MARCH 2013 | $10

CMBS ISSUE ON WAY FOR 1515 BROADWAY

DAVID TWARDOCK’S POST-PMCC GAME PLAN

JOSHUA STEIN GIVES AN UPDATE FROM THE TRENCHES

TMO.0313.CS3.COVER.indd 1 2/28/13 6:01:17 PM

Untitled-3 1 2/26/13 1:12:10 PM

321 West 44th Street, New York, NY 10036212.755.2400

Carl GainesEditor

Jotham SederstromEditorial Director

Alessia PiroloSta� Writer

Sam ChandanJoshua Stein

ColumnistsMichael Stoler

ContributorNoam S. Cohen

Copy Editor

Barbara Ginsburg Shapiro Associate Publisher

Ed JohnsonProduction and Creative Director

Peter LettrePhoto Editor

Christie WrightDesigner

Lisa MedchillAdvertising Production

OBSERVER MEDIA GROUPJared Kushner

PublisherJoseph Meyer

CEOMichael Albanese

PresidentKen Kurson

Editorial DirectorRobyn Reiss

Vice President of SalesMichael Woodsmall

Director of Development, Real Estate TitlesZarah Burstein

Marketing ManagerMark Pomerantz

ControllerTracy Roberts

Accounts Payable ManagerIan McCormick

Accounts Receivable

For real estate advertising, contact Robyn Reiss at rreiss@observer.com, or call 212-407-9382.

For fi nancial advertising, contact Barbara Ginsburg Shapiro at bshapiro@observer.com,

or call 212-407-9383.

To subscribe to Mortgage Observer Weekly, The Mortgage Observer’s companion PDF

delivered directly to your inbox every Thursday, sign up at commercialobserver.com/mortgage-observer-weekly-signup

March 2013 / Contents

Editor’s Le� er 02

News Exchange 04Mortgage originations, note sales, investments and industry researchu CMBS Issue on Way for $900 Million 1515 Broadway Loanu 1515 Broadway: From Sinatra to MTVu The Largest Loans of the Month

In-Depth Look 08Are These Streets Paved With Gold?By Michael Stoler

Scheme of Things 10Monthly charts of commercial real estatefi nancings in the boroughs

Stein’s Law 12Update From the TrenchesBy Joshua Stein

The Basis Point 14Currency Wars and Commercial Property MarketsBy Sam Chandan

Work Force 16Hirings, promotions, defections and appointments

The 50 Most Important People in Commercial Real Estate Finance 18

Q&A 38David Twardock from Prudential Mortgage Capital Companyby Alessia Pirolo

The Sked 40Our picks for the month’s must-attend events

Cover Illustration by John Tomac

38

06

1

18-37

TMO.0313.ContentsCS3.indd 1 2/28/13 6:11:23 PM

2

Editor’s Letter / March 2013

The bulk of this, our March 2013 issue, is taken up by The Mortgage Observer’s inaugural list of the 50 Most Important People in Commercial Real Estate Finance. It’s hard to believe that we’ve almost reached our one-year anniversary, which comes with the April 2013 issue.

By the way, I’m sure that feedback will be forthcoming. You can reach me at via email at cgaines@observer.com.

We worked on the list for months, talking to everyone we could think of. It was a huge undertaking, but I’m pleased with the results.

It was also, frankly, important work for all of us who did the reporting. Damian Ghigliotty, Alessia Pirolo and myself all got the chance to reconnect with some of the most, ahem, important people in the industry and hear what they’ve been up to.

For the Q&A this month, Alessia Pirolo

interviewed David Twardock, who is set to retire later this month from his position as president of Prudential Mortgage Capital Company after over 30 years with Prudential. The two met at the recent Mortgage Bankers Association conference in San Diego; it was fitting, and perfect timing for us, that we were able to include him in such a big issue for us. We wish him all the best.

Also this month, Joshua Stein has a roundup of recent topics that arose when he chaired a Practising Law Institute seminar on legal and structural issues that often come up in commercial real estate financings.

Top 50 List

TMO.0313.EditorsLetterCS3.indd 2 2/28/13 6:31:53 PM

Untitled-49 1 1/28/13 3:54:18 PM

4

SpotlightNews Exchange / March 2013

Got a news tip? Email Alessia Pirolo at apirolo@observer.com or call (212) 407-9308.

CMBS issue on Way for $900 Million 1515 Broadway loan

» Deutsche Bank, Goldman Sachs and Bank of China have provided a $900 million loan to refi-nance SL Green Realty’s 1515 Broadway, home to Viacom, which renewed its lease there last year.

The group of lenders is securitizing the loan—BWAY 2013-1515—and selling it beginning in mid-April 2013. The CMBS issue has been assigned preliminary ratings by Standard & Poor’s and Morningstar.

Deutsche Bank and Goldman Sachs are co-lead managers. Guggenheim Securities is acting as co-manager.

The new $900 million loan refinanced an existing $775 million loan provided by Bank of China in May 2012. SL Green will take over $116 million in net pro-ceeds from the transaction, the company said.

The new loan has a 3.93 percent fixed rate and will mature in 12 years; the previous loan had a sev-en-year term. The borrower was able to obtain more favorable terms thanks to Viacom’s 1.6-million-square-foot renewal and expansion. In April 2012, the media giant closed on the renewal after months of speculation and became the sole office tenant in the building. The 15-year deal helped SL Green to reposition the retail space, which currently has Viacom’s MTV studio and Aeropostale among its tenants.

“Our ability to execute long-term fixed rate fi-nancing at historically low rates is a significant achievement and reflects both this property’s strength as well as the continuing positive evolution of Times Square,” said Andrew Mathias, president of SL Green. “The long-term renewal of the Viacom lease, coupled with our redevelopment of the build-ing’s lobby, common areas [and] retail space, and the introduction of LED signage, has created significant value.”

Skadden, Arps, Slate, Meagher & Flom served as counsel to SL Green, while the group of lenders was represented by Sidley Austin.

1515 Broadway

TMO.0313.NewsExchangeCS3.indd 4 2/28/13 6:03:57 PM

� ���� Wells Fargo Bank, N.A. All rights reserved. Investment products and services are offered through Wells Fargo Securities. Wells Fargo Securities is the trade name for the capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Securities, LLC, a member of FINRA, NYSE, NFA and SIPC, Wells Fargo Institutional Securities, LLC, a member of FINRA and SIPC, Wells Fargo Prime Services, LLC, a member of FINRA, NFA and SIPC and Wells Fargo Bank, N.A. MC-����

Learn more. wellsfargo.com/realestate

We offer flexible, unparalleled access to capital, liquidity, and investment opportunities through the largest, most comprehensive commercial real estate lending service platform in the U.S.

Let us deliver the best lending solution for you

���,���,���Portfolio execution

Office

New York, NY

���,���,���Freddie Mac

Affordable multifamily

New York, NY

���,���,���Fannie Mae

Multifamily

New York, NY

���,���,���Fannie Mae

Cooperative

New York, NY

Untitled-34 1 2/27/13 12:55:29 PM

UpS & DownSnews Exchange / March2013

6

From the vault

New home SalesThe Commerce Department

announced that U.S. new home sales rose nearly 16 percent to 437,000 in January 2013.

The percentage increase was the largest in nearly 20 years.

According to Bloomberg, builders are finding more and more lenders

eager to finance the housing growth.

miami A group of lenders led by Regions

Financial has agreed to provide the first loan over $100 million

since 2008 for the construction of a condo in the Miami area, The Wall Street Journal reported. The $160 million construction loan will

finance Mansions at Acqualina, a 47-story tower in Sunny Isles

Beach.

Wells FargoWith $429.1 billion in U.S.

master and primary servicing as of December 31, 2012, Wells

Fargo remains at the top of the commercial and multifamily mortgage servicers ranking

released by the Mortgage Bankers Association at the MBA’s CREF/

Multifamily Housing Convention & Expo in San Diego.

Five-Year office loansBorrowers who financed office

buildings at the peak of the market in 2007 are still deep underwater,

according CoStar Group. Many such office properties have

outstanding loan balances greater than their current appraised value.

CmBS BondholdersDistressed debt on properties

is being resolved at a faster pace. And, as The Wall Street

Journal reported in late January 2013, it’s causing some investors

to experience losses on the commercial mortgage-backed

securities they’re holding.

The Hotel Astor (above); 1515 Broadway (right)

From Sinatra to MTV1905-1968Before 1515 Broadway, there was the Hotel As-tor. Built at the beginning of the century for a re-ported total cost of $7 million, the hotel hosted Frank Sinatra’s first New York appearances with Tommy Dorsey’s band in the 1940s. In 1966, a $5 million loan made by Sheraton Astor Corpora-tion was assigned to Bankers Trust Company. The Astor Hotel was closed in 1967 and demol-ished the following year.

1970s Construction of the new building began in 1968 and was completed in 1972. New York Bank for Savings provided a $55 million loan to facilitate it. The new construction at 1515 Broadway was initially known as the W.T. Grant Building, as it served as the headquarters of W.T. Grant retail-ers, which went bankrupt in 1976. However, the William T. Grant Foundation exists to this day.

1980sIn 1984, Tishman Speyer Properties—which Robert Tishman and Jerry Speyer had founded just six years earlier—and Equitable Life bought the building for $189.5 million with a $122.4

million loan from Manufacturers Hanover Trust Company. In 1992 the bank was purchased by Chemical Bank, which later merged first with Chase Manhattan Bank and then with JP Mor-gan to form JPMorgan Chase.

1990s After Equitable Life put the partnership that owned the building into bankruptcy, a series of lawsuits followed. In 1991, Manufacturers Hanover and the partners settled out of court and Equitable took the building out of bankruptcy, The New York Times re-ported. In the meantime, Viacom had become the largest tenant of the building.

2002-2013In 2002, a joint venture between SL Green and Sitq Immobilier purchased the building for $483 million with a $335 million mortgage from Lehman Brothers. In 2009, Bank of China re-financed the building with a $475 million loan. In 2012, Bank of China provided a $775 million loan on the building, which was refinanced just a few months later with a $900 million loan provided by Deutsche Bank, Goldman Sachs and Bank of China.

TMO.0313.NewsExchangeCS3.indd 6 2/28/13 6:05:23 PM

7

March2013 / News Exchange

7

The Largest Loans of the Month

© 2013 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.

CIT Bank makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.

ACQUISITION AND CONSTRUCTION FINANCING: OFFICE • RETAIL • INDUSTRIAL • MULTI-FAMILY

PropertunisticTM

[pro-per-too-nis-tic]

Defi nition: Growth opportunities afforded property owners

by customized fi nancing from CIT.

CIT Real Estate Finance combines deep industry relationships,

underwriting experience and market expertise to help real estate

organizations grow. We originate and underwrite senior secured

real estate transactions, emphasizing moderate leverage, a visible

repayment strategy and market competitive terms and pricing.

Visit cit.com/realestatefi nance Matt Galligan, EVP/Group Head, 212-461-7740

Every Friday, our weekly newsletter Mortgage Observer Weekly brings stories to your e-mail inboxes about the most interesting deals across the country. Here are some of the largest deals we covered in February 2013.

IN NEW YORK$900 MILLION1515 BroadwayBORROWER: SL GreenLENDERS: Deutsche Bank, Goldman Sachs and Bank of ChinaThe deal refinanced an existing $775 million loan provided by Bank of China in May 2012. SL Green will take over $116 million in net proceeds from the transaction. The group of lenders is planning to sell the mortgage as securities.

