Cornerstone Real Estate Advisors has announced the acquisition of ACRE Capital Holdings Estate for $93m (£69m).
The deal, which is expected to close next quarter, will nearly double the investment managers’ loan portfolio to £10bn.
ACRE Capital, a subsidiary of the US-based Ares Commercial Real Estate Corporation, originates and manages multi-family residential mortgage loans, senior housing and healthcare facility loans.
It has licences with all three US government loan agencies – Fannie Mae, Freddie Mac and the Federal Housing Administration.
Scott Brown, global president and chief executive of Cornerstone, said: “The acquisition of ACRE Capital expands Cornerstone’s national commercial lending platform, further strengthening our relationships with multi-family borrowers, while providing access to other sectors, including senior housing and healthcare.
“The affordable housing segment of the marketplace is under-served and acquiring ACRE Capital will allow us to meaningfully address the current and looming scarcity.”
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