Angel Oak Commercial Lending Announces Acquisition of Cherrywood Mortgage
Thursday, June 7th, 2018
Angel Oak Commercial Lending, LLC has acquired a controlling interest in Cherrywood Mortgage, LLC (Cherrywood), a national small-balance commercial mortgage lender based in Los Angeles County, Calif.
Cherrywood will serve as the wholesale small-balance commercial lending arm of AOCL. It is led by Chief Executive Officer Bill Komperda and President Ed Resendez. Respectively, Komperda and Resendez have 32 and 40 years of experience in the mortgage industry.
“With this strategic acquisition, we are adding both a great business and a tremendous group of people to the AOCL team. The experience that Bill, Ed and the Cherrywood team possess is unrivaled in the commercial lending industry. Cherrywood has long been regarded as a top firm in the space with an extensive network of brokers throughout the country,” said Ben Easterlin, Managing Director of AOCL.
Cherrywood’s specialty is originating loans with balances of $5 million or less, typically on stabilized or value-add properties for all major commercial property classes, with various lending approaches including “lite doc,” “market rent,” “near-bank quality” and “bank quality” loan programs. The recently launched AOCL, part of Angel Oak Companies, also originates loans of similar size for commercial real estate projects, one- to four-family income-producing rental properties, and bridge financing. Adding Cherrywood to the AOCL platform marks the next evolutionary step for Angel Oak Companies, as it broadens its leadership position in the residential non-QM lending business by extending into this area of commercial lending.
Loans of the size that Cherrywood and AOCL originate have traditionally been originated by community banks; however, tightened regulations around commercial lending at financial institutions has limited their lending ability, resulting in a financing challenge for smaller commercial real estate owners, developers and investors.
“Cherrywood is thrilled to join the Angel Oak team. It is an ideal match, as we both realize the need in the marketplace for the commercial real estate loans that Cherrywood will offer. Many individuals and companies with great ideas for commercial real estate projects often find themselves stuck because of limited financing options. Both Cherrywood and Angel Oak understand this problem, as well as its solution,” Komperda said.