Wintrust acquires Chicago Deferred Exchange
ROSEMONT - Wintrust Financial said it has acquired Elektra Holding Co., the parent company of Chicago Deferred Exchange Co., for approximately $51.9 million.
CDEC is a premier provider ofqQualified intermediary services for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031. Under IRC Section 1031, a taxpayer may defer the gain on the sale of certain investment property if the taxpayer utilizes the services of a Qualified Intermediary.
CDEC has handled more than 8,000 like-kind exchanges in the past decade for taxpayers nationwide. The transactions typically generate customer deposits during the period following the sale of the property until such proceeds are used to purchase a replacement property. The deposit flows result in a source of low-cost deposits. During 2018, deposits from CDEC customers averaged over $1 billion.
"CDEC's services will augment the comprehensive range of services that Wintrust provides to our customers in the commercial real estate market," said Wintrust President and CEO Edward J. Wehmer. "This transaction also provides Wintrust with a new fee-generating business and a significant new potential source of low-cost deposits.
" Together, we are well-positioned to employ our expanded resources and scale to further enhance CDEC's growth, strategies and client service," he added.
CDEC CEO Mary Cunningham will continue to serve in the same capacity.
Kirkland & Ellis LLP acted as Elektra's transaction counsel, and Schiff Hardin LLP served as transaction counsel to Wintrust.