$450 MILLIONHudson Yards, Tower CBORROWER: The Related CompaniesLENDER: Starwood Property Trust

$390 MILLIONRetail condo at 666 Fifth AvenueBORROWER: Vornado Realty TrustLENDERS: Citigroup and RBS

$165 MILLIONHunter’s Point South development in Long Island CityBORROWERS: The Related Companies, Phipps Houses and Monadnock

ConstructionLENDERS: Wells Fargo and Bank of America

$141 MILLIONPortfolio of eight multifamily buildings in Manhattan and QueensBORROWER: BlackRockLENDER: Capital One Bank

ACROSS THE COUNTRY$95 MILLION64 New York Avenue NE, Washington, D.C.BORROWER: Brookfield Real Estate Opportunity Fund ILENDER: Mesa West Capital

$85 MILLIONStudent housing portfolio in East Lansing, Mich.BORROWERS: Woodlark Cos. and Westpac Campus CommunitiesLENDER: JPMorgan Chase

$72 MILLION1333 Hudson Street, Hoboken, N.J.BORROWER: Ironstate Development LENDER: State Farm Insurance

$65 MILLION7940 Jones Branch Drive, Tysons Corner, Va.BORROWERS: MRP Realty and Rockpoint Group.LENDERS: EagleBank and Burke & Herbert Bank

Hudson Yards

TMO.0313.NewsExchangeCS3.indd 7 2/28/13 6:06:03 PM

8

In-Depth Look / March 2013 A comprehensive take on CRE finance trends

by Michael Stoler

The clash of the banking titans has begun. In the same vein as professional athletics, fi nancial institutions planning to enter the

streets of New York (which many may indeed believe are paved with gold) seek to hire experienced, well established Hall of Famers. For example, it looks like BankUnited truly wants to make its presence felt in real estate fi nance with the hiring of Sam Giarrusso.

“We’re about to put out a press release, I guess in the next couple of days,” John Kanas, the chairman, president and CEO of the bank, said in a recent earnings call with analysts. “The biggest hire or the most prominent hire that we’ve made is a gentleman who will head up our real estate lending activities in New York. His name is Sam Giarrusso. He was 20 years running the real estate lending division in New York for M&T Bank. He was our biggest competitor in North Fork, so now he’s—we’ve got a new badge on Sam. We’re going to make that announcement formally sometime in the next few days.”

BankUnited is getting its bullpen sta� ed with other experienced real estate lenders with last year’s hirings of Paul Breuer and Paul Leprohon, who both worked at North Fork.

With the loss of lenders like Lehman Brothers and Bear Stearns, other lenders entered and re-entered the market, including Signature Bank, which began operations on May 1, 2001. The bank has grown its assets to nearly $17 billion and become one of the pre-eminent real estate lenders. In November 2007, George Klettt joined the bank as a group director, executive vice president and chairman of its newly created commercial real estate committee. He was previously with M&T Bank, where he organized the bank’s entry into commercial real estate lending and served as SVP and manager of commercial real estate lending.

Also, in August 2007, Wachovia Corporation veteran Michael Slocum joined Capital One as an executive vice president of commercial banking. In this capacity, he led broad lines of businesses. In September 2011, he was promoted to president of commercial banking.

In the bull years of 2006, Sovereign Bancorp acquired Brooklyn-based Independence Community Bank Corporation, another very active real estate lender. The fi nancing of this transaction was enabled

thorough the selling of a 20 percent stake to Grupo Santander, which acquired the balance of the bank in January 2009. Sovereign/Santander will be known as Santander U.S. by the end of 2013.

In February 2011, Astoria Financial Corporation announced it had hired the multifamily/commercial real estate lending team formerly with Sovereign Bank and its predecessor Independence Community Bank.

In March 2008, TD Bank Group completed the purchase of Commerce Bank. The transaction doubled TD Bank’s presence in the United State and made it North America’s seventh-largest bank. Over the past fi ve years, the bank has beefed up its presence in the commercial real estate market, especially with the hiring of Roy Chin in June 2010 as regional director, commercial real Estate for New York and Northern New Jersey.

Bridgeport, Conn.-based People’s United Financial Inc. entered the Long Island and New York City market with the purchase Smithtown Bancorp, the parent of another very active real estate lender, the Bank of Smithtown. In July 2012, People’s United announced the hiring of John Costa as executive vice president, a move that expanded the bank’s commercial real estate lending activities in the greater New York metro market.

Mr. Costa joined Peoples United from Sovereign Bank/Banco Santander. Most recently he headed Santander Real Estate Capital, where he led both new loan origination and the management of a $21 billion portfolio of real estate loans, the majority of which were secured by multifamily properties.

With the loss of many of the Irish banks, established bankers joined new lenders entering the commercial real estate market. In November 2011, CIT Group announced the launch of CIT Real Estate Finance. Matthew Galligan joined to serve as executive vice president and group head. Prior to joining CIT, he served as managing director and head of U.S. property fi nance for Bank of Ireland, where he closed more than $2 billion in loans.

Joining Mr. Galligan at CIT were Meggan Walsh, as

a managing director, and Christopher Niederpruem, as a director. Both had worked with him at Bank of Ireland.

JPMorgan Chase is also very active in providing fi nancing in its commercial term lending. In August 2011, Jason Pendergist moved to New York City to manage commercial term lending for the East Coast. Previously he served as SVP-senior manager and regional sales manager for commercial term lending throughout California. He joined JPMorgan when it acquired WAMU in October 2008.

First Republic Bank, a leading private bank and wealth management fi rm has beefed up its New York City real estate lending. In December 2011, the bank announced the hiring of Garrett Sokolo� as managing director.

Prior to joining First Republic, Mr. Sokolo� worked for UBS in New York, where he was managing director and co-head of conduit origination in the real estate fi nance group.

A number of other seasoned real estate lenders have changed positions over the past year.

In the summer of 2012, Sophia Haliotis joined as senior vice president for Popular Community Bank to lead the commercial banking and real estate team’s expansion in the retail, industrial, multifamily and nonprofi t

refi nancing sectors. Previously, she was responsible for structuring and approving JPMorgan’s commercial real estate loans in the New York, New Jersey, Washington, D.C., Boston and Pennsylvania markets.

Also last year, Gregory Fierce joined U.S. Bank as senior vice president. He previously served as EVP and head of real estate for Amalgamated Bank. His prior experience included positions at WAMU, BNY Mellon and JPMorgan Chase.

The bullpen of seasoned bankers has orders from senior management to pursue fi nancing for experienced, well-established and well-capitalized borrowers. With these and other banks searching the market for business, one thing is certain—borrowers will have many more options for fi nancing in 2013.

Are These Streets Paved With Gold?

TMO.0313.CS3.InDepthLook.indd 8 2/28/13 6:02:01 PM

Delivering on the Assignment

A Selected few of our closings

Permanent FinancingFor Storage Facility

Brooklyn, NY

$12,500,000 2 Self Storage Facilities

Houston TX & Chicago, IL

$20,000,000

Permanent Financing For Retail& Residential Condos

New York, NY

$20,500,000Permanent Financing

For Self Storage Facility Boston, MA & Washington DC

$18,750,000

Acquisition FinancingFor Shopping Mall

Dallas, TX

$17,600,000

We pride ourselves on taking the time to properly understandthe needs and goals of our clients!

Experience and expertise allow us to overcome the complexities of CRE finance.

127 West 24th Street, 2nd Floor, NY 10011(212) 254 1600 • www.hkscapitalpartners.com

TCAPITAL PARTNERS LLC.H

K

S

• Debt • Equity • Mezzanine• Construct ion • Bridge • Private • Joint Ventures

Untitled-3 1 2/26/13 1:16:53 PM

14TH ST

10

Scheme of Things / March 2013 Monthly charts of commercial real estate financings across New York City

What a difference a month makes. Actovia’s snapshot of financing data, which includes loans recorded as The Mortgage Observer was going to press, shows a dramatic drop-off in activity as the new year kicked off. Sales volume in every borough but the Bronx fell off a cliff, dropping overall from 629 in December to just 195 in January. A swath of Prospect Heights and Clinton Hill in Brooklyn ruled the most active ZIP codes.

Mortgage Charts

572

346 318

76

DEC JAN

REFINANCES DEC JAN

PURCHASES

Refinances vs. Purchases

Top 10 Lenders

Total Sales by Borough

DEC JANALL

DEC JANMAN.

DEC JANBRONX

DEC JANBROOK.

DEC JANQUEENS

BANK DECEMBER 2012 BANK JANUARY 2013

629

207

66

252

104195

25 50 79 41

Most Active ZIP Codes—Financing

New York Community Bank 69 Signature Bank 46

Signature Bank 61 New York Community Bank 42

JPMorgan Chase 57 JPMorgan Chase 32

Capital One 51 Capital One 18

Investors Bank 29 TD Bank 17

Dime Savings Bank of Williamsburgh 27 Astoria Federal Savings Bank 13

Astoria Federal Savings Bank 25 Flushing Savings Bank 12

Flushing Savings Bank 23 People’s United Bank 11

NCB 17 Ridgewood Savings Bank 11

Sovereign Bank 17 Sovereign Bank 8

ZIP CODE DEC 2012 ZIP CODE JAN 2013

11221 27 A 11238 23

11215 23 B 10023 15

11237 21 C 11226 11

10011 18 D 11206 11

11211 17 E 11237 10

10013 17 F 11221 10

10452 17 G 11211 10

11226 17

Data courtesy of

What a difference a month makes. Both purchases and refinances fell from December 2012 to January 2013.

The Brooklyn neighborhoods of Prospect Heights, Clinton Hill and Prospect Park South kept Brooklyn as the hotbed of financing for January 2013. Out of seven ZIP codes on the list, in fact, six were in Brooklyn.

Compared with the previous month, sales were slow during January 2013. In actuality, however, the volume of sales returned to pre-December 2012 levels.

Keep Truckin’: January 2013’s totals for the borough of Brooklyn include a $9.8 million loan to fund the $14.5 million purchase of a truck terminal at 1313 Grand Street in Williamsburg. Investors Bank provided the loan.

Transactions like the $12 million first mortgage it provided for the acquisition of 730 Riverside Drive in Manhattan, which Area Property Partners sold during January 2013, placed Signature Bank at the top of banks that provided financing during the month.

F

B

C

G

A

D

E

TMO.0313.CS3.SchemeOfThings.indd 10 2/28/13 6:08:36 PM

Community lending expertise with a personal touch.

$68 million in recent closings

Flushing Bank is a registered trademark

At Flushing Bank we’re focused on exceeding your goals. Comprised of experienced lenders with local market knowledge, Flushing Bank’s Real Estate Lending team is ready to help you with your commercial real estate mortgage solution. As a well-established community lender, we’ve enhanced our lending to provide competitive rates including long term fixed rate loan programs. Call us today and let us make your real estate dream a reality.

Including:• $38 million – 3 multi-family dwellings in Suffolk County, NY • $8.6 million – retail space in Jamaica, NY• $4.3 million – underlying residential co-op mortgage in Jackson Heights, NY

Bronx, NY48-Unit Multifamily

$4,000,000

Brooklyn, NY36-Unit Multifamily

$2,000,000

New York, NY52-Unit Multifamily

$6,500,000

Brooklyn, NY36-Unit Multifamily

$2,100,000

CLOSED

CLOSED

CLOSED

CLOSED

144-51 Northern Boulevard, Flushing, NY 11354 • www.FlushingBank.com

Edward Alarcon 718.512.2783Al Bozzolo 718.512.2784Denis Mangan 718.512.2790

Ivan Nunez 718.512.2908John O’Connor 718.512.2826Terrence Winter 718.512.2819

Untitled-17 1 2/26/13 4:35:09 PM

12

The M.O. Columnists / March 2013

Stein’s Law

Joshua Stein

Update From the Trenches

In mid-February, I chaired a two-day Practising Law Institute seminar on legal and structural issues and developments in

commercial real estate financing. We heard from a dozen active participants in the market, primarily lawyers, describing what they’re seeing and what they expect to see going forward. Perhaps each speaker reflected only what had crossed his own desk—each just touched his own piece of the elephant—but the comments collectively gave useful insights and predictions. And some points came up again and again.

