JLL, a Fortune 500 company, announced on August 13 that it is purchasing Oak Grove Commercial Mortgage, LLC, which does business as Oak Grove Capital. The main goal of the acquisition is to continue growing a full-service capital markets brand in the Americas.
As a full-service worldwide provider of capital solutions for real estate investors and residents, JLL Capital Markets delivers the best solutions for its clients such as the sale, and repositioning of financing, advisory services and recapitalization. In the last year alone, JLL Capital Markets and its 1,700 specialists accomplished $118 billion in investment sale and debt and equity transactions worldwide.
One of the oldest providers of debt financing covering multi-family and seniors housing real estate in the US, Oak Grove will bring its full-service mortgage lending and mortgage banking capabilities to JLL. The winner of the 2014 Excellence in Asset Management award from Fannie Mae, Oak Grove is regularly recognized by Fannie Mae and Freddie Mac as one of the best and most affordable senior housing lenders. This should help JLL’s market share through its Freddie Mac, Fannie Mae, and HUD/GNMA capabilities and expertise. In addition, Oak Grove will complement JLL’s multi-family sales and equity services.
Potential for Growth
The purchase is expected to be finalized by the end of the year. Upon the completion of the acquisition, all 120 employees of Oak Grove will join JLL. With its extensive history covering the multi-family finance segment, the current Oak Grove leadership team will take an active partnership role in leading JLL’s multifamily business.
As a unit, JLL and Oak Grove together will have more than $4 billion in annual business and $14 billion in loan servicing, and they also have the ability to increase its reach across the U.S. The merger should also allow JLL to increase its presence in several key new lending segments.