Escolar Documentos
Profissional Documentos
Cultura Documentos
July-August 2012
Q&A
Josh Zegen
RICK LYON
POWER PROFILE
$300,000,000
1 Battery Park Plaza New York, NY 10004 | 212 972 3600 | www.meridiancapital.com
July-August 2012
/ Contents
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Jotham Sederstrom Editorial Director Daniel Geiger Daniel Edward Rosen Staff Writers Sam Chandan Joshua Stein Columnists Michael Stoler Contributor
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Editors Letter 02 News Exchange 04-10
Mortgage originations, note sales, investments, industry research 100 Church Street secures $230 Million loan HFF: Long Island City hotel refinanced West 30th Street Tower gets financing Investors Bank to buy Marathon Bank No sale for Deutsche Banks RREEF Fitch: AAAsf-rated CMBS head of the class
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Barbara Ginsburg Shapiro Associate Publisher Robyn Weiss Director of Real Estate Ed Johnson Production and Creative Director Peter Lettre Photo Editor Lauren Draper Designer Lisa Medchill Advertising Production
Workforce 18
OBSERVER MEDIA GROUP Jared Kushner Publisher Elizabeth Spiers Editorial Director Christopher Barnes President Barry Lewis Executive Vice President Jamie Forrest Associate Publisher, Senior Vice President Michael Woodsmall Editorial Manager
Q&A 28
Scheme of Things 14
Steins Law 16
Clarity On How Mortgage Recording Tax Applies to Interest Rate Swaps by Joshua Stein
Of Interest 32
An index of all the people, places, addresses and companies mentioned in this issue
Zarah Burstein Marketing Manager Mark Pasquerella Controller Tracy Roberts Accounts Payable Manager Accounts Receivable Ian McCormick
European Recession, the American Fiscal Cliff and Commercial Mortgage Lending by Sam Chandan
Competition Heats Up
For the July/August issue of The Mortgage Observer, I got to know Rick Lyon from Capital One Bank. And, equally important, I learned that those Vikings in their adswell, theyre not Vikings at all. But, rather, theyre Visigoths. This really brought up an interesting point: How does a bank so well known for the ads promoting its mono-line credit card business maintain that image while growing and diversifying in areas like commercial real estate lending, which Mr. Lyon heads up for the northeast? As it turns out, by just doing itby gobbling up some other banks that had a presence in commercial real estate and by carving out a niche in the New York tristate area as a lender for a lot of the workforce housing that dots the outer boroughs. Mr. Lyon talked to me about Capital Ones lending philosophy for commercial real estate, as well as his background and how he got his start. With the most recent Greek election now behind us and a pro-bailout, coalition government forming there, columnist Sam Chandan takes a look at how the ongoing financial crisis in Europe is affecting the commercial real estate market here at home. Even in light of the election results there is obviously no short-term solution for the troubles plaguing Europes southern countries, and the fallout continues to have ripple effects. Stay tuned. Contributor Michael Stoler for this issue took an in-depth look at financing for specialty assets. With the availability of financing for even construction projects coming back, these assets can still prove tricky to get funded. Think hospitality, health clubs, bars and golf courses. Michael, as always, uses his unparalleled industry expertise and knowledge to delve into how these projects, in the end, are financed. And for our second feature this month, Daniel Geiger looks at the phenomenon of smaller lenders outside the city zeroing in on the Manhattan marketparticularly the still-hot multifamily market. Competition is fierce and more and more of them are looking to be players and originate loans in the Big Apple. Have a great summer. Well be back in the fall with our September issue and more profiles, deals and analysis.
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Originations
$230 Million Wells Fargo Loan Secured for SL Greens 100 Church Street
building pre-recession, while at Wachovia Bank. That loan was originated, if I remember correctly, late 2007 or early 2008, right when we were going into the financial meltdown that weve experienced over the last several years, Mr. Rosenberg recalled. SL Green also held a mezzanine position on the loan they held one of the junior positionsand the prior borrower was unable to lease up the property and obviously based on the market meltdown. SL Green was able to foreclose out that interest and has just done a phenomenal job stabilizing the building taking the building from somewhere in the mid-50s to its current 85 percent occupancy level. In addition to the refinancing, the building received another recent boost: the city of New York, which occupies 372,520 square feet of space there for its law divisions offices, renewed its lease for 20 years. That lease was set to expire in October of next year and covered floors two through six, 20 and part of the concourse.
SL Green Realty Corp. has refinanced 100 Church Street, after looking for several months for a loan to place on the building. Andrew Mathias, the REITs president, confirmed to The Mortgage Observer that the loan, from Wells Fargo, had closed June 15. Proceeds from the $230 million, 10-year loan will be used for general corporate purposes, the company said. It bears an interest rate of 4.7 percent. SL Green took ownership of 100 Church Street after taking joint venture partner Gramercy Capitals interest in the building. The two foreclosed on the building in January 2010 when the previous owner, Sapir Organization, defaulted. As previously reported, Sapir had $145 million of senior debt and $85 million of mezzanine debt in the building. Wells Fargo has a longstanding relationship with SL Green and is thrilled to provide financing for 100 Church in light of the exciting changes in the downtown New York City office market, Robert Rosenberg, a managing director of real estate capital markets at Wells Fargo, said. Mr. Rosenbergs team on the transaction included Rick Oberman, a vice president in the same division. Wells Fargos longstanding history with 100 Church Street is in addition to Mr. Rosenbergs own history with the building. He helped to place previous financing on the 1.05-million-square-foot
Exchange
development located at 500 West 30th Street, just off the Hudson Yards development site. The 32-story tower will include 385 rental The Holiday Inn Manhattan View, apartments, retail space and parking. a 136-key hotel at 39-05 29th Street in Joanna Rose, a Related spokesperLong Island City, has been refinanced, son, told The Mortgage Observer thanks to a team at HFF. that the project is expected to go Managing director Robert Delitsky Holiday Inn Manhattan View and director K.C. Patel arranged the vertical by the end of the year. Alan Wiener, group head of Wells $25 million, five-year, fixed-rate loan on Fargo Multifamily Capital, said that the loan is in behalf of Queens Plaza North, LLC. The hotel was line with the types of projects the bank tends to ficompleted in December 2008 and is situated near nance in the New York area. Its going to be an the Queensboro Bridge and Northern Avenue. 80/20 and even though its outside the Hudson RivMr. Patel declined to name the lender or the rate, er Yards, its right across the street, Mr. Wiener exciting confidentiality, but said that the $25 million plained. Were providing the letter of credit and loan will be partly securitized. its being financed by bonds issued by the Housing Finance Agency. Those bonds are also backed 50 percent by JP Morgan Chase. The Real Estate Finance Group at law firm Morrison & Foerster advised Wells Fargo on the loan. Mark Edelstein, its chair, led, along with Houston-based development company Hines has partner John McCarthy. received an all-equity investment from J.P. Morgan
Asset Management for 7 Bryant Park, the 28-story office tower designed by Pei Cobb Freed & Partners that, when completed, will overlook Bryant Park and beyond. J.P. Morgan Asset Managements investment is believed to be worth upwards of $350 million, industry sources told The Mortgage Observer. With the equity investment intact, both Hines and joint venture partner Pacolet Milliken Enterprises, Inc. will move forward with construction, which is set to begin in the fourth quarter of this year. First occupancy is slated for the fourth quarter of 2014. The bank is offering 100 percent of the financing on an equity basis. The 470,000-square-foot building, to be designed by architect Henry N. Cobb, will offer spaces for major tenants looking to occupy 100,000- to 250,000-square-foot floorplates. The buildings faade will be punctuated by a concave sculptural detail that cuts into the building in an hourglass shape, Hines said. The new office space will offer 10-foot finished ceilings and column-free floor plans, and is slated for LEED Gold certification.