For strong assets in the top half-dozen U.S. cities, the commercial real estate credit markets are as kind to borrowers as they’ve ever been. That’s true at least for borrowers who want conservative first mortgages—particularly if they are willing to put up with the burdens and agonies of securitized financing. That category of lending in particular has taken off again, from a dismal financial-crisis base of about zero in 2009 to a projected volume in the range of $100 billion-plus for 2013—still far below the 2007 peak, but certainly respectable and heading upward, and very attractively priced.

Mezzanine financing? Not so much. Potential mezzanine lenders still worry about some of the adverse decisions issued in Stuyvesant Town and other “tranche warfare” cases. In that case, mezzanine lenders faced the burden of paying off mortgage lenders if the mezzanine lenders

wanted to be able to foreclose on their equity collateral.

In my own opinion, strongly held, those decisions were wrong and misinterpreted the governing intercreditor agreements. The decisions did, however, drive home the fact that mezzanine financing is structurally subordinate, and ultimately mezzanine lenders do face the risks of being subordinate. Mezzanine lenders

often forget about that little detail, because they never, ever expect they might need to pay off the underlying mortgage loan under any circumstance.

For the mezzanine loans that do get made, one should expect to see higher pricing and new and improved intercreditor agreements to “clarify” the language that caused the problems I’ve just described. And whenever a single lender originates mortgage and

mezzanine loans simultaneously, it’s particularly reasonable to expect to see such clarification.

One can only imagine what further “clarifications” will turn out to be necessary after the next downturn.

The General Growth bankruptcy has, not surprisingly, focused more attention on independent directors (or members, for LLC borrowers). Once seen only in securitized loans of $20 million and above, that feature will appear more often even in smaller loans, whether or not they are destined for securitization. Borrowers should also expect to encounter higher and very

specific standards for independent directors, as well as more difficulty replacing them.

Terrorism insurance remains a potential issue, recognizing that federal legislation expires periodically. Loan documents may provide, for example, that if the federal backstop goes away, then the borrower must spend on terrorism insurance an amount equal to 200 percent of all the other insurance premiums the borrower is already paying for other coverage. That could get expensive.

Another disaster, Hurricane Sandy, could trigger additional tightening of insurance provisions. There, instead of requiring flood coverage for property in the “100-year” floodplain, one should perhaps expect to see those requirements apply in the “500-year” floodplain, a major expansion. It’s also another reason to expect real estate advocates to push for the continuation of federal flood insurance along with the federal backstop for terrorism insurance.

As part of the general trend toward conservatism, borrowers should expect higher requirements for delivery of estoppel certificates, expressed as a percentage of leased space or rent roll. A few brave lenders use estoppel certificates to deliver the same lender protections as a nondisturbance and attornment agreement, in a simpler and shorter way. That’s hardly a trend. But it’s a reasonable and practical way to mitigate some spurious issues that arise in these agreements.

Borrowers are making headway in persuading lenders to rely more on the borrower’s due diligence reports and vendors. A lender will insist on having a direct relationship with whoever prepared any reports, and will expect to be an addressee of the report, or at least get a reliance letter. Lenders may face regulatory constraints in this area.

If borrowers, or even property sellers, want to benefit from the savings and speed (and elimination of surprises) that can result from shared due diligence, they need to choose their due diligence vendors carefully—stick to the “usual suspects”—and have agreements with them that prevent unexpected bills.

Ground leases remain popular for many borrowers and lenders. Although any ground lease should contain certain “magic language,” what happens if it doesn’t? When I asked for a show of hands, no one in the audience had ever encountered a ground lease that was entirely unfinanceable and unsalable because of something it did or didn’t say. At worst, the leasehold financing just cost a bit more.

Joshua Stein is the sole principal of Joshua Stein PLLC. The views expressed here are his own. He can be reached at joshua@joshuastein.com

TMO.0313.CS3.Columnists.indd 12 2/28/13 6:00:09 PM

v

Selected Among the“50 Most Important People

in Commercial Real Estate Finance”

Unique to the marketplace, our real estate capabilities seamlessly integrate:

CCRE's

BGC's

Newmark Grubb Knight Frank's

Howard Lutnick Anthony Orso Michael Lehrman

Untitled-57 1 2/28/13 1:07:28 PM

14

The M.O. Columnists / March 2013

The Basis Point

Sam Chandan

Currency Wars and Commercial Property Markets

W hen central bankers plan for a mid-February meeting and agree that Moscow is a fitting venue, it’s unlikely

that re-creation will dominate the agenda. Russia currently heads up the Group of 20, so the location of the most recent global meeting of finance ministers and monetary policymakers was assured. Whether they would achieve a consensus on how to avert a potential currency war was not. Recessions on two continents and self-inflicted damage to growth prospects in the United States coincide with the exhaustion of conventional policy responses; the idea of an easy fix in the arena of exchange rate manipulation is understandably tempting.

By undercutting its own currency, a country makes its exports more competitive while driving up the price of imports. Domestic industries not dependent on foreign inputs benefit from both shifts. On the downside, consumers will see their overall purchasing power decline, at least until the boost to the economy translates into higher wages. A small country might be forgiven such a reaching attempt at growth. But the stakes are higher when large nations with significant trade relationships follow a similar path. Gains

accruing from devaluation come at a cost to the trading partner and so elicit a response.

At least in the genteel company of advanced nations, competitive devaluations have been rare in the post-Bretton Woods era that has followed the Nixon Shock. Among large economies, accusations

are most often leveled against China, which has been under pressure from the United States to allow the yuan to appreciate. China’s mammoth trade surplus, which jumped from $154 billion in 2011 to $231 billion last year, evinces the ineffectiveness of U.S. policy on that front.

With support from both Democrats and Republicans, the Senate passed a bill in late 2011 that would levy sanctions against countries deemed currency

manipulators. Although the bill was broadly applicable in its language, it was aimed principally at China in practice. No concrete steps have been taken against China, however, since the Treasury Department opted late last year against a finding of direct manipulation. In November 2012, in its semiannual Report to Congress on International Economic and Exchange Rate Policies, the Treasury offered a favorable assessment of “actions taken by China to appreciate its currency and move to a more market determined exchange rate.”

The Treasury’s assessment reflects its own analysis but also captures the political calculus of the administration. We should be pragmatic in heaping scorn upon China, in part because it may be counterproductive, and also because it may invite further scrutiny of U.S. monetary policy. China’s currency is undervalued, to be sure. But the malefactors in the current scenario include the free-market economies. The United States in particular is a suspect among countries that have seen their currencies rise in value against the dollar.

As the Federal Reserve has pursued its program of quantitative easing, elevated flows of capital to emerging economies have lifted their positions relative to the greenback. With the Brazilian real moving relentlessly higher against the dollar, Brazil’s finance minister in September 2010 concluded that “the advanced countries are seeking to devalue their currencies ... we’re in the midst of an international currency war.” That claim followed almost a year after Goldman Sachs named the real the world’s “most overvalued currency.” Concerns petered out over the following year.

The issue of devaluation has come to the fore again, owing in part to recession in Europe and a changing of the guard in Japan. The rumored heir presumptive to the leadership of the Bank of Japan, Haruhiko Kuroda, serves currently as the president of the Asian Development Bank. As vice minister for international affairs at the Ministry of Finance from 1999 until 2003, he favored aggressive interventions to weaken the yen and bolster the competitiveness of Japanese exports. Newly elected Prime Minister Shinzo Abe has promised to combat deflation and reinvigorate Japanese exports through rapid expansion of the money supply.

While quantitative easing in the United States has weakened the dollar, this is a secondary effect rather than an explicit policy goal. Domestic policymakers could work to devalue the dollar as an explicit policy objective, but they would almost certainly elicit a competitive response from other countries or trading blocs. The simulative impact of widespread easing might help to generate a healthy bout of inflation, but the unpredictability of exchange rates would be detrimental to trade. For the time being, the Federal Reserve is not about to tighten monetary policy. Maintaining some détente in the currency market will keep monetary policy easy around the world.

Sam Chandan, Ph.D., 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.

TMO.0313.CS3.Columnists.indd 14 2/28/13 6:00:27 PM

Untitled-28 1 2/27/13 12:01:54 PM

Marcus & Millichap Capital Corporation has brought in Keith Bauer as the director of the firm’s Washing-ton, D.C., operations. Mr. Bauer will work with the firm’s national hospitality group in ar-ranging debt and equity

financing for hotels and golf resorts.“Keith brings more than 15 years of expe-

rience to MMCC,” said William Hughes, the senior vice president and managing director of MMCC. “His proven ability to develop new business will be a valued asset, and his deep fa-miliarity with mortgage banking, particularly in the hospitality industry, where he has originat-ed more than $450 million in loans, will raise MMCC’s D.C. and Maryland client service to an even higher level.”

Mr. Bauer has extensive experience in com-mercial real estate, having spent more than nine years in the hospitality industry divi-sion of Capmark Finance. He participated in more than $1.5 billion in closed loans and ana-lyzed over $4 billion in hospitality transactions throughout the United States.

Goodwin Procter has named Paul Lyons a partner in the firm’s London office. Mr. Lyons had previously served as a partner in Travers Smith’s banking practice since 2003.

“Paul brings significant expertise in all as-pects of real estate debt finance to our growing London team,” said David Evans, chair of the firm’s London office. “As real estate debt mar-kets continue to evolve in Europe, particularly with the expansion of the nonbank lending sec-tor, new opportunities are emerging. Paul will further strengthen Goodwin’s ability to serve its clients as they capitalize on these market shifts.”

Mr. Lyons will focus on real estate debt fi-nance. His experience in advising both lenders and borrowers as well as in leveraged finance will support Goodwin’s expansion.

Greystone, a provider of multifamily and health care mortgage loans, has added Dale Holzer to the multifamily housing group. Mr. Holzer will work out of the firm’s soon-to-be-opened Newport Beach office.

“Dale’s market expertise and relationships within the industry will be a valuable resource to Greystone as we expand our West Coast op-erations,” said Rick Wolf, senior managing

director of Grey-stone’s West Coast production. “We be-lieve that the addition of new personnel such as Dale will be crucial as we continue to ex-pand through the re-gion and look to better serve our growing cus-tomer base.”

Mr. Holzer previously served as a vice presi-dent at George Smith Partners. He holds a B.S. in economics from the Wharton School of Busi-ness at the University of Pennsylvania.

DLA Piper has add-ed Joseph Philip Forte to the firm’s real estate practice as a partner in New York.

“Joe is one of the leading CMBS lawyers in the country and will be a significant addi-tion to our already strong national real estate finance practice at DLA Piper,” said Roger Melt-zer, U.S. co-chair of the firm and global chair of its corporate and finance practice. “Joe’s coun-sel is highly sought after throughout the indus-try, and we are confident that our clients will benefit from his depth of experience in this in-creasingly complex sector of the market.”

“His deep market knowledge and experience make him well positioned to provide top-tier counsel to our clients, and his addition will en-hance our robust real estate platform in New York and around the world, and also build upon our significant global finance presence,” added Jay Epstien, the co-chair of DLA Piper’s global real estate practice and chair of the firm’s U.S. real estate practice.

Prior to joining the firm, Mr. Forte worked as a partner in the global finance and debt products group at Alston + Bird LLP. He is currently the governor and past president of the Commer-cial Real Estate Finance Council as well.

Susanne Mulligan will join Guggenheim Se-curities as a managing director in the equity capi-tal markets division. She will be based in New York and report to Mark Van Lith, the senior managing director and head of investment banking. Her re-sponsibilities will include building an equity capital markets practice with a focus on health care.

“Susanne brings significant experience in equity capital markets, and we are pleased

to welcome her to Guggenheim,” said Alan Schwartz, the executive chairman of Guggen-heim Partners. “We value her experience in partnering with industry bankers and originat-ing new equity business and look forward to the value she will bring to our growing franchise.”

Ms. Mulligan has served as the head of health care equity capital markets at Deustche Bank Securities.

