Wells Fargo has agreed to sell its non-agency third-party Commercial Mortgage Servicing business to Trimont, marking a significant shift in the commercial real estate landscape. This deal will elevate Trimont to become the largest servicer of commercial real estate securitized debt in the United States.

Trimont, established in 1988 and primarily serving non-bank and alternative lenders, will oversee a combined $640 billion in loans across the U.S. following the completion of the transaction. The deal, which is expected to close in early 2025, will position Trimont as a pivotal player for real estate capital providers.

Jim Dunbar, Chair of Trimont and Partner at Värde Partners, described the transaction as strategically significant, enhancing Trimont’s role in the commercial real estate sector.

Wells Fargo is focusing on its core business areas and has seen its stock rise approximately 15% this year. Kara McShane, Executive Vice President and Head of Wells Fargo Commercial Real Estate, affirmed that the sale aligns with the bank’s strategy to concentrate on its core consumer and corporate services.

The funding for the acquisition will come from Värde Partners, which has owned Trimont through its investment funds since 2015. The sale comes amidst a challenging period for the banking industry, marked by high interest rates and declining commercial real estate valuations due to increased office vacancy rates.

The deal’s financial terms were not disclosed. Wells Fargo Securities served as the exclusive financial advisor to Wells Fargo, while J.P. Morgan Securities and Goldman Sachs advised Trimont and Värde Partners on the transaction.