New York City-based Franklin BSP Realty Trust Inc. (NYSE: FBRT) is acquiring NewPoint Holdings JV LLC, a privately held commercial real estate finance company headquartered in Plano, Texas.
The financial terms of the deal were not disclosed. According to the companies, the acquisition will expand FBRT’s multifamily operations to include agency and mortgage servicing alongside its existing commercial real estate lending products, which include bridge lending, subordinate lending, construction lending, and CMBS. NewPoint has a $54.7 billion servicing portfolio, and its mortgage servicing rights on Agency loans will be held as an asset on FBRT’s consolidated balance sheet.
FBRT Chairman and CEO Richard Byrne said, “We are pleased to announce our acquisition of NewPoint, which is a transformative transaction for FBRT. This strategic expansion of our multifamily lending offerings significantly increases our total addressable market in our highest conviction sector. We anticipate this transaction will enable FBRT to deliver long-term stockholder value and creates a clear path for FBRT to be able to trade at a premium to book value.”