Yariv Ben-Ari will join Morrison Cohen as a senior counsel to the firm’s real estate department and its interdepartmental real estate finance and restructuring group.

“We are very excited about having Yariv join our firm. He has built out a very nice following of clients, and his skill sets match up very well with our hotel and hospitality practice, and our real estate finance and development clients,” said David Scherl, chairman of Morrison Co-hen. “When you combine Yariv’s skill sets with our shop’s middle-market-focused model (se-nior-level practitioners providing legal services at rational billing rates), we are very confident that he will be able to use our platform to signif-icantly expand his business.”

Mr. Ben-Ari will leave Herrick Feinstein, where he served as an associate.

Dallas-based Nex-Bank has hired Tamara Hambright as a senior vice president of ware-house lending within its mortgage banking divi-sion. She will report to Matt Siekielski, chief operating officer of the bank, who leads its com-mercial banking, mortgage banking and deposit op-erations platforms.

“Tamara has spent the majority of her career working in warehouse lending,” Mr. Siekielski said. “We’re very proud to have such proven in-dustry leaders to support our growing mortgage banking business.”

Ms. Hambright spent over 25 years as a senior vice president and manager of the mortgage purchase division at Southwest Securities FSB, where her responsibilities included devel-oping, implementing and managing several as-pects of its nationwide portfolio.

16

Work Force / March 2013 Hirings, promotions, defections and appointments

Changed jobs recently? Heard of a move?

Email cgaines@observer.com to be featured in Work Force.

Keith Bauer

Joseph Philip Forte

Dale Holzer

Tamara Hambright

TMO.0313.WorkForceCS3.indd 16 2/28/13 6:12:16 PM

24-hour commitments, fast closings Commercial loans for land development & acquisitions, bankruptcies, discounted payoffs, note purchases, workouts & foreclosures

In today’s credit crunch, banks and other lending institutions are simply not making loans anymore. In fact, they’re losing customers in the middle of pending transactions. So where do you go if you need money fast and you’re afraid your lender can’t close? Kennedy Funding. We can close your multimillion-dollar loan in days. No excuses, no delays, no kidding. Give us a call. We won’t leave you hanging.

$2,800,000

Note Purchase88,999 sf Retail Center

Mustang, Oklahoma

$5,300,000

Discounted Note Payoff141,791 sf Retail Center

Connersville, Indiana

$1,571,385

Note Purchase Office Building

Warren, Michigan

$1,900,000

Construction Condominium

Harlem, New York

Here are a few of our recent closings.

Untitled-28 1 2/27/13 12:11:57 PM

TMO.0313.CS3.50.indd 18 2/28/13 7:50:35 PM

19

March 2013 / 50 Most IMportant people

1 Barry sternlIchtChairman and CEO, Starwood Capital Group and Starwood Property Trust

Barry Sternlicht’s 2013 is off to a tremen-dous start. At the end of January, his Star-wood Property Trust and Starwood Capital Group agreed to buy LNR Property for $1.05 billion, ensuring diversi-fication of the business and expansion of the investment pipeline. In February, Starwood Property Trust was close to issuing a $450 million construction loan for phase one of the Related Companies’ Hudson Yards proj-ect, several sources revealed to The Mort-gage Observer. Last fall, along with a fund controlled by Starwood Capital Group, the REIT completed a $475 million acquisition and construction financing for the redevelopment of the Times Square Gateway Center at 701 Seventh Avenue.

Starwood Prop-erty Trust, the country’s largest REIT, has of-ficially entered the big leagues, establishing itself as one of the few companies able to provide the largest loans. As of December 2012, the company had about $482 million of investments expected to close in the fourth quarter of 2012.

The sun never set on Mr. Sternlicht’s empire. Last fall, Starwood Capital Group—which has $21 billion of assets under management—formed a European real estate finance platform to take advantage of the increasing need to refinance existing loans, as well as the ongoing demand for financing in Europe.

“God I hate these lIsts,” said one investment shop pro when asked to weigh in on what constituted “important” and who, exactly, might qualify for a list of the 50

Most Important People in Commercial Real Estate Finance.

In compiling the list—which is subjective and represents our view—we talked to many different people in the industry, consulted lists of top pro-ducers and paid close attention to our own month-ly charts of banks that are most active. We kept our focus on the New York tristate region, though not everyone on the list has his or her base here.

Geography was only one of several logistical challenges. For instance, who’s more important—brokers or lenders? And with CMBS on the rebound and expected to hit somewhere around the $70 bil-lion mark for 2013, how do conduits stack up?

“Brokers control the deals and the bankers con-trol the money—and the money makes the deal

happen,” one executive, himself a broker, told us. But then: “I feel like the brokers have the upper hand in the moment.”

For the most part, we came out on the side of the lenders who ultimately control the purse strings and pull the trigger to make a deal happen. The bulk of the names in the top 10 slots, in fact, are lenders—with only Ralph Herzka from Meridian Capital Group representing the brokers in this tier.

Among the groups absent are developers and attorneys, both of whom factor into our sister publication The Commercial Observer’s annual Power 100 list. But there is some overlap. Of the dozens of names on this, our inaugural list, many have a level of influence that, at least for now, places them on both lists.

Hopefully readers will agree with one top banker, who told us that lists like this one “are interesting and important” to the industry and that people like them in general. But of course, he’s on it.

the 50 Most

IMportant people

In coMMercIal real estate fInance

ILLuSTRATIoN BY ALEx FINE

TMO.0313.CS3.50.indd 19 2/28/13 7:23:57 PM

20

50 MOST IMPORTANT PEOPLE / March 2013

2 JAMES CARPENTERSenior Executive Vice President and Chief Lending Offi cer of New York Community Bank, Senior Executive Vice President of New York Commercial Bank

James Carpenter oversees a multifamily and commercial real estate portfolio at New York Com-munity Bank totaling $31.7 billion. Last year, the

bank closed $8.7 billion dollars worth of deals.

“Despite ever-increas-ing competition from existing lenders and new market entrants, NYCB maintained its strong pres-

ence in the New York City market as a leading portfolio

originator of mortgages secured by rent-regulated multifamily buildings,” Mr. Carpenter told The Mortgage Observer.

In 2012, Mr. Carpenter and his team closed a $300 million refinancing deal for a 30-story office building on Park Av-enue in Midtown Manhattan for a New York-based sponsor that is one of the largest owners and managers of commer-cial real estate in the United States, he said.

Shortly after closing the deal, NYCB brought in a major life insurance company as a 50 percent co-lender, said Mr. Carpenter. The bank has remained the administrative agent for the facility.

“NYCB has established itself as a preeminent commercial real estate lender in New York City,” he said. “We work hard to retain that reputation by closing high volumes of quality deals with certainty of execution.”

3 RICK LYONHead of Commercial Real Estate, Capital One

Mr. Lyon has presided over a steady period of growth at Capital One’s commercial real estate division, where conservative lending remains an emphasis. In the New York area, focus is placed on the bank’s $6 billion multifamily housing portfolio, primarily locat-ed in the outer boroughs. Lyon and his team closed a $12.2 million lending deal for the sale of 141 units on DeKalb Avenue in the Bronx. The group does not limit itself to those deals, however, and also handled the refinancing of the 702,815-square-foot building at 40 Worth Street in Tribeca in May 2012 with a $101 million first mortgage.

4 HOWARD LUTNICK, MICHAEL LEHRMAN, ANTHONY ORSOChairman and CEO, BGC Partners and Cantor Fitzgerald; CEO, BGC Real Estate; CEO, Cantor Commercial Real Estate, respectively

Over the course of its lifetime, Howard Lut-nick’s fi nancial brokerage fi rm BGC Partners, a Cantor Fitzgerald subsidiary, has completed a number of real estate capital markets transac-tions, including origination and securitization

of over $150 billion in commercial loans across 5,000 properties, managing CMBS funds with business in excess of $5 billion and successfully raising approximately $30 billion in equity capital over 90 transactions.

Mr. Lehrman oversees BGC’s real estate busi-ness, including Newmark Grubb Knight Frank.

Additionally, in his role with Cantor’s commercial real estate business,

Mr. Lehrman presided over the fi rst new CMBS platform in a decade to originate, securitize and lead manage its own deal, with an initial securitization of

$635 million.Anthony Orso has also

played his part in keeping Cantor’s commercial real estate unit busy. In 2012,

Cantor deals included the $26 million offi ce fi nancing at

251-259 West 36th Street and the $5 million fi nancing of retail space at 2012-2018 Broadway. The fi rm was also busy in the

multifamily space, particularly in the Bronx, where fi nancings

included a $9.8 million deal at 1460 Macombs Road.

5 ANDREW MATHIAS, DAVID SCHONBRAUNPresident and Co-Chief investment offi cer, SL Green Realty Corp.

Andrew Mathias started SL Green’s lending busi-ness in New York close to 15 years ago, and in that time the lender has emerged as one of the leading providers of subordinate debt capital to the New York market. With the business now headed up by

David Schonbraun, Mr. Mathias still stays involved, both on the origination side and struc-turing side. Historically providing

everything from preferred equity to mezzanine debt, SL Green has

been increasingly handling the origination of entire capital struc-tures. For RFR’s acquisition of 285 Madison Avenue in September 2012, SL Green provided a bridge loan for the entire in-vestment. Other borrowers have included Blackstone and RXR Realty.

Loans are a key compo-nent of SL Green’s business plan, offsetting lower-yielding equity transactions. Traditionally, the firm’s blend has been 90 percent real estate, 10 percent debt; currently SL Green holds $1.4 billion of loans on real estate against a total market capitalization of $16 billion.

“We think we are the go-to provider for subor-dinate capital in New York, without question,” Mr. Mathias said.

6 RALPH HERZKASee profile at left.

6 RALPH HERZKAChairman and CEO, Meridian Capital Group

Ralph Herzka is founder, chairman and CEO of Meridian Capital Group—

New York’s largest commercial mortgage brokerage fi rm. In 2012, Meridian closed

approximately 3,300 deals for a total volume of $20 billion, up from approximately 2,800 deals for

$17.3 billion the year previous. “I would say that 70 percent of our business is in the New

York metro area,” Mr. Herzka told The Mortgage Observer re-cently in a sit-down in his o� ce. “In New York City, there is no one that does as many deals and dollar volume as we do.”

A Brooklyn native, Mr. Herzka founded Meridian in his home borough in 1991. Since then, the company has closed approxi-mately $150 billion in fi nancings, moved its headquarters to lower Manhattan, and opened o� ces in New Jersey, Maryland, Florida, Arizona, California and Illinois. Mr. Herzka is also co-founder of the mortgage banking fi rm Beech Street Capital, as well as co-founder and member of the board of the commercial real estate lender and CMBS originator Ladder Capital. In 2012, Beech Street placed third on Fannie Mae’s annual list of top multifamily loan originators and was the top seller in the Northeast.

“We [at Meridian] started o� the year very strongly,” he said of 2013 so far. “In the fi rst seven weeks of the year we’ve already closed $4 billion, and we’re on track to exceed last year. Interest rates are always a sensitive part of what we do, the acquisition market remains very strong, and we feel that 2013 will be a better year than 2012.”

Strong relationships with lenders and a constant focus on clients are among the keys to Meridian’s success, Mr. Herzka said. “We are always focusing on what is the best strategy for the client.”

“He has a very unique and close relation with his client base,” Michael Maturo, president and chief fi nancial o� cer of RXR Realty, said of Mr. Herzka. Meridian arranged a $500 million loan for RXR’s acquisition of the Starrett-Lehigh Building in 2011. “He understands the need of the lenders extremely well and is able to explain the strategy in terms of the lending process. I fi nd working with Ralph to be a very smooth and e� cient process.”