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Kevin Cummings Investors Bank has entered a definitive agreement to acquire Marathon Banking Corp. for $135 million in cash, it said last week. The deal will deepen Investors reach into the New York market while allowing it to carve out a niche in the citys Greek community. Kevin Cummings, president & CEO of Investors Bank, told The Mortgage Observer that the acquisition is part of the Short Hills, N.J., banks strategy to deepen its already significant New York franchise. He estimated that 54 percent of Marathons portfolio is in commercial real estatewith a significant focus on multifamily. This continues our strategic initiative to expand in the boroughs, in the greater New York area, Mr. Cummings said. But certainly our New York franchise is very significant already. We kind of went in there in a big way and opened up our loan production office in January 2010, and that office has originated over, I would say through today, over $1.5 billion of loans. Marathon is the U.S. subsidiary of Piraeus Bank S.A., and so likely familiar to the citys Greek communitythe bulk of which is concentrated in the Astoria neighborhood of Queens. With the ongoing financial crisis in Greece, Mr. Cummings pointed out that the acquisition provided the upside of continued
Miscellany
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Industry Research
Investment manager BlackRock has launched a global securities division designed to capitalize on the firms real estate investment and fundamental equity investment expertise through investments in real estate securities. Mark Howard-Johnson, formerly of Building & Land Technology, has been appointed to head the division, which is expected to take on about six more investment professionals by the end of the year, the company said. As global head of Real Estate Securities Management, Mr. Howard-Johnson will lead a team whose mandate is to source investible trends in real estate. BlackRock real estate investments span a wide range of strategies which now, with the addition of the active strategy, will be even more integrated and complementary of each other, Mr. Howard-Johnson said in a statement. Im proud to be part of this superior team and look forward to strengthening the firms product offering for the benefit of our clients. BlackRocks global head of Real Estate Jack Chandler said that the move was a natural extension of the firms robust real estate capabilities, adding that it will further strengthen our ability to offer our institutional and retail clients an unrivaled set of real estate solutions. Mr. Howard-Johnson was previously chief investment officer at Building & Land Technology, where he launched its real estate securities management division. He was also global head and chief investment officer of REIT management at Goldman Sachs Asset Management.
Industry Research
March 31, 21012 to 88.1 percent as of April 30, 2012. At the end of this past February, CMBS-collateralized loans were at 86.9 percent. Meanwhile, looking back a full year to the figure as of April 30, 2011, they stood at 80.9 percent. Commercial real estate loan prices increased for a fourth consecutive month in April and are up strongly from a year ago, DebtX CEO Kingsley Greenland said. Improving CRE fundamentals,
along with a decline in Treasuries and a decrease in credit spreads, drove loan prices higher in April. An investor flight to safety, caused by Spains growing banking crisis and concerns about Europes general financial health, has helped to push Treasury yields down. For this most recent data, Debt X priced 55,803 commercial real estate loans. They had an aggregate balance of $767.6 billion.
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Look
Most important in all of our transactions is that the borrower has capital, or the proverbial skin in the game.
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owner-occupied commercial, pub/restaurant, self storage, garage, warehouse and brownstone/ townhouses. Recent transactions that we have provided financing for include acquisitions, cash-out refinancing, partner buyouts, leasehold mortgages, leasehold fee purchases and bridge loans, said Joseph Murphy Jr., president of Country Bank. The bank recently provided $3.2 million in financing for an investor-owned, single-tenant restaurant property on the West Sides Restaurant Row. The loan was fixed-rate for five years, requiring the borrower to provide full recourse. In the Park Slope section of Brooklyn, the bank provided a $1.5 million fixed-rate loan with full recourse for an owner-occupied building. Mr. Murphy said that other recent deals have included financing for the acquisition of a foreclosure short sale of a non-flagged, 100-key, limitedservice hotel in Queens. That hotel was over-leveraged with a CMBS loan, had lost its flag and was being operated by the special servicer, he said. Progressive Credit Union, also based in Manhattan, provides specialized financing for unique real estate assets. Many of the tristate areas diners, garages, and auto body and repair shops have secured permanent financing from this $600 million credit union. Over the past three years it has been responsible for the acquisition and construction financing of resort properties on Fire Island and a lifestyle hotel and cabaret on the West Side. Robert Familant, its treasurer & CEO, said Progressive has a niche in providing financing for unique assets that require going the extra mile in the underwriting process. Risk, he said, determines many factors as well. We have provided financing for distressed debt, construction and investor-owned luxury condominiums for rental and are open to any transactions that provide suitable collateral and adequate debt coverage, Mr. Familant added. If you visit a local lender and request financing for a stand-alone restaurant or a franchise operation typically the response is no. A national lender that provides specialized franchise-restaurant financing is United Capital Business Lending,
a BankUnited Company. It offers loans of up to $10 million for a period of up to 10 years, and 100 percent financing. The Small Business Administration continues to be a source of financing for commercial real estate. A number of borrowers who are unable to secure bank financing have turned to local institutions that include CIT Bank-Small Business Lending,
banking partner, Country Bank, from the SBA for a Quality Inn located in Brooklyn. The property securing the loan is a four-story, 81-room, limitedservice hotel. The borrower was able to purchase the fee and recapture equity in the property. New York City is the Mecca of colleges and universities. Nevertheless, the city lacks dormitories and student housing facilities. For
ValueXPress, the New York Business Development Corp. and other local financial institutions that originate SBA 504 and 7A mortgage financing. SBA mortgage loans cater to owner-occupied property with higher loan-to-value than available in the private sector, Mr. Murphy pointed out. The SBA 504 Loan Program provides small businesses with long-term, fixed-rate financing. The 504 loans are made available through Certified Development Companies, the SBAs communitybased partners for providing the 504 loans. The 504 loans are typically structured with the SBA providing 40 percent of the total project cost, a participating lender covering up to 50 percent and the borrower contributing 10 percent. Under certain circumstances, a borrower may be required to contribute up to 20 percent of the total project costs. Last year, ValueXpress obtained a $4.5 million mortgage loan commitment with its New York
example, until two years ago Brooklyn College lacked its first dormitory. In the fall of 2009 a local developer of residential properties acquired land located less than two blocks from the entrance to the campus, and filed and secured permits. However, no commercial lenders were offering financing for the developers planned dorms. Subsequently, construction and mini-permanent financing was provided by private equity fund Madison Realty Capital. The borrower obtained $12 million in construction financing for a term of two years. Upon completing and renting the rooms, the developer secured permanent financing from New York States largest credit union, Bethpage Federal Credit Union. With the commercial real estate market in New York City and the region improving, expect more lenders to welcome the opportunity to finance these previously difficult-to-finance, specialty assets.
