How the DLP deal gets structured will be important from a legal and regulatory standpoint, financial services attorneys and an analyst said. This week it bought multifamily properties in Florida and Kentucky, bringing the total number of managed housing units to 12,600 across 21 states. Last year the firm surpassed $1 billion of assets under management. In addition to the realty company and DLP Capital Partners, which provides real estate equity and debt funds to high net worth investors, DLP’s other subsidiaries include a real estate management arm, a lending business, a loan servicing business and a title insurance and escrow services division. DLP Capital Partners was established in 2013, the same year the first equity fund was formed.īy 2015, more than $50 million in investments was secured, according to DLP’s website. It expanded to Florida the following year and launched building and real estate management divisions through which it began acquiring and flipping multifamily housing and commercial properties. “This can really be a prototype of a nationally chartered community bank,” said Reinhardt, a 20-year veteran of Merrill Lynch who started a de novo bank in Connecticut before joining Miami-based Brickell Bank in 2012 as chairman and CEO.īrickell was sold to Banesco USA in 2019.ĭLP was founded in 2009 as a real estate company that bought and flipped houses. In the future, there may be a physical presence - a branch, interactive teller machine or shared space in a loan production office are all possibilities - in DLP’s headquarters cities and other major markets, including Asheville, N.C., Reinhardt said. Sunnyside has just one branch in Irvington, in Westchester County. “This is about setting up a banking enterprise that is connected to a very successful real estate enterprise, with an opportunity to grow this bank largely on a digital platform,” Reinhardt said. Owning a bank could help DLP quickly move into new business lines, including commercial real estate and commercial and industrial lending, Reinhardt said.Īt the same time, DLP plans to pump capital into the bank, to help it expand geographically, beef up its digital banking capabilities and create two key fee income drivers: wealth management and trust services. About 75% of its loans are in real estate and nearly half are in one- to four-family mortgages. Apart from the deposits, Sunnyside is an attractive target to DLP because it’s primarily a real estate lender, Reinhardt said. Sunnyside Bancorp is the parent of Sunnyside Federal Savings and Loan Association in Irvington, N.Y. Like DLP, LendingClub and SoFi opted to buy banks in large part to lower the cost of funding loans. It now operates under the name LendingClub Bank. online lender to buy a bank when it acquired Radius Bancorp in Boston in January. Meanwhile, LendingClub became the first U.S. Last week the San Francisco fintech Social Financial, better known as SoFi, said it would pay $22.3 million in cash to buy Sacramento, Calif.-based Golden Pacific Bank and its holding company. The deal, announced late Tuesday, continues a microtrend of nonbank lenders purchasing banks.
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