Capital One Financial Coporation made a formal announcement Friday that the company had entered into a deal to acquire privately-held beech Street for an undisclosed amount. The deal is expected to wrap up in the last quarter of this year. Both companies did not disclose any terms of the deal.

Founded by CEO Grace Huebscher, Beech Street grew into a multifamily mortgage firm with a USD10 billion portfolio. All of the loans are insured by government entities in 10-year terms. "We share Capital One's vision of bringing together two complementary and high performing teams to boost our position in the multifamily space," Huebscher said. Company headquarters are located in Bethesda, but have offices in strategic areas such as New York and Alabama.

Capital One has a USD296.5 billion portfolio as of year to date. The company is pleased with the acquisition and its influence to the company's market position. Michael Slocum, current President of the lender's Commercial Banking Group, said, "The combination of Capital One's multifamily business and Beech Street will make us a top 5 national multifamily originator and one of the few institutions in the US capable of offering clients a one-stop banking solution encompassing a full range of banking services."