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Mortgage Charts
The Mortgage Observer has compiled a months snapshot of top commercial real estate financings in New York City. This month we take a look at refinances versus purchases, top recent lenders, total sales by borough and the six zip codes that saw the most action. Data are drawn from Actovia, which tracks mortgage information and streamlines leads from city records.
Top 10 Lenders
New York Community Bank maintained Mays top spot among lenderswith 152 transactions reported. New for May are TD Bank, which came in with 21 transactions, and M&T, which saw 18. The Top 10s total decreased from 497 in April to 435 in May, 35 percent of which was from New York Community Bank. BANK APR 2012 108 80 66 48 41 37 33 31 30 23 BANK MAY 2012
New York Community Bank JPMorgan Chase Signature Bank Capital One Flushing Savings Bank Astoria Federal Savings Bank Dime Savings Bank of Williamsburgh TD Bank Wells Fargo M&T
152
67 55 33 25 24 22 21 18 18
JP Morgan Chase Astoria Federal Savings Bank US Bank Capital One Flushing Savings Bank Deutsche Bank Investors Bank
204
288
32 32 26 23 20 20
181 128 73 50
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M.O. Columnists
European Recession, the American Fiscal Cliff and Commercial Mortgage Lending
can reduce the cost of sovereign financesuch as urope stayed its most immediate might be the case under the terms of a Hamiltonian existential threat when parties committed redemption fundresolution will remain elusive. to the Hellenic bailout carried Greeces The next moment of crisis will never be far off, mid-June election, the second election in as many whether it relates to banks in Spain or the threat of months. New Democracy eked out a slim plurality a continent-wide bank run. of votes for the Parliament of the Hellenes and, Balancing political reality with the glaring need with the expected support of the smaller PASOK for a comprehensive plan to address party, will hold to the austerity measures Europes problems is a task that falls agreed to in exchange for 240 billion to German Chancellor Angela Merkel. euro (approximately $300 billion) in As the crisis has spiraled, Chancellor financial support since May 2010. Merkel has signaled provisional Investors natural response to the support for a bond program that would Greek results conveyed a sense of bring sovereign indebtedness back in relief, echoed on the margins in easing line with Maastricht Treaty levels. But measures of systemic financial stress in exactly what happens next is unclear. Europe and the United States. Leading And therein lies the problem. up to the vote, monetary policymakers Commenting at the Group of 20 around the world had been positioning Sam Chandan summit that followed the Greek vote, to brace financial markets against a French President Franois Hollande Greek exit from the eurozone. Such a offered that in this permanent race between move would have disrupted any remaining notions events, speculation and political decisions, political of structural stability and driven borrowing costs in decisions must get ahead of the uncertainty. It is Spain, Italy and other large economies well beyond obvious to everyone involved that the uncertainty manageable levels. fomented by a glacial decision-making process is Contagion across the eurozone is hardly taking a toll, both on the economic outlook and theoretical. Italys short-term financing costs have the costs of resolving the crisis. Bank of England doubled between May and mid-June, rising to four Governor Sir Mervyn King echoed this view, saying times their early 2012 low. The results of the most that the impact of the euro area crisis has been to recent three-year bond auction suggest no relief as create a large black cloud of uncertainty hanging yields on those bonds increased to 5.30 percent. To over not only the euro area, but our economy, put this in perspective, Americans can finance their tooand the world economy as a whole. That homes at lower interest rates. characterization of the crisis held water going into While the prospect of financial market seizure may the Greek vote and it remains true after the vote. have receded temporarily, the fundamental issues The costs of exaggerated uncertainty are the that imperil stability across the Continent remain realm of neither the anecdotal nor the ideological. unresolved. Absent consistent bank regulation and For European investors and businesses, the a European program of debt mutualization that
chance that assets may be redenominated in a new currencyor in the euro of a fundamentally altered eurozonehas chilled activity to an extent that Europe has effectively fallen back into recession. The United States may not fare much better if the year-end Fiscal Cliff is left unaddressed until the 11th hour. Businesses and households will delay major expenditures if after-tax incomes are less predictable. Seeking to quantify the intuitive relationship, current research by Scott Baker and Nick Bloom at Stanford University and Steve Davis at the University of Chicago suggests that political uncertainty takes a substantial toll on growth. Their foray into the difficult area of study puts the cost of uncertainty between 2006 and 2011 at 2.3 million American jobs. Conceding a wide confidence interval on the exact number, the results of their work still offer a sense of the magnitude. While the Greek drama and the larger European crisis play out on center stage, the impact is being felt in myriad corners of the financial markets. Capital flows into the United States have pushed yields on the Treasury to new historic lows, below the prevailing rate of inflation. Lower Treasury yields are not a vote of confidence in the American economic outlook per se, but do reflect that Treasuries are still the safest haven for wanderlust global capital. For corporate bonds, spreads are higher and volatility measures have risen. European headwinds represent a significant obstacle for real economic activity in the United States. The lending market is impacted as well. Given the special position of Fannie Mae and Freddie Mac in relation to the market for guaranteed bonds, lower Treasury yields generally mean lower apartment financing costs. That is a benefit and a potential challenge for apartment investors, inasmuch as borrowers are taking on undue interest rate risks. Although I am in the minority, I have argued that apartment investors and lenders are under-assessing these risks. On the other side of the coin, MBS without a guarantee becomes less competitive as global conditions demand higher yields for risk investments. For borrowers outside of the apartment market, volatility in corporate bonds undermines CMBS lending and issuance. Inasmuch as the latter might be more attractive to investors if it was diversified into apartments and not consistently over-weighted to retail and hotel exposures, the strengthening of the Agencys advantage impedes its progress toward recovery. Sam Chandan, PhD, is president and chief economist of Chandan Economics and an adjunct professor at the Wharton School. The views expressed here are his own. He can be reached at dsc@chandan. com.
