Citibank has sold servicing rights for a $2.6 billion real estate loan portfolio to CWCapital LLC, the companies announced on Wednesday.

The portfolio includes around 2,200 Fannie Mae multifamily loans with an average unpaid principal balance of $1.2 million. A sales price wasn't disclosed.

CW also recently created a new small loan servicing group and plans to create a small loan origination team in the first quarter of 2012, focusing initially on the west coast.

We are pleased to complete this transaction and to enter into the multifamily small loan market, said Michael Berman, president and CEO of CWCapital, in a statement. I am equally confident that our expertise in multifamily financing will ensure the successful launch of our new small loan originations platform.

Citi's decision to sell the portfolio is consistent with its strategy of reducing assets in Citi Holdings, Citi Group's portfolio of non-core operating businesses and assets. Citi will continue to be a Fannie Mae [Delegated Underwriting and Servicing] lender through Citi Community Capital, Citi's community development lending and investing group, Citibank said in a statement.

CWCapital, a subsidiary of Fortress Investment Group-owned CW Financial Services LLC, now has a servicing portfolio of $16 billion. Among its largest properties is Stuyvesant Town and Peter Cooper Village, a complex of over 11,000 apartment units on the east side of Manhattan.

CW took over the buildings in 2010 after a after a group of investors led by Tishman Speyer and BlackRock defaulted on a $5.4 billion purchase of the property.