KeyBank To Acquire Bank of America CMBS Servicing Portfolio And Berkadia CMBS Special Servicing Business
KeyBank Real Estate Capital, the commercial real estate business unit of KeyCorp (NYSE: KEY), announced today that it has entered into a series of agreements that will substantially increase its commercial mortgage servicing business. Under the terms of an agreement with Bank of America, N.A., KeyBank has agreed to purchase certain commercial mortgage servicing rights from Bank of America (NYSE: BAC).
As of March 31, 2013, Bank of America had a total commercial mortgage servicing portfolio of approximately $110.5 billion. The transaction also includes a CMBS special servicing portfolio of about $14 billion.
KeyBank will purchase substantially all of the third party CMBS and special servicing rights from Bank of America's Global Mortgages & Securitized Products business. This portfolio also includes servicing for a variety of private investors, subject to investor consent. We anticipate a seamless transition and closing of the transactions in the second quarter. This transaction does not impact Bank of America's Commercial Real Estate Banking business.
Upon completion of this transaction, KeyBank's commercial mortgage servicing portfolio will be among the top three largest named servicers of commercial/multifamily loans in