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David Eyzenberg, formerly the managing director and head of commercial real estate at financial advisory firm NewOak Capital, has joined Avison David Eyzenberg Young as a principal. He will focus on raising capital and providing the firms clients investment banking services, among other responsibilities. At NewOak Mr. Eyzenberg completed numerous assignments related to property financing and CMBS CDO valuation assignments. Arthur Mirante, principal and tristate president at Avison Youngand himself new to the firmsaid that Mr. Eyzenbergs addition would boost its capital markets team. Davids expert knowledge of the intricacies of commercial real estate financing, coupled with his deep understanding of equity/joint venture structuring, provides us with a competitive advantage in providing the highest level of consulting services to our institutional and private equity clients, Mr. Mirante said.
investment professionals by the end of the year, the company said. BlackRock real estate investments span a wide range of strategies that now, with the addition of the active strategy, will be even more integrated and complementary of each other, Mr. HowardJohnson said. Im proud to be part of this superior team and look forward to strengthening the firms product offering for the benefit of our clients. BlackRocks global head of real estate, Jack Chandler, said the move was a natural extension of the firms robust real estate capabilities.
joint ventures, as well as Meridians leading position in debt capital markets, the companys expansion into equity services is a natural platform extension at a time Robert Corso Jr. when market demand for these services is historically high, Mr. Steier said. For his part, Mr. Corso said he was excited and proud to be a part of Meridians best-in-class team of dedicated professionals and to lead the cooperative and condominium finance group for the firm.
The Mortgage Bankers Association is searching for a new president and CEO after announcing at the end of May that David Stevens would be leaving as of June 30. Chief of staff David Stevens and senior vice president Marcia Davies will fill in until a permanent replacement is found. Mr. Stevens joined the association in May 2011 from the Federal Housing Administration, where he was commissioner and assistant secretary for housing. He will now head up SunTrust Mortgage as president.
Akash Sharma has been hired as an acquisitions associate in the New York office of Clairvue Capital Partners. In his new role, hell support the underwriting and execution of the San Akash Sharma Francisco-based firms investment opportunities. Mr. Sharma was previously an investments associate at real estate and infrastructure investment firm CIM Group. Akash joins our team of professionals at an exciting time, said Brendan MacDonald, a partner at the firm who manages the acquisitions team. We are seeing a growing need for liquidity within commercial real estate funds and investment vehicles. Debt maturities, slow economic growth and new financial regulations are each contributing to a growing need for recapitalizations and secondary sales of real estate funds and investment vehicles. Mr. MacDonald went on to say that Mr. Sharmas past experience would help the firm identify and unlock value in real estate investment vehicles.
Robert Fagin and Philip Cushman have joined Cowen Group as director of research and head of Equity Sales at Cowen and Co., respectively. Both are based in New York. Robert and Philip bring significant experience and talent to enhance our equity platform from both the content and sales perspectives with a focus on our core industry verticals, Cowen and Co. CEO Jeff Solomon said. I look forward to working closely with them and the other members of our team as we continue to expand our product and service offerings to best meet the needs of our clients. Mr. Fagin was previously co-director of U.S. equity reseach at Jefferies, where he also oversaw global technology, media and telecom research. Mr. Cushman was also most recently at Jefferies, where he was a managing director and head of global equity product management.
Investment manager BlackRock has tapped Mark Howard-Johnson to head up its new global securities division. The division is designed to capitalize on the firms real estate investment and fundamental equity investment expertise through investments in real estate securities. Mr. Howard-Johnson most recently served as the chief investment officer at Building & Land Technology. As global head of real estate securities management, Mr. Howard-Johnson will lead a team whose mandate is to source investible trends in real estate. The team is expected to take on about six more
Meridian Capital Group continues to grow, with several recently announced hires. Robert Corso Jr. has joined the company as senior vice president and managing director in charge of its Cooperative and condominium finance group, a newly created position. His past positions include vice president and managing director at Brown Harris Stevens, where he ran its commercial mortgage brokerage group. Peter Steier has also joined Meridian, as managing director and head of equity capital markets. Mr. Steier joins from the Carlton Group, where he was a managing director. In his new role, hell work to build a full-service equity capital markets platform to stand alongside Meridians debt capital markets work. With the current trend of recapitalizations and
Garett Stoffels has been appointed senior managing director and head of equity capital markets at BGC Real Estate Capital Markets. Hell report to Michael Lehrman, Garett Stoffels global head of real estate at BGC. Having worked with Garett for many years, Ive long admired his extensive relationships, deep knowledge base and distinguished career in real estate investment banking and capital markets, Mr. Lehrman said. Garetts appointment marks the continued expansion of our real estate equity and debt capital markets capabilities and offers a natural complement to the leasing, management, investment sales and other services already offered by Newmark Grubb Knight Frank. Mr. Stoffels was previously global head of Cantor Fitzgeralds Private Capital Group.
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One of the hallmarks of Capital One is that we tend to be a very conservative institution.
depository institution in the New York tristate area, with deposits exceeding $84 billion and a managed loan portfolio of more than $143 billion. Then, in 2009, Capital One made another acquisition Washington, D.C.,s Chevy Chase Bank, which it picked up for $520 million in cash and stock. As all of the acquisitions were being put together and a commercial banking business built, Mr. Lyon arrived from Wachovia. One of the hallmarks of Capital One is that we tend to be a very conservative institution, he said. While we take credit risks on credit cards, obviously, we have a very good model as to how to do that and manage that risk and the appropriate returns. But as a company we tend to keep more capital than most other banks have historically kept. Capital One, he said, is not trying to eke out an extra 25 basis points by taking unnecessary risks. When the subprime mortgage crisis and credit crunch hitthose aforementioned tougher timeshaving capital on hand became a real asset. The first thing that happened in the Great Recession was a liquidity crunch, Mr. Lyon said.
