JACKSONVILLE, FL-EverBank Financial Corp., based here, is buying GE Capital Real Estate’s Business Property Lending unit in an all-cash $2.5-billion deal announced Monday. The unit lends on essential-use properties owned or leased by small and midsize businesses.

In a conference-call presentation to investors Monday morning, EverBank cited the “high quality loan portfolio” the Business Property acquisition would represent, as well as its potential for diversifying the bank’s balance sheet. Included in the deal are about $2.44 billion of performing commercial loans, Business Property’s origination and servicing platforms, 108 employees in 14 offices nationwide and servicing rights on $3.1 billion of loans securitized by GE Capital.

The presentation also cites Business Property’s 25-year operating history and “seasoned management team.” Average loan size in Business Property’s portfolio is $2.6 million; since 1997, it has originated more than $27 billion of loans, with cumulative lifetimes losses of 1.51%.  

Moreover, when the acquisition closes, it’s expected to provide an “immediate” boost in the low double digits to EverBank’s earnings per share. It’s been approved by the boards of directors at both companies, according to a release, and is expected to be finalized in the fourth quarter, pending regulatory approvals.

In a statement, Alec Burger, Norwalk, CT-base president of GE Capital Real Estate’s North America division, says the Business Property sale is “a strong strategic win and is consistent with our stated strategy to reduce the overall size of our real estate portfolio. We are excited by this new chapter for the Business Property team.” EverBank says it expects to retain the unit's current management team and grow the business from its present levels.