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Walker & Dunlop buying CWCapital in $220M deal

BETHESDA, Md. (AP) -- Commercial mortgage company Walker & Dunlop Inc. is buying lender CWCapital LLC in a cash-and-stock deal valued at $220 million, which will create one of the largest U.S. commercial real estate lenders.

Walker & Dunlop said Friday that it will pay $80 million in cash and about $140 million in company stock.

CWCapital is a subsidiary of CW Financial Services LLC, which is owned by Fortress Investment Group LLC. The company lends to the multifamily, health care and commercial real estate industries. Last year CWCapital, based in Needham, Mass., originated $3.7 billion of loans.

CW Financial is expected to become Walker & Dunlop's biggest shareholder once the buyout closes, which is targeted to occur within the next 90 to 120 days.

Walker & Dunlop is based in Bethesda, Md.