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of branches and banking businesses so we fund ourselves in the capital markets. That works very well when its all good, but in the tougher times its good to have dependable deposits for funding and diversification. Three other acquisitions that would significantly affect the companys direction and, subsequently, its commercial real estate lending philosophy, took place a decade later. In a strange twist, Capital One agreed to buy New Orleans-based Hibernia Bank in March 2005 for $5.4 billion. Then, that August, Hurricane Katrina devastated the Gulf Coast area. We were supposed to close a day or two after Katrina, Mr. Lyon remembered. That got delayed a little bit but we still did what we said we were going to dowe still bought the bank a couple of months after Katrina. That was the first foray for Capital One into banking. In the end, a renegotiated price of $4.9 billion was settled on to reflect the fact that hundreds of Hibernia branches had been damaged during Katrina, and the deal went through. The following year, Capital One acquired North Fork Bank, a New York-area lender, for $13.2 billion, which created the third-largest retail-
We were able to stay strong through that part of the cycle, and then the next thing was capital requirements. We had good capital and so it allowed us to continue to grow through the recession. That recession-time growth included some of the banks acquisitionslike Chevy Chase. Some recent deals Mr. Lyon and his team have put together include the refinancing of Jeffrey Gurals 40 Worth Street in Tribeca. The 702,815-square-foot Newmark Holdings building got a $101 million first mortgage from Capital One in May. Reached by phone, Mr. Gural, chairman of Newmark Grubb Knight Frank, said that Mr. Lyon had over the years become a good friend. In addition to business deals, theyre also involved in some of the same charities. Mr. Gural is president of the New York, New Jersey and Connecticut chapter of the Starlight Childrens Foundation, which is dedicated to helping seriously ill children. Mr. Lyon is on the board as well. When Capital One acquired North Fork, we had a large relationship with North Fork and as a result of them buying North Fork we made a decision to stay with Capital One rather than
July-August 2012
/ Power Profile
move the accounts to another bank, Mr. Gural explained. Its been a terrific decisionCapital One has been a great bank to work with. There are a lot of folks who are more philanthropic than I am in the real estate business talk to Jeff Gural, Mr. Lyon said for his part. Jeff is the definition of a menschif you know what a mensch isand I just got to know him, like him, and he got me involved in that organization. Hes also on the board of the Real Estate Councils for both Lincoln Center and the Metropolitan Museum of Art. A Villanova University graduate, where he got his degree in accounting, Mr. Lyon and his wife still live outside Philadelphia, though they have an apartment in New York, as well. Its a convenient jumping off point, considering his geographic area of responsibility spans Boston to D.C. and down through parts of the Gulf Coast. It makes visiting the couples three sons, all in various stages of their 20s, easier as well. Its perfect, Mr. Lyon said. One lives in New York, one lives in Philly and one lives in D.C. I can go up and down and connect with each one of my kidsmy wife sometimes travels with me. So we
are an Acela family. In the New York area, in addition to 40 Worth Street, Capital One has provided financing for Jamestown Properties $81.4 million purchase of 31-00 47th Avenue in Long Island City, known as the Falchi Building, and the $12.2 million sale of 141 apartment units at 3576-3578 Dekalb Avenue in the Bronx. Multifamily units in the outer boroughs like those on Dekalb Avenue are a big focus. We think of it as workforce housing, he said. Were not doing it and packaging it up and selling it to Fannie or Freddie, were doing it on our balance sheet. The multifamily portfolio is about $6 billion in the New York tristate area and its predominately in the boroughs of New Yorkin Brooklyn, the Bronx, Queenssome of it in New Jersey and Long Island, but predominately in the boroughs. With construction coming back in the city, Mr. Lyon pointed out that Capital One is very picky where these loans are concerned. We are very selective in our construction loans, he said, but we do construction. We did 33 construction loans last year, and that would
be about double what we did the year before, and we will continue to see good construction loans. Requirements include a good history that demonstrates an ability to get the project done. Their ability to execute is critically important, he said of requirements. So how you can build a building, how you execute and your resources is a critical thing. He went on to say that Capital One isnt here to provide high-octane, high-risk loans. There is no mezz group, for instance. Our culture is really to be more the tortoise than the hare, he said. Our clients appreciated that we were still breathing at the other end of the phone in December of 2008 and into 2009. We were doing thingswe were talking to clients. As for what keeps him excited about the industry after more than 30 years, he said the people. Probably the most exciting thing about real estate is the unique people I meet, he said. If youre a large corporate banker, you tend not to be sitting with the owner of the company all the time. Here I am sitting with folks who are owners, who are making their decisions Theyre fascinating people.
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July-August 2012
/ Feature
Outside Looking In
Smaller lenders, from far reaching lands, are zeroing in on the Manhattan market.
by Daniel Geiger
Garrett Thelander, an executive at Massey Knakal who leads the companys capital services group, was fielding offers for a financing deal he was recently arranging when he noticed many of the banks lining up to compete werent ones he was used to working with. There were a lot of players from out of town that you usually dont see here that were competing and they were competing hard, he said, describing it as a roughly $8 million deal for a commercial building that was owned by the buildings occupant. Peoples United, a Connecticut-based bank, wound up making the loan. Because it was a low-leverage deal, Mr. Thelander said the bank differentiated itself by pushing hard to lower its rates. Regional and local banks have the flexibility to undercut competitors on interest rates because of a roughly 200 basis point spread between what banks themselves can borrow at and what they charge customers for loans. They were competing against the bigger banks and they got very aggressive and they stood out because of that, and also because they were willing to close very quickly, Mr. Thelander said. I think you can tell from that their interest in pushing into this market in a bigger way. Given the strength of the Manhattan real estate market, lenders have long vied with one another to place debt, especially in transactions that would appear to have solid fundamentals or conservative leverage levels. But with many real estate markets still sputtering or flat around the rest of the country, more banks, especially regional players who in the past may have done only a sprinkling of deals, are seeking to lend in the city. I do think that more regional lenders are trying to do deals here, said Howard Applebaum, an executive vice president and chief lending officer at Sterling National Bank, a longtime local bank in the city. Its the strongest market in the country and it was barely wounded over the last three years. The vacancy rate in residential buildings is less than 1 percent. Its a very strong market and youre going to get a lot of players coming here, he said. Kevin Santacroce, an executive vice president
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Garrett Thelander
There were a lot of players from out of town that you usually dont see here that were competing and they were competing hard.
according to bankers in the city, are widening their criteria to find deals, including targeting smaller transactions that in the past might have been left to local banks. You are seeing bigger regional banks go after smaller transactions, said Dan Harris, an executive vice president and chief lending officer for Dime Savings Bank of Williamsburgh. The larger guys might prefer to put out $15 million or $20 million but theyll do much smaller deals to get a foothold here. Added Mr. Appelbaum: Part of that is the number of smaller banks has shrunken because they went under during the recession, so the bigger boys are coming in because they see an opening.
and chief lending officer for the Long Island local bank Bridgehampton National Bank, has himself been trying to position his banks entry into the city. Were really focused on the East End of Long Island but we have been growing in the city, primarily through the relationships we have with clients, Mr. Santacroce said. There is a such a strong tie with the Hamptons and Manhattan that weve been able to do a few deals there. Its just a market that we, like a lot of lenders, want to be in. Though outside banks have long been interested in entering into city deals, more banks like Peoples United, Webster Bank and First Niagra,
Pouring money into a cluster of deals, though time consuming for a banks loan officers, has an advantageous flipside. Its often better to do more work and diversify, Mr. Harris said. Its the old saying in banking that its better to have 20 $1 million loans than one $20 million loan. But the recent uptick in activity among regional players and hasnt come without pushing some boundaries of risk. Mr. Harris said he has seen competitors, particularly new entries in the market, adjust the cap rates they will accept on an investment. You might have a lender who wants to make
July-August 2012
/ Feature
Howard Applebaum
Its the strongest market in the country and it was barely wounded over the last three years. The vacancy rate in residential buildings is less than 1 percent.
