate Capital
Hunt Real Estate Capital, a subsidiary of Hunt Companies, Inc.,
is a leader in financing commercial real estate throughout the U.S.
The Company finances all types of commercial real estate:
multifamily properties (including small balance), affordable
housing, office, retail, manufactured housing, healthcare/senior
living, industrial, and self-storage facilities. It offers Fannie
Mae, Freddie Mac and FHA in addition to its own proprietary loan
products. Since its inception, the Company has structured more than
$30.6 billion of loans and today maintains a servicing portfolio of
more than $16.3 billion. Headquartered in New York City, Hunt Real
Estate Capital has over 270 professionals in 25 locations
throughout the United States. For more information, visit
huntrealestatecapital.com.
ORIX Real Estate Capital
ORIX Real Estate Capital, the combined company of RED Capital
Group and Lancaster Pollard, provides specialized capital solutions
for multifamily, affordable, seniors and health care real estate
together with its affiliated companies. The OREC companies have
financed approximately $100 billion in total transaction amount and
originate $6 billion annually, with a servicing portfolio of $25
billion. OREC is a Fannie Mae DUS®, Map- and Lean-Approved FHA, and
Freddie Mac OptigoSM Small Balance lender. Headquartered in
Columbus, Ohio, the company has approximately 330 employees in
offices nationwide. ORIX Real Estate Capital is a subsidiary of
ORIX Corporation USA, which provides investment capital and asset
management services to clients in the corporate, real estate and
municipal finance sectors. For more information, visit
orixrealestatecapital.com.
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about
expected future events and financial results that involve risks and
uncertainties. Such statements are based on our current
expectations and are subject to uncertainties and risks that could
cause actual results that differ materially from those described in
the forward-looking statements. Factors that could cause such a
difference include, but are not limited to, those described under
“Risk Factors” in the Company’s annual report on Form 20-F filed
with the United States Securities and Exchange Commission and under
“(4) Risk Factors” of the “1. Summary of Consolidated Financial
Results” of the “Consolidated Financial Results April 1, 2018 –
March 31, 2019.
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Jeff Smith jeff.smith@orix.com 214.237.2301
Dione Martin dmartin@marketwave.biz 972.852.2725
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