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FOR IMMEDIATE RELEASE
Marquette Financial Companies to acquire
Silver Construction Capital, LLC
Company continues expansion of its specialty real estate financial business segment
MINNEAPOLIS – (Jan. 6, 2006) – Marquette Financial Companies, through its Phoenix-based subsidiary Meridian Bank, NA, has completed an acquisition of Silver Construction Capital, LLC, a specialty real estate finance company, and Silver Title Company, LLC, their affiliated title insurance agency, based in Fredericksburg, Va. Silver Construction provides construction financing for locally owned builders in the eastern United States.
The deal closed Dec. 31, 2005. Terms were not disclosed.
Founded in 1999, Silver Construction Capital provides construction and construction-related loans to independent homebuilders. To date, Silver has served approximately 250 builders with 2,000 loans outstanding totaling $266.9 million. Silver has achieved rapid growth through an innovative business model that provides premium loan services to the largely underserved independent, local homebuilders who comprise 60 percent of the overall homebuilding market.
Silver operates out of three Virginia offices, including Fredericksburg, Richmond and Winchester. Marquette Financial said it plans to invest capital to allow the business to expand into additional markets.
The acquisition leverages Marquette Financial’s existing real estate financing expertise, while expanding the firm’s presence in the East. Structured under Meridian Bank, Silver is the third operating company focused on the residential real estate development and construction finance market. Minneapolis-based Builders Mortgage Company, LLC, is a residential construction and land development financing company with more than $180 million in loans to residential contractors and developers in Minnesota, western Wisconsin and Florida. Earlier this year, Contractors Financial Services, Inc., was acquired. Based in Redland, Calif., it provides construction loans to builders for affordable housing in the Southwest. Current loans outstanding are approximately $50 million. Meridian Bank also has a residential construction lending division with $40 million in loans outstanding.
“Acquiring Silver rounds out our construction lending operations,” said Ron Stratton, president of Builder’s Mortgage, who will oversee Silver operations. “We’re becoming a large player in this particular lending segment. We now have offices from Virginia to California, and from Phoenix to Minneapolis.” Susan Bowman, president of Silver, will report to Stratton. All existing Silver management and staff will remain in place and all three Silver offices will remain open following the acquisition.
“Silver is an excellent addition to our portfolio of companies,” Stratton said. “Their management team is excellent, and their historical operating results show a company with great potential. We look forward to expanding in other markets with strong growth opportunities.”
“We are pleased to have new ownership that not only has complementary expertise and holds similar values, but also provides needed capital to help us grow into new markets and serve more builders,” said Bowman.
About Marquette Financial Companies
Marquette Financial Companies is a privately held financial services company with a portfolio of operating companies focused on providing financial services to businesses and their owners. With assets totaling $1.5 billion and capital resources in excess of $375 million, Marquette operates in 32 states with more than 800 employees. Marquette is part of the Pohlad family holdings, which also include significant interests in the beverage, entertainment and real estate industries, as well as the ownership of the Minnesota Twins Major League Baseball team. For more information, visit www.marquette.com.
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