amid the current period of rock-bottom rates. According to Ira Zlotowitz, president of Eastern Union Commercial, a commercial mortgage brokerage, the U.S. Department of Housing and Urban Development has also gotten into the multifamily lending business, offering 35-year fixed rate loans. Setting up the loans with the government is very tedious, you have to go through tons of paperwork, and where it would take two months with a private lender it takes a year or more with HUD, Mr. Zlotowitz said. But borrowers are just starting the process earlier. Its pushing the competition even more in that area. Local banks are adapting to the onslaught of regional entrants and government borrowing windows by offering flexibility and accommodating their clients. What we hope to sell as a community lender is that if there are problems and the borrower needs to take out a little more money, we will have a relationship and be able to work that out, whereas another bank less familiar with this market wouldnt, Mr. Harris said. We recently did a loan. It was a low leverage deal and the borrower wanted a couple of million more, and so we put a second loan behind the first and he used the proceeds to buy another property. I think those are the kinds of situations we excel at.
sure the deal is a 6 cap and will lend, say, $1.25 million on that, but youll have another lender and theyll use a 5.5 cap and come to a threshold of $1.430 on it, and a lot of borrowers always want the most money they can get, Mr. Harris said. You kind of just have to let those deals go. If its a deal where I really like this location I might say 'Ill give you $1.3 million.' No area of the market is more competitive than the multifamily sector, where lenders are jostling against not only one another but also the large government repositories of credit, Fannie Mae and Freddie Mac. Both offer loans that stretch 10 years, longer than almost any comparable mortgage that a private lending institution would hand out
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Josh Zegen
by Carl Gaines
The Mortgage Observer: Can you tell me your title here and how long youve been at Madison Realty Capital? Josh Zegen: I co-founded Madison in 2004 with Brian Shatz. My official title is managing member and co-founder. And Madison Realty Capital started out with a first fund in 2004 that focused on the debt business. That was a $310 million fund and that fund was set up to do bridge lendingto lend to commercial owners of multifamily office retail and industrial properties for time-sensitive transactions. The goal was to focus on the middle market, which we thought was underserved. And how did you get your start in the business? I graduated from Brandeis University and then started a mortgage brokerage company in 2001. When we were brokering a lot of these private, short-term bridge loans, I discovered the niche of the bridge lending market. There was a need for a fund focused on first mortgage bridge lending in the sub-$30 million market. When I saw that need, I got together with Brian Shatz and then went to a family office and met a number of investors that really were the first money for us to start in 2004. The goal was always to create a vertically integrated platform, where we would have lending and other things and really ultimately be owners of real estate. We started to build the organization and service our own loans and really did everything in-house as a normal lender. At the time, generally, lenders didnt own much in real estate because either they would get paid off by another lender or the properties were liquid and they would sell. But when 2008 came, that started to change as the markets changed and there was less liquidity out there and lenders werent lending, so we started to take ownership of real estate. One of the things we discovered was that when you rely on third-party managers to manage real estate, there is a misalignment of interests and you dont
necessarily have the ability to take ownership and reposition the real estate, and thats a lot of times where the best benefit is. So in 2009, we brought on Martin Nussbaum to really focus on building our own property management and asset management companySilverstone Property Group. Which helps you get it back up to market rate rents? Thats exactly right. In 2009, there wasnt much in terms of transactions out there, but as 2009 turned into 2010, having our own property management, asset management and construction management gave us the ability to buy debt with the goal of owning the underlying real estate. Because were now this vertically integrated company, that has the lending side and then the ownership side of the business, thats given us the ability to buy debt with the goal of owning this real estate and repositioning it. A lot of those debt funds dont want to own real estate. They want to buy and restructure the deal or flip it back to someone. How are you able to close deals so quickly? Its the combination of skill sets, all within this organization, that gives us that ability to close quickly. We obviously hire appraisers, third-party engineersall the stuff you normally would hire. But in addition we have people on staff who came from the development side, who built buildings like that in the past, who have dealt with contractors and issues and zoning. We outsource just for third-party opinions but we have all of that in our organization and thats given us the speed and the execution ability to be able to do that within a 30-day time frame. Are bridge loans still a big part of finding a way to buy the note on a property? Were seeing in the bridge lending markets, a lot of recapitalization. Bridge lending is an active part of the business. Buying debt has been the largest part. If you look at the $70 million or so in deals weve done, more than $50 million have been note purchases. Josh Zegen Are you growing? I think we have a couple more hires we would like to make. The property management and asset management side continue to grow as we take ownership of more and more real estate, so thats very scalable. Another position we just hired is a guy named Bryan Rubin who came from TriBeCa Associatesa big owner and developer here in New York. Hes like an acquisition underwriter. David Speiserhe was at Davis Polk, Paul Weiss and then he was at Related for about six years. Did you previously have an internal infrastructure for dealing with legal issues? We have someone who has a legal and business background but got a law degree in Israel, so David Speiser is more of that legal function, crossing over between legal and business. I know when we spoke before, you talked about banks increasing willingness to write down their debt. Do you think thats going to continue? It seems to be, and were inundated with product right now in terms of buying debt and I think a lot of it is the increase of values over the last year and the fact that banks have been in a much healthier spot in terms of their own balance sheets. That has given a lot of flexibility to these banks to be able to write down assets and sell loans at prices that are more manageable for buyers like us. From the special servicer sidemore of the LNR and C3 and those kinds of special servicersweve started to see a lot more product from those groups as well.
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REPORT
Aaron Jungreis Robert Knakal Rick Lyon David Schectman Rosewood Realty Group Massey Knakal Realty Servces Capital One Bank Eastern Consolidated Bruce Mosler Doug Steiner Jed Walentas Ralph Bumbaca Cushman & Wakeeld Steiner Studios Two Trees TD Bank
THE
STOLER
The Stoler Report-Real Estate & Business Trends airs on CUNY TV, Channel 75 in NYC:
Tuesday: 2 AM, 11 PM Wednesday: 8:30 AM, 2:30 PM & 10:30 PM Friday: 5:30 AM Saturday night: 12 Midnight Sunday: 10:30 AM
Building New York-New York Life Stories airs on CUNY TV, Channel 75 in NYC:
Monday: 10:30 AM, 4:30 PM & 10:30 PM Wednesday: 5:30 AM Thursday: 11:30 PM Saturday 12 Noon & 12:30 AM Sunday: 6 PM
www.stolerreport.com or www.michaelstoler.com
24|7
Up-to-the-minute news NOW for New Yorks real estate market: In New York, real estate is a spectator sport and an obsession. The Commercial Observer on Observer.com is the daily x for the real estate-obsessed, providing access to the minute-by-minute accounts of the latest deals, the winners and losers, the stats, proles and more.
Sked
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Despite uncertain economic conditions, owners and developers of financially troubled real estate projects are still expected to keep their properties afloat, waning cash flows and weakened property values be damned. Join the Urban Land Institutes Young Leaders Group in a discussion on the state of distressed assets in New York. The Urban Land Institute Young Leaders Group Workouts 3.0 on the state of distressed assets in the New York area; law offices of Clifford Chance, 31 West 52nd Street, 6:30 p.m. to 8:30 p.m. Call 800-321-5011 or visit www.netforum.uli.org for more information.