Last year, Meridian arranged $127 million in fi nancing on behalf of Harbor Group International for an o� ce building at 200 Public Square in Cleveland, Ohio, and negotiated a $49.9 million loan for the Harrison Station luxury multifamily building in Harrison, N.J., on behalf of Ironstate Holdings and the Pegasus Group. Vornado Realty Trust, Steiner Studios, Cayuga Capital Management and Platinum Equity are also clients.

In 2012, 30 percent of Meridian’s transactions by dollar volume were for new clients, and the fi rm maintained a client retention rate of over 90 percent. The fi rm’s sta� is growing, too. Last year, Merid-ian set up a loan syndication group headed by Terry Baydala and launched an equity capital market group headed by Peter Steier. In fact, since January 2012, Meridian has hired 65 new people, bringing the total number of employees to just over 210 across the country.

Speaking of growth, in March Meridian will start a training pro-gram for its new hires. For seven weeks, a team of 10 people will learn everything about the fi rm and the commercial real estate fi nance market.

TMO.0313.CS3.50.indd 20 2/28/13 7:24:47 PM

Matt Petrula mpetrula@mtb.comDan Shields dshields@mtb.com212-350-2000

WHEN EXECUTION MATTERS,M&T DELIVERS.THE WITKOFF GROUP$230,000,000

Construction LoanCharles Street Condos

Administrative Agent &Joint Lead Arranger

TWO TREES MANAGEMENT$94,000,000

Acquisition LoanDomino Sugar Site, Brooklyn

Administrative Agent & Joint Lead Arranger

Experienced developers rely on M&T Bank to close complicated transactions quickly. Our relationship-

focused approach allows us to offer flexible options for even the most nuanced projects. And with one

of the industry’s longest tenured teams, M&T has the know-how and experience to help you close deals

with confidence. Find out how we can deliver for you.

THE STAHL ORGANIZATION$150,000,000

Construction LoanBridge Street Rentals & Condos, Brooklyn

Administrative Agent & Lead Arranger

FRIEDLAND PROPERTIES$153,000,000

Portfolio Loan Madison Avenue Retail Properties

Administrative Agent & Lead Arranger

THE BRODSKY ORGANIZATION$59,000,000

Construction Loans Chelsea Condos

EXTELL DEVELOPMENT CO. & ANGELO, GORDON & CO.$200,000,000

Retail & Residential ConversionThe Carlton House

Administrative Agent & Joint Lead Arranger

©2013 M&T Bank. Member FDIC. CS2138 (2/13)

CS2138 NYC CRE ad-10.25x12.25.indd 1 2/25/2013 3:15:08 PMUntitled-3 1 2/26/13 1:17:40 PM

22

Contact us to discuss your next fi nancing opportunity:

PATRICIA GOLDSTEINHead of Commercial Real Estate212-850-4300GoldsteinP@Emigrant.com

6 East 43rd Street, 22 Floor New York, New York 10017

• SUBSIDIARY OF THE LARGEST PRIVATELY-OWNED BANK IN THE U.S.

• ALL PROPERTY TYPES CONSIDERED NATIONWIDE

• OFFERING A VARIETY OF FLOATING RATE COMMERCIAL REAL ESTATE DEBT SOLUTIONS

• PORTFOLIO LOANS OF $15,000,000+

emigrant.indd 1 2/27/13 2:55:57 PM

50 MOST IMPORTANT PEOPLE / March 2013

7 ANDREW FARKASChairman and CEO, Island Capital Group

Last year was big for Andrew Farkas’s C-III Capital Partners. In January, the fi rm complet-ed its acquisition of NAI Global, which gave it access to an additional 5,000 real estate professionals. Multifaceted, to say the least, C-III Capital manages roughly $2 bil-lion of invested capital via four debt funds, according to its website. Then there’s the servicing capabilities, which placed it toward the top of several of the lists from the Mortgage Bankers Association’s year-end survey of commercial and multifamily servicing volumes for 2012.

8 JEFFERY HAYWARDSenior Vice President and Head of

Multifamily, Fannie Mae

Since January 2012, Jeff ery Hayward has been the head of mul-tifamily at Fannie Mae. By any measure, he said, “2012 was a terribly successful year” for the company, which remained the larg-est source of multifamily fi nancing. Last year was the third-highest acquisition year in Fannie Mae’s history, with $33.8 billion in fi nancing provided to the multifamily market. Approximately 98 percent of Fannie Mae’s loans were deliv-ered through mortgage-backed securities execution.

A� er 25 years with Fannie Mae, Mr. Hayward, said that “most people who work at Fannie Mae really feel a sense of mission.” Succeeding Ken-neth Bacon as a head of the multifamily business “was a spectacular leadership opportunity, and I felt honored to have the opportunity to serve” the company, he said.

In 2013, he said, he will continue “to serve the multifamily market and to en-hance our performances for the benefi t of taxpayers.”

9 DAVID BRICKMANSenior Vice President, Multifamily, Freddie Mac

In 2012, Freddie Mac had a record $28.8 billion in volume for its multifamily busi-ness, which David Brickman has headed since June 2011.

“It was a record year on multiple fronts, for the mortgage purchase activity, for securitizations and for earnings,” said Mr.

Brickman. “In 2012, we really got into a place were the company is healthy and

is growing.” The multifamily volume increased by 42 percent from $20.3 billion 2011. Freddie Mac has been fo-cusing on its securitization program, which in 2012 involved 88 percent of

the total volume of new loans. “We anticipate an

increase in securitiza-tion this year, with 10-year mortgage loans being the pre-dominant loan type as borrowers lock in the low interest rates.”

The stability of manage-ment, which under his guidance has not been aff ected by major changes, has been another point of pride for Mr. Brickman.

10 ALAN WIENERGroup Head of Wells Fargo Multifamily Capital

Alan Wiener and his team at Wells Fargo lent $9.5 billion for real estate projects throughout the U.S. last year, including the largest loan that HUD has ever done—a $621.5 million refi nancing deal to renovate Co-op City in the Bronx.

Within the New York area, the bank lent about $2.5 billion for multifamily real estate projects in 2012, he said. “Our business is extremely active,” Mr. Wiener told The Mort-gage Observer. “In the New York market, we’ve become a one-stop shop for all kinds

of real estate fi nance.”In mid-February this year,

Wells Fargo closed a $165 million deal for one of two new subsidized aff ordable income properties on the Queens waterfront.

“We led the larger of the two buildings, and we bought

the tax-credit equity on both buildings, which was about $30 mil-

lion,” said Mr. Wiener. Citibank handled the $80 million loan for the smaller of the two buildings, he said.

Wells Fargo ranked fi rst out of 105 com-panies on the Mortgage Bankers Associa-tion’s year-end survey for 2012, with $429.1 million in total primary and master servicing mortgage loans. The bank’s average loan size in that category was $12.2 million.

“Wells Fargo, probably by two or three times any other bank, is the largest estate lender nationwide,” said Mr. Wiener.

11 RAYMOND QIAOFirst Vice President, Bank of China

Not that you wouldn’t have noticed, but

TMO.0313.CS3.50.indd 22 2/28/13 7:26:08 PM

New York 212 925 6692Palm Beach Gardens 561 622 7022Austin 512 327 0101Newport Beach 949 706 3001www.missioncap.com

Mission Capital Advisor’s Debt and Equity Advisory team has raised more than $8 billion of capital for real estate owners and developers nationwide during their careers. Mission Capital is one of the leading capital markets advisory firms in the country, having completed more than $55 billion of financing, loan sale and Fannie Mae / Freddie Mac transactions since 2002. Contact Jordan Ray, Jason Cohen, Ari Hirt or David Tobin at 212-925-6692 or email finance@missioncap.com to discuss your debt and equity financing needs.

FROM DEBT & EQUITY CAPITAL ADVISORY...

CAPITAL MARKETS LIQUIDITY END TO END COAST TO COAST

TO CRE, C&I AND SINGLE FAMILY LOAN PORTFOLIO SALES

Exclusive Financial Advisor to M&I Bank on the Sale of 23 Portfolios of Performing

and Non-Performing Loans Secured by Various Real Estate Assets Located

Throughout the US

Exclusive Financial Advisor to CW Capital on the Sale of 29

Portfolios of Non-Performing Loans Secured by Various Real Estate Assets

Located Throughout the US

Sub-Performing and Non-Performing Mortgages Secured by C&I, Office/ Warehouse, Industrial/Warehouse,

Condominium, Multifamily, Golf Course Community, Residential Development Land,

and Golf Course Assets in AZ & WI

Non-Performing Commercial Mortgage Secured by a Retail

Property in Omaha, NE

$4,279,000,000Unpaid Principal Balance

$1,700,000,000Unpaid Principal Balance

$97,679,973Unpaid Principal Balance

$47,133,605Unpaid Principal Balance

2007 - 2012 2007 - 2012 3/2011 10/2010

New York, NY

New York, NY Miami, FL Miami Beach, FLMiami, FL

Miami, FL Chicago, IL Brooklyn, NY

Acquisition and Residential Condo Construction

The Gem Hotel Hotel Renovation Upscale Boutique HostelBoutique Hotel Portfolio

Acquisition of Fractured Residential Condominium Units & Rental Apartments

aLoft O’Hare75% LTV

Acquisition & Completion of a Rental Apartment

Building

$130,000,000Construction Debt and JV Equity

$27,000,000First Mortgage & Mezzanine Refinancing

$15,700,000Non-Recourse Renovation Financing

$12,050,000Non-Recourse Acquisition & Renovation Loan

$19,750,000Acquisition & Renovation Loan

$100,000,000Debt and JV Equity

$16,500,000First Mortgage Refinancing

$19,500,000JV Equity & Non-Recourse

Construction Financing

Liquidity-Ad_Ideas_2.indd 1 2/25/13 11:28 AMUntitled-4 1 2/25/13 5:18:43 PM

24

50 MOST IMPORTANT PEOPLE / March 2013

new york community bancorp

A Top Performing InstitutionNew York Community Bancorp (NYSE: NYCB) has been recognized as one of the nation’s top performing financial institutions. We are distinguished by our consistent record of profitability, asset quality, and capital strength.

With assets of $44.1 billion, deposits of $24.9 billion, and a market cap of $5.8 billion, we rank among the nation’s 25 largest finanical institutions. We also are the leading producer of multi-family loans for portfolio in New York City - a market we’ve been lending in consistently for more than 40 years.

To learn more about us we invite you to visit our website: www.myNYCB.com

Asian banks are in and European banks are out when it comes to supplying the lion’s share of New York’s high-profi le commercial mort-gages. And Bank of China is at the forefront of this shi� .

“We don’t like to be published,” Mr. Qiao said. “We’re not allowed.” He did concede, however, that in New York last year, the bank had issued $2 to $3 billion in commercial mortgages—loans such as the $775 million fi rst mortgage, now replaced, for SL Green’s 1515 Broadway and $600 million for real estate investor Joe Chetrit’s acquisition of the Sony Building at 550 Madison Avenue.

12 JONATHAN POLLACKManaging Director and Global Head of Commercial Real Estate, Deutsche Bank

Jonathan Pollack help set a new precedent for CMBS lending in 2012, while maintaining steady growth in Deutsche Bank’s overall CRE lending, valued at $17 billion for the year.

"We had some pre� y nice landmark single-asset deals, both on the securitization side and

the balance-sheet side,” Mr. Pollack told The Mortgage Observer. “The fi rst one of the year happened to be in New York, and that really got the ball rolling."

That deal was for $625 million in commer-cial-mortgage bonds for developer Sheldon Solow’s 50-story tower at 9 West 57th Street. The deal closed in February 2012 and was rated AAA.

"We demonstrated that CMBS could give pricing on institutional assets which was com-petitive or inside of insurance company pric-ing,” said Mr. Pollack. “So it really opened the market for CMBS lenders to compete for the top-notch buildings. That success has a cyclical nature to it. Each successful CMBS deal opens doors for us to do more”

For the second year in a row, Deutsche Bank was ranked the top CMBS issuer in 2012 for both the U.S. and global markets,

according to Commercial Mortgage Alert's year-end summary. The bank issued $9 billion in the U.S. and $10.5 billion globally last year.

