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Special Reports
Commercial Lending
PNC Buying ARCs
PNC Financial Services is acquiring Calabasas Hills, Calif.-based ARCS Commercial
Mortgage in a bid to add on Fannie Mae DUS and Freddie Mac Program Plus capabilities.
The terms of the acquisition, which is also expected to add $13 billion in multifamily-related
servicing to PNC's servicing portfolio, were not disclosed.
ARCS, a multifamily lender, originated over $2.1 billion of loans in 2006, according
to PNC.
William S. Demchak, PNC's head of corporate & institutional banking, said,
"ARCS will provide PNC with expertise and a customer base that complement our own. Multifamily housing is
one of the largest lending sectors in commercial real estate, and agencies are leading providers of permanent financing
products for market rate and affordable multifamily projects."
And Howard Levine, founder and CEO, ARCS Commercial Mortgage, noted, "Together,
ARCS and PNC can now do even more."
Stacey Berger, EVP at Midland, PNC's commercial real estate services subsidiary,
told NMN that the acquisition
will make for "synergistic growth" for both PNC and ARCS and "fill a hole in our product set"
with the addition of ARCS' Fannie Mae DUS and Freddie Mac Program Plus capabilities.
He also sees the ARCS culture as complementary to PNC's.
ARCS will continue to operate out of Calabasas Hills and Mr. Levine will be an
advisor to the company, according to Mr. Berger.
The plan is for Tim White, ARCS COO, to head up the company and report to PNC's
Scott Bassin.
The acquisition is expected to close in the third quarter.
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