ORIX Acquires Hunt Real Estate Capital; NorthMarq Buys Kinghorn, Driver, Hough & Co.

The commercial real estate financing world will look a little different in 2020.

On Monday, ORIX Corp. USA acquired Hunt Real Estate Capital LLC, New York. ORIX plans to combine Hunt Real Estate Capital with its two ORIX Real Estate Capital brands, Lancaster Pollard and RED Capital Group, to form a full-service entity.

Hunt Real Estate Capital President and Chief Investment Officer James Flynn will lead the newly created company. The annual transaction production for Hunt Real Estate Capital and ORIX Real Estate Capital exceeded $9 billion last year with a $40 billion-plus combined servicing portfolio.

“The combined organization will possess the capital, national presence, servicing capability and range of debt and investment solutions to address the needs of the entire commercial real estate community more flexibly than traditional banks and other lenders,” said ORIX USA President and CEO Terry Suzuki.

Also yesterday, NorthMarq Capital, Minneapolis, acquired Houston-based Kinghorn, Driver, Hough & Co. Founded in 1945, KDH is the oldest independently owned commercial real estate capital company in Texas. KDH’s principals previously held an ownership position in the Q10 network of privately held commercial real estate capital firms.

KDH principal Ray Driver will join Tony Gray and John Burke as a Managing Director of NorthMarq’s Houston office. Driver will bring eight additional mortgage banking professionals and five financial analysts with him, bringing the total employees in the expanded NorthMarq office to nearly 30.

In addition to the firm’s mortgage banking professionals, KDH also brings nearly $2 billion in loan servicing portfolio to NorthMarq, extending the parent firm’s servicing portfolio to more than $60 billion.

Last year, NorthMarq acquired Texas Realty Capital in Austin, which expanded the firm’s footprint to four offices in Texas. NorthMarq’s investment sales business in Texas finished 2019 with record transaction volume approaching $1.3 billion.