13 MATT GALLIGANExecutive Vice President and Group Head, CIT Real Estate Finance

In its fi rst year, CIT Real Estate Finance,

under Ma� Galligan’s guid-ance, closed deals for a total volume of $1.1 billion. In November 2011, Mr. Galligan was appointed to launch CIT Group Inc.’s new real estate division a� er serv-ing as head of U.S. property fi nance for Bank of Ireland, which had to liquidate its U.S. portfolio due to the ongoing euro zone crisis.

In 2012, Mr. Galligan was able to bring the newly created division—and his fi � h startup—to profi tability. “It was a fantastic year,” Mr. Galligan said. “We hit the market perfectly.”

In March 2012, CIT Real Estate Finance closed on a $50 million commitment in a $700 million syndicated construction loan

for Extell Development’s One57. Most recently, CIT Real Estate

Finance was the lead arranger of a $35.7 million fi nancing for Garrison Investment Group on 12 shopping centers in the Midwest. The move is in

line with Mr. Galligan’s goal for 2013: the company plans

to further emphasize its national orientation, he said.

14 ROBERT VERRONEPrincipal, Iron Hound Management

Robert Verrone founded Iron Hound a� er leaving Wachovia in

2008, and since its founding, the fi rm has closed $9 billion in deals between

its restructuring and brokerage busi-nesses. Iron Hound has completed another $2 billion in recapitalizations, as well as a further $1.5 billion in debt deals. The broker-age business continues to grow, with a num-ber of deals currently in the pipeline. Some of Mr. Verrone’s past deals have included 14 Wall Street, 666 Fi� h Avenue and 3 Colum-bus Circle.

15 BRIAN HARRIS, MICHAEL MAZZEI, GRETA GUGGENHEIM CEO, President and Chief Investment Offi cer, Ladder Capital

Led by this trio, Ladder Capital has originated $2.6 billion in com-mercial real estate fi rst mortgage loans over nine securitizations since the fi rm’s inception. Ladder

TMO.0313.CS3.50.indd 24 2/28/13 7:27:00 PM

CONGRATULATIONS TO

on being recognized among the

50 Most Important People

in Commercial Real Estate Finance.

We salute all the honorees.

ANDREW MATHIAS

DAVIDSCHONBRAUN

President

Co-Chief Investment Offi cer

SLG-2190 AndrewMathiasCongratsAd.indd 1 2/27/13 11:23 AMUntitled-35 1 2/27/13 1:09:51 PM

26

50 Most IMportant people / March 2013

18 robert MerckSenior Managing Director and Head of Real Estate Investments, MetLife

“It wasn’t the mail room,” said Robert Merck, senior managing director and head

of real estate investments at MetLife, of his first job at the company. “You could probably

say that I was an analyst in our real estate eq-uity asset management group.”

It’s easy to understand why he can’t remember with any degree of clarity—this was, after all, 1982. Mr. Merck, who grew up in Macon, Ga., was finishing up his MBA at Georgia State University at night when he joined the Atlanta real estate office of MetLife.

Now, as senior managing director and head of real estate invest-ments at the company, he oversees a portfolio of commercial real estate mortgages valued at about $43 billion.

In addition to the commercial mortgage facet of the business, Mr. Merck also manages the equity real estate portfolio, agricul-tural lending—this came under his purview in 2004, along with a new third-party asset management division.

On the debt side, reached by phone recently, Mr. Merck said that MetLife would like to continue to grow the $43 billion port-folio “as the assets of the company grow.” He told The Mortgage Ob-server that commercial mortgages had been very good investments, “delivering strong relative value over fixed-income alternatives”—a strength that remained even during the downturn.

Noteworthy 2012 commercial mortgage transactions include $253 million for 101 California Street in San Francisco—a Class A of-fice tower that the government of Singapore bought late in the year from Hines for a reported $910 million; $362 million for Manhat-tan’s Waterside Plaza, a 1,471-unit residential complex on the East River; $258 million for the Westin Times Square Hotel; and $130 million for 551 Fifth Avenue.

“One of our competitive edges or strengths is our ability to write large loans on our own,” Mr. Merck said when asked about these recent deals. “We can write single-asset deals—we’re comfortable going up to, say, $400 million, and that sets us apart from a lot of the competition. We also have a regional office network of eight U.S. re-gional offices around the country—they’re geographically dispersed in major markets—and that allows us to better source deals on the ground as well as better manage assets in our portfolios.”

About 80 percent of the company’s business is with repeat cus-tomers, a category that the hotel deal falls under, though Mr. Merck pointed out that the company will lend on high-quality hotels in ma-jor markets. The borrower for the 45-story, 863-room Westin, which opened in October 2002, is Tishman Hotels—also the developer.

“We have a long-standing relationship with Tishman Hotels that really dates back to the 1980s, when we developed the Dolphin and Swan Hotels at Disney World with them.”

The process of building long-term relationships is something that Mr. Merck said he enjoys about his job, though, so he was quick to add that MetLife is always looking to establish new relationships and further expand that reserve of repeat customers.

When asked what else he likes about the career he’s spent 30 years building, much of it managing a sizable debt portfolio, he referenced both the ability to put a deal together and the kick-the-bricks nature of his work.

closed two securitizations in 2010, three in 2011 and four in 2012. In June of 2012, Ladder announced a $1.1 billion securitization of commercial real estate first mortgage loans. In the third quarter of 2012, Ladder participated in two CMBS transactions with a total contribution of $645 million in first mortgage loans. Past loans have included $230 million originated for the Durst Organization’s 1133 Avenue of the Americas, $45 million to Lighthouse International’s 111 East 59th Street and $75 million for the Related Companies’ 1 Union Square South.

16 GIno MartoccI, peter D’arcyMetro Area Executive and Regional President for New York City, M&T Bank

Gino Martocci and Peter D’Arcy oversee a $7 billion port-

folio of loans in the tristate area for M&T Bank. That portfolio includes $2 billion in originated loans. In late 2012, their team

closed a $315 million deal in New York City for the retail and condo-

minium conversion of the Helmsley Carlton House for Extell Development

Company and Angelo, Gordon & Co., and a $153 mil-lion deal for Friedland Properties’ 19,100-square-foot retail property, both on Madison Avenue.

The M&T bankers, who were both recently promoted to oversee expanded territories, also recently closed a $39 million deal in Princeton, N.J., for the senior multifamily apartment complex Copperwood.

Mr. Martocci, Mr. D’Arcy and company have big plans for more commercial real estate financing in the Garden State in 2013 as they get ready to add over 95 branches to their network through the pending acquisition of Hudson City Bank Corpora-tion.

“We are a relationship-focused bank,” said Mr. Martocci. “So to the extent that our clients are doing it, we’ll do it.”

M&T Realty Capital Corporation was ranked 24 out of 105 companies on the Mortgage Bank-ers Association’s year-end survey for 2012, with $11.1 million in total primary and master servicing mortgage loans. M&T’s average loan size in that category was $10.4 million.

17 John pelusI, MIke tepeDInoCEO and Senior Managing Director, HFF

Real estate capital intermediary HFF ranked highly in the Mortgage Bank-ers Association’s 2012 year-end list of commercial/multifamily mortgage servicers. The firm ranked 11th in total loan volumes in 2012, with $31.3 billion in arranged loans and an average loan of $13.7 million. The firm ranked seventh in CMBS loans, with $11.5 billion in total volume and an aver-age loan of $16.2 million. HFF further appeared in the top 10 for commercial bank loans and life insurance company loans. Mr. Pelusi, an executive

managing director based in Pitts-burgh, has worked with a number of high-profile clients, including Bank of America, Blackstone Real Estate Advisors, JPMorgan Investment Management, Macquarie and TIAA-CREF. Two of his largest deals have been with Equity Office Portfolio Trust in Chicago and Austin, with values of $2.78 billion and $1.15 billion, respectively. Mr. Tepedino is a senior managing director based in New York and working with clients such as Beacon Capital Partners, Ivestcorp International and Sterling American Property. One of his largest arranged loans was a $775 million adjustable-rate loan for 1515 Broadway.

18 robert MerckSee profile at left.

19 DavID DurnInGIncoming President, Prudential Mortgage Capital Company

Later this month, David Durning will succeed David Twardock as president of Prudential Mortgage Capital Company. “These will be big shoes to fill, but David has been a terrific role model and manager, and I feel comfortable with his inheritance,” Mr. Durning said. Mr. Durning has been with Prudential since 1988, and for the last 15 years has worked closely with Mr. Twardock, most recently as a senior managing director and head of origination. The partnership will ensure an “easy and smooth transition,” Mr. Durning said.

Prudential Mortgage Capital Company pro-vided $12.2 billion in financing in 2012, which was the second-highest year ever for the company. “We are targeting $13 billion for 2013,” Mr. Durning said. Key components of this growth strategy will be the expansion of international financing, especially in Europe, increased lending from the Agency Gate-way Program for multifamily properties, health care lending and CMBS lending volume.

The $200 million refinancing of the Newport Port Tower office building in Jersey City, N.J., is among the largest deals closed by Prudential in

2012 in the tristate area.

20 steve kennyNew York/New Jersey Commercial Real Estate Region Executive, Bank of America

Merrill LynchSteve Kenny and his team

closed more than $10 billion in commercial real estate transactions for

New York and New Jersey in 2012, the Bank of America real estate executive said. But he noted that the bank’s CRE lenders are not

TMO.0313.CS3.50.indd 26 2/28/13 7:27:28 PM

www.walkerdunlop.comCommercial Real Estate Finance

FHA Bridge

Fannie Mae Freddie Mac

CMBS Life Company

Your PropertyOur Financing

Drew AndermanSenior Vice President, Multifamily Finance

danderman@walkerdunlop.com212/953-7301

Steven HellerSenior Vice President, Multifamily Finance

sheller@walkerdunlop.com609/833-3203

Untitled-3 1 2/26/13 1:20:17 PM

28

50 MOST IMPORTANT PEOPLE / March 2013

rewarded on “purely growing the outstandings of the book” and focus equally on establishing diversifi ed, full-service relationships with clients.

In the second half of the year, Mr. Kenny oversaw an offi ce refi nanc-ing deal in Midtown Manha� an for over $300 million for a client with an existing loan that was maturing. That client was looking for certain-ty of speed and execution, he said.

Bank of America Merrill Lynch ranked fourth out of 105 companies on the Mortgage Bankers Association’s year-end survey for 2012, with $112.5 million in total primary and master servicing mortgage loans. The bank’s average loan size in that category was $12 million.

“Last year we improved our portfolio in the broad New York and New Jersey real estate community by more than 30 percent from 2011,” Mr. Kenny told The Mortgage Observer. “We did that by continuing to win the trust and respect of our clients, and that includes adding several new clients.”

To accommodate that growth, Mr. Kenny said, he expanded his staff last year

by adding “diverse but comple-mentary talent.”

21 DOUG TIESI Managing Director and Head of

Com mercial Real Estate for the U.S., RBS

Mr. Tiesi joined ABN Amro as head of European Real Estate in 2004 and then joined RBS in 2007. Two years later, he came stateside to re-establish RBS’s commercial real estate business here. It would diffi cult to talk about the current re-emergence of the conduit market without mentioning him. That’s because in 2010, he conceived and executed the fi rst post-fi nancial-crisis multi-borrower CMBS transaction—RBSSI 2010-MB1—a $300 million deal that gave the mar-ket a much-needed shot in the arm. Now, roughly

two years later, the bank’s 2012 securitization volume hit $3 billion, with a projection of

$4 billion for 2013.

