ORIX USA makes acquisition for multifamily business expansion

by Candyd Mendoza05 Nov 2019

ORIX Corporation USA has agreed to acquire Hunt Real Estate Capital to expand its presence in the multifamily industry.

The deal aims to grow the company’s capital, skillset, and product range to address the needs of commercial real estate investors and developers, said Terry Suzuki, president and chief executive officer of ORIX USA.

“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,” Suzuki said. “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.”

Under the acquisition, ORIX USA will merge its financial assets and the complementary product offerings of ORIX Real Estate brands, including Lancaster Pollard and Red Capital Group, with Hunt Real Estate Capital’s mortgage offerings.

The combination of the two companies will create a commercial real estate platform with an annual loan production of over $9 billion and a servicing portfolio of more than $40 billion, according to ORIX.

Upon closing, Hunt’s President and Chief Information Officer James Flynn will step up to 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 firms expect to seal the deal within this year. The acquisition is also subject to customary closing conditions and regulatory approvals.