Real estate appraisal, valuations, HOA, commercial trustee services and REO asset management company the LRES Corporation has acquired Pennsylvania-based Keystone Asset Management, Inc., according to an announcement by the company. Terms of the deal were not disclosed.
The deal, described as a “definitive agreement,” is expected to close on September 1 and will see both companies operating under the LRES Corporation name. Both companies have a relationship established by previous collaborations, and the decision to make the acquisition was one of relative ease according to LRES company leaders.
“Keystone has been a well-known and respected player in the REO/Asset Management business as well as the appraisal and valuation businesses for over twenty years. We know the management team well and have admired their growth, innovation, and resiliency. It was an easy decision to join forces,” said Roger Beane, CEO of LRES in a statement announcing the acquisition.
For Keystone’s part — which describes its specialties as default management, real estate investment and origination support — a more dedicated partnership has been bandied about by leaders in both organizations for some time, and will now become more formalized after the deal closes at the beginning of next month.
“Roger and I have talked for a long time about finding a way to align forces,” said Jane Hennessy, founder of Keystone in the announcement of the deal. “We are delighted that this acquisition has occurred. LRES brings an additional layer of Tier One delivery capabilities. It is an exciting time for our team.”
The formalization of the company’s new acquisition makes mutually beneficial sense for both organizations according to Ryan Hennessy, CEO of Keystone.
“Having known the LRES team for many years, I’m extremely excited,” he said. “The two companies have a lot in common, have had a great working relationship over the years, and present a formidable solution to the REO and valuation ecosystems.”
This acquisition is also designed to expand the capabilities of LRES in the servicing solutions channel as well as adding a nice logistical bonus to the organization, according to LRES President Mark Johnson.
“Keystone brings with it tremendous talent and technology capabilities,” said Johnson in a statement accompanying the announcement of the acquisition. “An exciting byproduct of this union is that we now have a talented team located in the Eastern time zone.”
Earlier this year, LRES appointed H. Marc Helm to serve on its board of directors. Helm, who previously co-founded and served as the president and CEO of Reverse Mortgage Solutions (RMS) from 2007 to 2013, at one time saw that company grow into the largest Ginnie Mae HMBS issuer and one of the biggest originators of reverse mortgages in the United States.