New York-based real estate trust MFA Financial Inc. on May 6 announced it is acquiring the remainder of its ownership interests in Greenville-based Lima One Capital, Inc., one of the nation’s largest business purpose loan (BPL) providers.
Lima One’s portfolio and assets are in the $1.2 billion range, according to the MFA announcement, and the acquisition comes after a multi-year partnership between MFA and Lima One, whose executive team is expected to remain in place and whose headquarters are expected to remain in Greenville.
“When I joined Lima One in 2018, identifying additional capital providers was crucial to growing our business and we were fortunate to have MFA move from a whole loan buyer to a true strategic partner that same year,” Lima One CEO Jeff Tennyson said. “Our team has built a best-in-class platform with a strong culture and brand, and we are excited to take this partnership to the next level by fully combining our respective capabilities.”
MFA President and CEO Craig Knutson said the acquisition will strengthen MFA’s business purpose loan investment strategy.
“We are pleased to acquire the Lima One platform and to welcome the entire Lima One team to MFA,” he said.
Founded in 2011, Lima One is a leading nationwide originator and servicer of BPLs. Lima One serves the dynamic financing needs of real estate investors through a diverse product offering, including fix-and-flip and new construction loans, single and portfolio rental property loans, and stabilized and value-added multifamily property loans. Since inception, Lima One has funded over $3 billion in loans across its product suite.
The acquisition, which will end with Lima One becoming a subsidiary of MFA, is expected to close in the third quarter