Berkadia Signs $75B Deal with KeyBank

HORSHAM, PA-Berkadia Commercial Mortgage LLC, based here, reports it has reached an agreement with KeyBank Real Estate Capital to subservice a commercial portfolio valued at $75 billion that KeyBank has agreed to purchase from Bank of America.

KeyBank Real Estate Capital recently agreed to acquire certain commercial servicing rights from Bank of America. The deal with KeyBank Real Estate involves the subservicing of that BoA portfolio, Berkadia officials state.

Part of the transaction also includes the intended sale of Berkadia's special servicing business to KeyBank, which when combined with Bank of America's portfolio, will bring KeyBank's specially serviced portfolio to $47 billion.

“This was a large, complicated transaction that couldn't have been completed without the hard work and cooperation of KeyBank and our team,” states Mark McCool, executive vice president and head of servicing at Berkadia. “Berkadia prides itself on being able to offer a comprehensive menu of services that support all commercial real estate products and market sectors. Through this agreement, we continue to show our propensity for being the 'Servicer's Servicer,' providing high quality third-party loan servicing to institutional lenders and allowing them to outsource all or part of their commercial loan servicing needs.”

In April 2012, KeyBank entered an arrangement with Berkadia and transferred subservicing rights of nearly $40 billion in securitized commercial mortgages and in return, Berkadia transferred deposits related to FHA mortgages and services to KeyBank.

“Since we've worked with KeyBank in the past, there was definitely a high level of comfort and trust when negotiating this newest transaction,” adds McCool. “We know that this move is beneficial for both companies and we look forward to more opportunities to expand our business and grow our portfolio.”