22 MARK FINERMANCEO, Jeff eries LoanCore

Jeff eries LoanCore—a joint venture between Jeff eries Group,

the Government of Singapore Invest-ment Corporation and LoanCore Capital,

where Mr. Finerman was a managing director—launched in 2011. At the time, Mr. Finerman, the newly minted Jeff eries LoanCore CEO, said that it would “respond to the capital needs of commer-cial real estate owners and investors across the United States.” Now, several years later, the initial $600 million equity commitment has yielded posi-tive returns for investors.

“That’s been doing very well,” Mr. Finerman told The Mortgage Observer. “It’s about two years into it, and it’s been doing great. The returns have been great.” Mr. Finerman, who runs the debt side of the funds, said that it has fi nanced multiple asset types and also purchased a diverse array of debt.

In addition to his responsibilities as CEO of Jeff eries LoanCore, Mr. Finerman is also a partner

in the Divcore private equity fi rm—which includes the LoanCore debt funds and

the Divco West Equity Fund.

23 JASON PENDERGISTHead of Commercial Term Lending for

the East, JPMorgan ChaseLast year, Jason Pendergist oversaw

a portfolio of 700 loans for the New York metropolitan region valued at $2 billion, part of Chase’s $15 billion portfolio in 15 markets around the country.

As business picked up over the past 18 months, Mr. Pendergist said, he grew his staff to 100 em-ployees from just under 40.

“Coming through the fi nancial storm of 2008 and 2009, as we had worked through those chal-lenges it became a simply a ma� er of ge� ing back to business as usual,” he told The Mortgage Ob-server. “My role was to bring the expertise, culture and success stories we experienced out West to the Northeast market.”

Among multiple transactions last year, Mr. Pendergist and his team closed three deals in New York in the fourth quarter: a $38 million package of 13 loans for a work force housing property in the Bronx, a $25 million package of 18 loans for a multifamily/retail property in the Upper West Side and an $18 million cash-out refi nance deal for a multifamily property in Westchester.

“We’re one of the nation’s largest lenders in the apartment lending space,” he said. “We’ve been in this business nationally for be� er than 40 years.”

24 SIMON ZIFFPresident, Ackman-Ziff

Pennsylvania native Simon Ziff has certainly made his mark in New York over the course of his nearly 25-year career: the six Ingenious Deal of the Year awards Mr. Ziff has received from REBNY are indicative of his success. Among Ackman-Ziff ’s completed transactions in 2012 were a $46.25 million refi nancing and a $5.9 million acquisition loan of a 149-unit portfolio in New York spread across both residential and retail compo-nents. The group also closed a portfolio of loans totaling $65 million over 17 properties, including 268 multifamily units. Additionally, Ackman-Ziff arranged close to $1 billion in construction loans over 12 deals in 2012.

25 GREGG GERKEN, ROY CHINHead of U.S. Commercial Real Estate, TDBank; Regional Director of Commercial Real Estate, TDBank

As head of TDBank’s commercial real estate unit, Gregg Gerken has pre-sided over a business which has booked upward of

28 DAVID TOBINPrincipal, Mission Capital Advisors

Founded by David Tobin in 2002 as just a fi ve-person fi rm focused on note

sales, with some debt and equity capital-raising activities, Mission Capital Advisors

is brimming with both business and employ-ees—so much so that Mr. Tobin said they’ll be look-

ing for larger o� ce space when their current lease is up. “Fast-forward to 2008, 2009—business has been steadily

increasing up until then, and then it really took o� ,” Mr. Tobin said. “Even though our note sale business was growing nicely during the upturn, it’s a fundamentally counter-cyclical busi-ness. So when banks started going sideways, we really kicked into high gear.”

Major contracts with the FDIC and the Federal Reserve Bank of New York followed. In 2012, Mission traded roughly $3.8 bil-lion of commercial and residential real estate loans, which rep-resented a 23.5 percent increase over the year previous.

Then, over the course of both 2011 and 2012, Mission closed $730.5 million of debt and equity transactions. This volume includes land loans for condo developments in New York and Florida.

Asked how the debt and equity side compares with the note sales side, and how the two shift as a percentage of Mis-sion’s business, Mr. Tobin explained by taking a look back over the past several years.

“It was basically zero in 2009,” he said of the volume of debt and equity business. Now, he pointed out, the fi rm has sta� ed up that group, a refl ection of how that portion of the business has grown. “From zero, I would say that if you take our 2011 and 2012 totals, which probably measure somewhere on the order of $8 billion of debt sold, those guys have done close to $1 billion of debt and equity over the same period.”

He estimated that this made it 10 percent of their business and added that “I would expect [it] within two years to be 50 percent of our business.”

The Mortgage Observer asked Mr. Tobin if having a multi-functional business—in which clients buying sub-performing and distressed debt deals on the private equity side return to invest JV equity in real estate deals Mission arranges—was always a goal.

“It was always the intent, but the debt trading side was the thing that took o� immediately when we started the fi rm in 2002,” he said. “So in 2002 we were still cleaning up the ’98 mess and the dot-com implosion mess, and that accelerated to ’06, and it was busy, and we did new origination trading where banks are buying portfolios of newly originated loans and trad-ing them and syndicating them. When the wheels came o� everything, we were just perfectly positioned to help clean up the mess.”

Next up for the fi rm, he said, is investment sales. “We’re li-censed in a number of states, and we’re rolling out that whole platform, because it dovetails well with the note sales platform,” Mr. Tobin said. “Ideally, we will be a very diversifi ed, multiple-o� ce shop at the end of 2014.”

TMO.0313.CS3.50.indd 28 2/28/13 7:28:47 PM

w

$36,750,000Acquisition Loan Package

Upper Manhattan Residential Portfolio

A package of 10 multifamily properties containing a total of 473 apartments and 1 commercial space

Adam Brostovski, Principal, arranged the fi nancing for this transaction

GCP Capital Group , LLC60 Cutter Mill Road, Suite 600 • Great Neck, NY 11021

Phone: 516-487-5900 • Fax: 516-487-5944www.gcpcap.com

GCPMarch.indd 1 2/27/13 11:48:32 AM

30

That’s what makes us a perfect f it for your business

© 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. VCS-5015

For business banking solutions, contact:

Christopher J. Coiley First Senior Vice President 212-253-3055ccoiley@valleynationalbank.com

Big bank resources and small bank personal service

800-522-4100valleynationalbank.com

The Perfect Fit

Valley National Bank has provided personalized banking and nancing solutions to businesses since 1927. Our experienced professionals will take the time to understand what is essential for your nancial success.

• Banking • Financing • Construction Loans• Cash Management & Corporate Services

• Commercial Real Estate Mortgages • Financial & Retirement Planning• Life, Health, Home & Auto Insurance• Commercial Property or Liability Insurance

Congratulations Christopher Coiley for being named one of the Top 50 professionals in the Commercial Real Estate Finance Industry!

5015_C Coiley BusBanking_4.5x11.indd 1 2/28/13 8:23 AM

50 Most IMportant people / March 2013

$2.5 billion worth of business per year for the past three years. The firm operates predominantly in the major East Coast markets and is building out its New York operation, where Roy Chin has joined on as regional director of commercial real estate.

In New York, cautious optimism has been replaced by full optimism, Mr. Gerken said. “It’s not just significant development but projects of both size and scale, which dwarf other metropolitan areas,” he told The Mortgage Observer. With the large amount of equity being used in the New York market, Mr. Gerken is optimistic for TDBank’s business, as markets on the East Coast, most significantly New York, continue to rebound.

26 tobY Cobb, JustIn KennedY Co-CEOs, LNR Property

Messrs. Cobb and Kennedy—number 36 on sister publication The Commercial Observer’s Real Estate Power 100 list for 2012—will soon join several other

members of Barry Sternlicht’s empire. “The entire LNR

team is extremely excited to be joining the Starwood family,” the pair said in January

2013 when Starwood Property Trust

and Starwood Capital Group announced that they had agreed

to buy LNR for $1.05 billion in cash.

Both will stay on at LNR, the largest special

servicer, with $130 billion in loans under management.

It’s been a long road for the Miami-based special servicer, which Messrs. Cobb and Kennedy took over and turned around with the help of a massive infu-sion of cash. Job well done.

27 boYd FelloWs, steW Ward, CHrIs toKarsKI, Warren de Haan, andreW sossen President, Chief Financial Officer, Chief Credit Officer, Chief Originations Officer, Chief Operating Officer, Starwood Property Trust

Behind the success of Starwood Property Trust

is a team with a long history. President Boyd Fellows, Chief Financial Officer Stew

Ward, Chief Credit Officer Chris Tokarski and Chief Originations Officer Warren de Haan have worked together for over two decades and were hired by Berry Sternlicht in October 2010 to form the executive team of the REIT, along with Chief Operating Officer and General Counsel Andrew Sossen—who had been hired in 2009.

Together with the equity team of Starwood Capital Group, they have created a formidable team. According to recently released 2012 year-end results, Starwood Property Trust in-vested over $1 billion in the fourth quar-ter of 2012 alone, and $2.6 billion for the full year—primarily in the origination and acquisition of new investments. As of February 23, 2013, the company had approximately $1.4 billion of loans and investments in various stages of due diligence under term sheets.

28 davId tobInSee profile on previous page.

29 steven sternGlobal Head of Real Estate, Morgan Stanley

As global head of real estate at Morgan Stanley, Steven Stern has shepherded a massive volume of loans—some $5 billion in 2012, with $7 billion-plus projected for 2013. He joined the bank 18 years ago and has been in the industry for 27 years, previously working at both Goldman Sachs and a predecessor company that Morgan Stanley acquired.

With about $100 billion of lending in the United States in the last 15 years, there are many notable deals to choose from, but 2012 highlights include a $185 million first mortgage for 50 Beale Street in San Francisco and $265 million pro-vided to recap the Chrysler East office building at 666 Third Avenue in Manhat-tan. “We do almost every property type out there,” Mr. Stern told The Mortgage Observer. “When you lend $100 billion, your reach is pretty far.”

30 WIllY WalKerChairman, President & CEO, Walker & Dunlop

Following the com-pany’s acquisition of CWCapital, completed in September 2012 for an aggregate purchase price of $234 million, Walker & Dunlop became the eighth-largest commercial real es-

TMO.0313.CS3.50.indd 30 2/28/13 7:29:25 PM

From

Joseph J. DePaolo, President & CEO

Scott A. Shay, Chairman of the Board

John Tamberlane, Vice Chairman

www.signatureny.com member FDIC

Congratulations to

George Klett

Named one of the

Top 50 in the

Commercial Real Estate

Finance Industry

By The Mortgage Observer

and your colleagues at Signature Bank

Untitled-47 1 2/27/13 5:06:30 PM

32

50 Most IMportant people / March 2013

tate lender and the 11th-largest commercial/multifamily mortgage servicer in the United States.

Mr. Walker told The Mortgage Observer when the deal was announced that it would strengthen Walker & Dunlop’s lending pres-ence in the New York tristate area. Reached recently by phone, he said that this has, in fact, come to fruition, pitting Walker & Dunlop against competitors like Wells Fargo and CBRE.

“I’m very pleased with the amount of deal flow that we have coming out of Manhattan right now and love that we are competing head to head with some of the largest providers of capital in that market,” Mr. Walker said. As an example, he referenced $120 million in Fannie Mae financing that the revamped company provided for TF Cornerstone Equities’ 45-40 Center Boulevard multifamily development in Long Island City.

Walker & Dunlop and CWCapital combined to provide $9.5 billion in financing in 2012, he added—the bulk of which was for multifamily. Also of note: Walker & Dunlop is the No. 1 Fan-nie Mae DUS lender for 2012, having moved up from the 10th slot over the past five years.

31 DavID lehManManaging Director and Co-Head of the Structured Products Group Trading Desk, Goldman Sachs

Hired by Goldman Sachs back in 2004, Mr. Lehman is, ac-

cording to sources, a senior banker there now in charge of its CMBS opera-

tions, which in 2013 are expected to top out at $10 billion—up from just $4.6 billion in 2012.

