Jones Lang LaSalle in Chicago has agreed to acquire Oak Grove Commercial Mortgage, to expand its debt-finance offerings.
JLL expects the deal to be margin accretive. Financial terms weren't disclosed. JLL expects the deal to close by the end of the year.
Oak Grove Capital, the operating name for Oak Grove Commercial Mortgage, provides debt financing for multifamily real estate and housing for seniors. The St. Paul, Minn., company's offerings include Fannie Mae, Freddie Mac and HUD/Ginnie Mae lending services.
"The multifamily sales and financing market represents a substantive portion of all capital markets activity in the United States," Greg O'Brien, chief executive of the Americas for JLL, said in a news release.
Oak Grove holds a $14 billion loan-servicing portfolio, which will provide profitable annuity revenue, JLL said. In addition to loan servicing, Oak Grove provides loan origination, underwriting and asset management.