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And, yes, now the construction trades groups, developers and hard hats will get their day on the greens when the New York Building Congress hosts its own golf outing in Westchester. New York Building Congress golf outing, Westchester Country Club, Rye, NY, 9:30 a.m. to 7:30 p.m. Email Dawn Rubino at Drubino@ buildingcongress.com or visit www.buildingcongress. com for more information.
For the commercial mortgage industry, July will always be a big month for golfing, and CoreNet Global is among the first organizations out of the gate this year to hit the links. In other words, expect sub-par golfing. CoreNet Global 2012 Annual Golf Outing; Old Oaks Country Club and Century Country Club, 3100 Purchase Street, Purchase, NY, 8:30 a.m. to 5:30 p.m. Email Jaclyn Sniger at Jsniger@ bermangrp.com for more information.
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An index of all the people, places, addresses and companies mentioned in this issue
20
10 Hill St . . . . . . . . . . . . . . . 6 10 W 74th St . . . . . . . . . . . . 4 100 Church St. . . . . . . . . . . . 4 15-25 Kenmare St . . . . . . . . 4 164 Elizabeth St . . . . . . . . . . 4 25 Clifton Ave . . . . . . . . . . . 6 31 W 52nd Street . . . . . . . . 31 31-00 47th Avenue . . . . . . 23 3100 Purchase Street . . . . . 31 39-05 29th St . . . . . . . . . . . . 5 40 Worth Street . . . . . . 22, 23 450-460 Park Ave South . . . 4 500 W 30th St . . . . . . . . . . . 5 7 Bryant Park . . . . . . . . . . . . 5
17
Lending . . . . . . . . . . . . . . . . 6 CoreNet Global . . . . . . . . . 31 Corso Jr., Robert . . . . . . . . 18 Country Bank . . . . . . . . 11, 12 Cowen & Co. . . . . . . . . . . . 18 Cowen Group . . . . . . . . . . . 18 Cummings, Kevin . . . . . . . . . 8 Cushman, Philip . . . . . . . . . 18 CWCapital . . . . . . . . . . . . 6, 8 CW Financial Services . . . . . 8
17
05
02
Small Business Administration . . . . . . . . . . Small Business Lending . . . Sniger, Jaclyn . . . . . . . . . . . Solomon, Jeff . . . . . . . . . . . Speiser, David . . . . . . . . . . . Stanford University . . . . . . Starlight Childrens Foundation . . . . . . . . . . . . . Steier, Peter . . . . . . . . . . . . Stein, Joshua . . . . . . . . . . . Sterling National Bank . . . . Stevens, David . . . . . . . . . . Stoffels, Garett . . . . . . . . . . SunTrust Mortgage . . . . . . . 12 12 31 18 28 17 22 18 16 25 18 18 18
H
Harris, Dan . . . . . . . . . . 26, 27 HFF . . . . . . . . . . . . . . . . . . . 5 Hibernia Bank . . . . . . . . . . 22 Hines . . . . . . . . . . . . . . . . . . 5 Holiday Inn Manhattan View . . . . . . . . . . . . . . . . . . . 5 Hollande, Francois . . . . . . . 17 Hooper, Mayura . . . . . . . . . . 8 Housing Finance Agency . . . 5 Howard-Johnson, Mark . . . . . . . . . . . . . . . 10, 18 Hudson Realty Capital . . . . . 4 Hudson Yards . . . . . . . . . . . . 5 Hudson River Yards . . . . . . . 5
D
Davies, Marcia . . . . . . . . . . 18 Davis Polk . . . . . . . . . . . . . 28 Davis, Steve . . . . . . . . . . . . 17 DB Advisors . . . . . . . . . . . . . 8 DebtX . . . . . . . . . . . . . . . . . 10 Delitsky, Robert . . . . . . . . . . 5 Department of Taxation and Finance . . . . . . . . . . . . 16 Deutsche Bank . . . . . . . . . . . 8 Deutsche Insurance Asset Management . . . . . . . . . . . . . 8 Dime Savings Bank . . . . . . . 26 DWS Americas . . . . . . . . . . . 8
A
Ackerman, Shaya . . . . . . . . . 6 Actovia . . . . . . . . . . . . . . . . 14 Aite Group . . . . . . . . . . . . . . 8 Alma Realty . . . . . . . . . . . . . 6 Applebaum, Howard . . 25, 26 Avison Young . . . . . . . . . . . 18
New Democracy . . . . . . . . . 17 New York Building Congress . . . . . . . . . . . . . . 31 New York Business Development Corp. . . . . . . 12 New York Community Bank . . . . . . . . . . . . . . . . 6, 14 Newmark Grubb Knight Frank . . . . . . . . . . . . . .18, 22 Newmark Holdings . . . . . . . 22 NewOak Capital . . . . . . . . . 18 North Fork Bank . . . . . . . . 22 Northern Avenue . . . . . . . . . 5 Nussbaum, Martin . . . . . . . 28
I
Investors Bank . . . . . . . . . 6 ,8 Investors Bancorp . . . . . . . . 8 Iron Hound Management Co. . . . . . . . . . 4
O P
T
TD Bank . . . . . . . . . . . . . 6, 14 The Colonnade . . . . . . . . . . . 6 The Moinian Group . . . . . . . 4 The Mortgage Bankers Association . . . . . . . . . . . . . 18 The United States Department of Housing and Urban Development . . 27 The Wharton School . . . . . 17 Thelander, Garrett . . . . . . . 25 Travertine . . . . . . . . . . . . . . . 4 Trepp . . . . . . . . . . . . . . . . . 10 TriBeCa Associates . . . . . . . 28
B
Baker, Scott . . . . . . . . . . . . 17 Baldwin, Alec . . . . . . . . . . . 20 BankUnited . . . . . . . . . . . . . 12 Bank of England . . . . . . . . . 17 Barry, Christine . . . . . . . . . . 8 Berman, Michael . . . . . . . . . 8 Bethpage Federal Credit Union . . . . . . . . . . . . 12 BGC Real Estate Capital Markets . . . . . . . . . . . . . . . . 18 BlackRock Realty . . . 4, 10, 18 Bloom, Nick . . . . . . . . . . . . 17 Braddish, Keith . . . . . . . . . . 4 Brandeis University . . . . . . 28 Bridgehampton National Bank . . . . . . . . . . . . . . . . . . 26 Brooklyn College . . . . . . . . 12 Brown Harris Stevens . . . . 18 Builders Bank . . . . . . . . . . 11 Building & Land Technology . . . . . . . . . .10, 18
