WL Ross & Co and Ranieri Real Estate Partners LP on Friday said that they have acquired Deutsche Bank Berkshire Mortgage, a multifamily loan originator, from Deutsche Bank AG for an undisclosed amount. The company, now called Berkeley Point Capital originates loans for Fannie Mae, Freddie Mac and the Federal Housing Administration services $29 billion loan portfolio.
Last year Berkeley originated $3 billion in loans. The multifamily sector has been at the top of the best performing categories of US commercial real estate for more than a year. The sector has benefited from tight lending rules that make it more difficult for individuals to obtain mortgages for single-family homes, as well as a recoiling from home homeownership lingering from the housing bust.
The sector also has benefited from cheap financing from the government backed loans from Fannie, Freddie and the FHA. Ranieri Real Estate Partners LP (RREP), a real estate financial services company, and private equity funds affiliated with WL Ross & Co are partners in Berkeley. Ranieri Real Estate Partners, founded buy former Salomon Brothers Vice Chairman Lewis Ranieri, has been branching out to various services related to commercial real estate. In December, Ranier Real Estate Partners agreed to buy a small boutique commercial real estate investment bank.
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