In all of this, we see that Capital One Financial Corp. (NYSE:COF) made this acquisition with the clear purpose of further entrenching itself into a rapidly growing and attractive industry. It’s difficult to determine exactly what it means to investors because the terms of the deal were not disclosed, and Beech Street was a private company.
If we look for a comparable across Beech Street’s competitive landscape, we find another Bethesda, Md.-based multifamily commercial real estate lender, Walker & Dunlop, Inc. (NYSE:WD).
Walker and Dunlop originated roughly $7 billion in loans in 2012, compared to Beech Street’s $4 billion, and has a servicing portfolio of almost $38 billion, according to its most recent results. Walker & Dunlop, Inc. (NYSE:WD) carries a market value of just over $500 million — but is down almost 13% in 2013 after lackluster second-quarter earnings.
However, investors should rest assured with the knowledge that Capital One Financial Corp. (NYSE:COF) has a successful history of acquisitions, from ING Direct, to the HSBC credit card portfolio. Depending on the terms of the deal, this could be another one.
Patrick Morris has no position in any stocks mentioned. The Motley Fool owns shares of Walker & Dunlop.
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