J
Jamestown Properties . . . . 23 Jefferies . . . . . . . . . . . . . . . 18 Joshua Stein PLLC . . . . . . . 16 J.P. Morgan Asset Management . . . . . . . . . . . . 5 J.P. Morgan Chase . . . . . . . . 5
E
East Coast Regional Lending Office . . . . . . . . . . 11 Eastern Union . . . . . . . . . . . 6 Eastern Union Commercial . . . . . . . . . . . . 27 Edelstein, Mark . . . . . . . . . . 5 Eidman, Shannon . . . . . . . . 11 Elk Investors . . . . . . . . . . . . 4 Eyzenberg, David . . . . . . . . 18
K
Ken & Cook . . . . . . . . . . . . . 4 King, Sir Mervyn . . . . . . . . 17 Knollwood Country Club . . . . . . . . . . . . . . . . . . 31
Pacolet Milliken Enterprises, Inc. . . . . . . . . . . 5 Palisades Financial . . . . . . . 11 Parliament of the Hellenes . . . . . . . . . . . . . . 17 Pasok . . . . . . . . . . . . . . . . . 17 Patel, K.C. . . . . . . . . . . . . . . 5 Paul Weiss . . . . . . . . . . . . . 28 Pei Cobb Freed & Partners . . 5 Peoples United . . . . . . . 25, 26 Private Capital Group . . . . 18 Progressive Credit Union . . 12
U
U.S. Census Bureau . . . . . . . 8 United Capital Business Lending . . . . . . . . . . . . . . . 12 University of Chicago . . . . . 17 Urban Land Institute. . . . . 31
F
Fagin, Robert . . . . . . . . . . . 18 Fairbank, Richard . . . . . . . 20 Falchi Building . . . . . . . . . . 23 Familant, Robert . . . . . . . . 12 Fannie Mae . . . . . . . 17, 23, 27 Federal Housing Administration . . . . . . . . . . 18 First Niagra . . . . . . . . . . . . . 26 Fiscal Cliff . . . . . . . . . . . . . . 17 Fisher, Mark . . . . . . . . . . . . . 4 Fitch Ratings . . . . . . . . . . . 10 Fitch Training . . . . . . . . . . . 31 Fitzgerald, Cantor . . . . . . . 18 Freddie Mac . . . . 4, 17, 23, 27
L
LEED Gold . . . . . . . . . . . . . . 5 Lehrman, Michael . . . . . . . 18 Lincoln Center . . . . . . . . . . 23 LNR . . . . . . . . . . . . . . . . . . 28 Lyon, Rick . . . . . . . . . . 20, 23
V
ValueXPress . . . . . . . . . . . . 12 Verrone, Robert . . . . . . . . . . 4 Viking . . . . . . . . . . . . . . . 2, 20 Villanova University . . . . . . 23 Visigoths . . . . . . . . . . . . . 2, 20
M
M&T . . . . . . . . . . . . . . . . . . 14 MacDonald, Brendan . . . . . 18 MacNeill, Mary . . . . . . . . . . 10 Madison Realty Capital . . . . . . . . . . . . . 12, 28 Marathon Banking Corp. . . . 8 Marcal Group . . . . . . . . . . . . 6 Massey Knakal . . . . . . . . . . 25 Mathias, Andrew . . . . . . . . . 4 MBS . . . . . . . . . . . . . . . . . . 17 McCarthy, John . . . . . . . . . . 5 Meridian Capital Group . . . 18 Merkel, Angela . . . . . . . . . . 17 Metropolitan Museum of Art . . . . . . . . . . . . . . . . 23 Millennium Bank . . . . . . . . . 8 Mirante, Arthur . . . . . . . . . 18 Morrison & Foerster . . . . . . 5 Mortgage Bankers Association . . . . . . . . . . . . . 31 Murphy, Jr., Joseph . . . . . . 12
C
C3 . . . . . . . . . . . . . . . . . . . . 28 Capital One Bank . . 20, 22, 23 Carlton Group . . . . . . . . . . 18 CBRE Capital Markets Debt & Equity Finance . . . . 4 Century Country Club . . . . 31 Chance, Clifford . . . . . . . . . 31 Chandan Economics . . . . . . 17 Chandan, Sam . . . . . . . . . . 17 Chandler, Jack . . . . . . . 10, 18 Chevy Chase Bank . . . . . . . 22 CIM Group . . . . . . . . . . . . . 18 CIT Bank . . . . . . . . . . . . . . 12 Clairvue Capital Partners . . 18 CMBS . . . . . 10, 12, 17, 18, 31 Cobb, Henry N. . . . . . . . . . . 5 Commercial Real Estate
G
Gaccione, Jason . . . . . . . . . . 4 Garfield, Spencer . . . . . . . . . 4 Goldman Sachs Asset Management . . . . . . . . . . . . 10 Gramercy Capital . . . . . . . . . 4 Greece . . . . . . . . . . . . . . 2, 17 Greenland, Kingsley . . . . . . 10 Guggenheim Commercial Real Estate Finance . . . . . . . 4 Guggenheim Partners . . . . . . 8 Gural, Jeffrey . . . . . . . . 22, 23
Real Capital Analytics . . . . . 4 Real Estate Capital Markets at Wells Fargo . . . . . . . . . . . . 4 Real Estate Finance Group . . . . . . . . . . . . . . . . . . 5 Real Estate Securities Management . . . . . . . . . . . . 10 REIT . . . . . . . . . . . . . . . . 4, 10 Related Co. . . . . . . . . . . . 4, 28 Rose, Joanna . . . . . . . . . . . . 5 Rosenberg, Robert . . . . . . . . 4 RREEF . . . . . . . . . . . . . . . . . 8 Rubin, Bryan . . . . . . . . . . . 28 Rubino, Dawn . . . . . . . . . . 31
W
Wachovia Bank . . . . . 4, 20, 22 Walker, Willy . . . . . . . . . . . . 6 Wells Fargo . . . . . . . . . . . 4, 20 Walker & Dunlop . . . . . . . 6, 8 Webster Bank . . . . . . . . . . . 26 Wells Fargo Multifamiy Capital . . . . . . . . . . . . . . . . . 5 Westchester Country Club . 31 Wiener, Alan . . . . . . . . . . . . . 5 Williams, Keenan . . . . . . . . . 4 Wilshire Investments Corp . . . 6
Santacroce, Kevin . . . . . 25, 26 Sapir Organization . . . . . . . . 4 SBA 504 Loan Program . . . 12 Sharma, Akash . . . . . . . . . . 18 Signet Bank . . . . . . . . . . . . 20 Silverstone Property Group . . . . . . . . . . . . . . . . . 28 Shatz, Brian . . . . . . . . . . . . 28 SL Green Realty Corp. . . . . . 4
Z
Zahabian, David . . . . . . . . . . 4 Zegen, Josh . . . . . . . . . . . . . 28 Zlotowitz, Ira . . . . . . . . . . . 27 Zurlini, Mark . . . . . . . . . . . 11
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