32 Josh Zegen President and Co-Founder, Madison Realty Capital

Since the firm was founded in 2004, Madi-son Realty Capital has invested in roughly $1 bil-lion in loans. It also provides a steady stream of middle-market financing for institutional investors throughout the United States.

Mr. Zegen himself has closed at least $900 million in commercial real estate debt, over more than 150 transactions.

In 2012, MRC closed $155 million in debt acquisitions and originations—up from $125 million the year previous.

33 george KlettGroup Director, Executive Vice President and Chairman of the Commercial Real Estate Committee, Signature Bank

With over 15,000 loans worth approximately $40 billion, George Klett claims to have fi-nanced more properties in New York City than anyone else. In almost four decades in the busi-ness, the executive president and chairman of

the commercial real estate committee at Signature

Bank has developed a long list of clients who can rely on him.

“We know the market very well, and we can make

quick decisions,” Mr. Klett said. In March 2012, Mr. Klett noted, he

closed on a $50 million loan on a development at 518 Fifth Avenue for Thor Equities in just five business days. Later, Signature Bank closed on a $39.9 million loan on 27 West 24th Street for the Kaufman Organization in two weeks, before the end of the year.

In 2012, his team’s new origination, not includ-ing payoff, totaled 769 loans for a volume of $2.7 billion, up from 545 loans for $1.8 billion in 2011.

34 rIcharD spengler Executive Vice President and Chief Lending Officer, Investors Bank

When Richard Spengler joined the New Jersey-based Investors Bank in 2004, the bank didn’t have a commercial real estate portfolio. Today, Mr. Spengler is chief lend-ing officer and executive vice president, and Investors has a portfolio worth over $5 bil-lion. In 2012, his team closed approximately 450 deals for a volume of $1.8 billion, up from a $1.2 billion volume in 2011.

Mr. Spengler said, “2012 was a great year, it exceeded our expecta-tions,” noting that profitability increased while nonperforming loans declined. The new year is already off to a good start for the bank. It just closed a $44.1 million loan on an apartment build-ing at 290 George Street, in New Brunswick, N.J., and on a $40 million refinancing of an office build-ing at 95 Greene Street, in Jersey City, N.J.

35 Jeffrey Krasnoff, Jay MantZ

CEO, President, Rialto CapitalMr. Krasnoff founded Rialto in

2007 and, with over 35 years of experience in the real estate business, has evaluated and overseen at least $300 billion in real estate assets world-wide. Mr. Mantz joined Rialto in 2011, after nearly 20 years with Morgan Stanley, to head up the firm’s real estate investment man-agement arm.

Rialto focuses on dis-tressed and undermanaged commercial and residential loans, properties and securities. Since 2009, it has invested or initiated workouts of billions of dollars in real estate assets. The firm has acquired over $5 billion in distressed loans and properties during its current investment cycle and is a major player in the CMBS space.

38 saM gIarrussoHead of Commercial Real Estate Lending, BankUnited

Retired after more than a quarter-century with M&T Bank, Sam Giar-

russo was called back into action by BankUnited CEO John Kanas to start a

New York commercial lending business this year. Competitors earlier in their careers, Messrs. Giarrusso and Kanas will aim to serve past clients and bring together their respective successes from M&T Bank and North Fork Bank.

“We are combining our expertise and putting it together, and hopefully we will come out the other side with a very successful platform,” Mr. Giarrusso told The Mortgage Ob-server.

With only a couple of weeks of business under its belt, the new BankUnited lending team has looked at close to $500 million in potential deals. In the pipeline, the bank has nearly $40 million worth of loans for which they have issued term sheets, which is “not bad for a week and a half worth of work,” according to Mr. Giarrusso.

BankUnited will start with medium-grade loans and ratchet up the business from there, so that no one loan takes a large percentage of the business. The expectation is that with the backing of a well-capitalized bank, business will be strong.

A Florida-based bank with close to 100 branches in the state, BankUnited went public in January 2011 with the larg-est IPO for a bank in U.S. history. New York and Long Island branches of the bank will be opening in the coming weeks.

The lending team will place a priority on responding quickly to deal proposals. “We will be using the staff’s skills to be able to quote a deal and not let them sit around and get stale,” Mr. Giarrusso said.

Having headed M&T’s New York lending business for 14 years, Mr. Giarrusso knows the New York market. Between M&T Bank and its subsidiary, East New York Savings Bank, Mr. Giarrusso and his partners built a loan portfolio of close to $7 billion.

M&T’s business built credibility by withstanding the mar-ket downturn of 1989-90. “We kept the doors open because we didn’t have any real scratches; we were capable of keeping the welcome mat open,” Mr. Giarrusso said.

Previously named to The Commercial Observer’s Power 100, Mr. Giarrusso has also served as finance committee chairman of the Real Estate Board of New York.

Mr. Giarrusso expects BankUnited’s new business line to be as competitive as most in New York. Already, Mr. Giar-russo has been meeting with clients, old and new, who are interested in working with BankUnited. Thus far, the recep-tion has been positive.

“I’m having too many lunches, which is dangerous for an Italian guy,” Mr. Giarrusso joked. “A lot of people out there want to hear about BankUnited and work with us. I’m sacri-ficing my body.”

TMO.0313.CS3.50.indd 32 2/28/13 7:30:39 PM

FOR MORE INFORMATION:

Investment Sales & Acquisitions Equity, Debt & Structured Finance

212.841.7500

One Court Square

71 Smith Street

100 Church Street

450 Lexington Avenue

88 Leonard Street

Dermot Portfolio

400 Madison Avenue

590 Fifth Avenue

610 Broadway

Vornado Portfolio

Corporate Finance & Investment Banking

*Tombstones represent a sample of 2012 transactions.

Untitled-39 1 2/27/13 3:01:36 PM

34

50 MOST IMPORTANT PEOPLE / March 2013

36 THOMAS HYLANDSenior Vice President, Market Manager for New York, PNC Bank

“PNC in the New York metro area did $1.7 billion,” Mr. Hyland told The Mortgage Observer. “It’s a combination of construction loans and term loans. And we’ve done a fair amount of multifamily, office and some retail.”

He added that the bank is selectively, with top-tier sponsors, doing condominiums—emphasis on “top-tier.”

Among recent deals, PNC is the lead lender on 11 Times Square, the SJP Proper-ties tower where Microsoft recently inked a 400,000-square-foot lease. It also did the loan for the construction of 2 Riverfront Center, where SJP Properties is building the North American headquarters of electronics giant Panasonic.

37 SPENCER HABERChairman and CEO, H/2 Capital Partners

Formerly the president of iStar Financial, Mr. Haber launched institutional alterna-

tive investment shop H/2 Capital in 2004. Since then, the firm has grown to over $8.5 billion in assets under

management. In 2012 alone, it invested $2.5 billion, with a focus on commercial

real estate assets.

38 SAM GIARRUSSOSee profi le on previous page.

39 JAY SUGARMANChairman and CEO, iStar Financial

In 2012, iStar Financial kept reducing its net debt. In 2013, it will commence new investments, CEO Jay Sugarman an-nounced. At the end of the fourth quarter of 2012, iStar Financial reported $4.7 billion in net

debt, down from $5.8 billion in 2011 and from $12.5 billion in 2008. The year “2012 was

an important [one] for the company, as we strengthened the balance sheet, bolstered liquidity and paved a debt maturity runway until 2017, enabling us to begin ramping

up new investment activity in 2013,” Mr. Sugar-man said when the fourth-quarter 2012 results were announced. The company’s total portfolio had a carrying value of $5.7 billion at the end of 2012.

Mr. Sugarman is expected to step down from his position as a chairman of LNR Property, the largest special servicer in the country, when its sale to Starwood is completed later this year; iStar is expected to generate $220 million from

the sale of its 24 percent share.

40 CHRISTOPHER COILEYFirst Senior Vice President and Division

Head of New York Commercial Real Estate Lending, Valley National BankA 23-year veteran of Valley National

Bank, Christopher Coiley started out as a management trainee. Now, following a recent promotion, he heads up a division tasked with cultivating commercial real estate lending rela-tionships east of the Hudson, in New York’s five boroughs and Long Island.

“We do development, underlying co-op, some retail—a little bit of everything,” Mr. Coiley said. “In 2012 we did about $450 million.”

These include Tribeca and Soho development deals. He added that the goal for 2013 is to hit over $500 million for the year, “and we’re well on our way.”

41 GRACE HUEBSCHERPresident and CEO, Beech Street Capital

Ms. Huebscher co-founded Beech Street Capital in the fall of 2009 and, as of January 2013, has grown it to more than $7.5 billion in originations. Making Fannie Mae’s list of top multifamily originators for 2012, Beech Street ranked third for the second year in a row, grow-ing its volume by 45 percent over the course of the year.

“The depth of experience that Beech Street brings to our partnership with the agencies has been a decisive factor in our growing leadership in the market, and we are grateful for the rela-

tionship,” Ms. Huebscher said when the re-sults were announced in late February 2013.

“It has enabled us to execute on deals in ways that far exceed the expectations of our borrowers and helped us attract and retain a steady stream of new customers.”

TMO.0313.CS3.50.indd 34 2/28/13 7:31:02 PM

UPCOMING MORTGAGE OBSERVER ISSUES:

APRIL Multifamily Lending

3/14 3/18 3/26 OCTOBER Office Lending

9/12 9/16 9/24

MARCH 50 Most Important People in CRE Finance

2/21 2/25 3/5 SEPTEMBERHotel Lending

8/15 8/19 8/27

MAY Construction Financing

4/18 4/22 4/30 NOVEMBERTwenty on the Rise

10/17 10/21 10/29

JUNERetail Lending

5/16 5/20 5/28 DECMEBERPrivate Banking

11/14 11/18 11/26

Issue Reservations Materials Issue Date Issue Reservations Materials Issue Date

JULY - AUGUST Top Mezanine Lenders

6/13 6/17 6/25

The Mortgage Observer

The Mortgage Observer is a monthly glossy magazine inserted

into 12,000 copies of The Commercial Observer. With profiles

of industry giants, mortgage charts tracking the most active

lenders, and contributions from columnists Joshua Stein and

Sam Chandon, The Mortgage Observer is your go-to source

for the most comprehensive coverage of the Commercial real

estate finance industry.

The Insider’s Guide to the Commercial Real Estate Financial Industry

TMO.0213.CS3.COVER.indd 1 1/31/13 7:38:05 PM

Mortgage Observer WeeklyCompanion to The Mortgage Observer, providing industry

updates and news to 12,000 real estate insiders. Mortgage

Observer Weekly is a new weekly PDF newsletter emailed

directly to industry players every Friday morning.

To receive Mortgage Observer Weekly, please visit

commercialobserver.com/mortgage-observer-weekly-signup

For advertising information please contactBarbara Ginsburg Shapiro, Associate Publisher, at 212-407-9383, bshapiro@observer.com.

UPCOMING MORTGAGE OBSERVER ISSUES:

APRIL Multifamily Lending

3/14 3/18 3/26 OCTOBER Office Lending

9/12 9/16 9/24

MARCH 50 Most Important People in CRE Finance

2/21 2/25 3/5 SEPTEMBERHotel Lending

8/15 8/19 8/27

MAY Construction Financing

4/18 4/22 4/30 NOVEMBERTwenty on the Rise

10/17 10/21 10/29

JUNERetail Lending

5/16 5/20 5/28 DECMEBERPrivate Banking

11/14 11/18 11/26

Issue Reservations Materials Issue Date Issue Reservations Materials Issue Date

JULY - AUGUST Top Mezanine Lenders

6/13 6/17 6/25

The Mortgage Observer

The Mortgage Observer is a monthly glossy magazine inserted

into 12,000 copies of The Commercial Observer. With profiles

of industry giants, mortgage charts tracking the most active

lenders, and contributions from columnists Joshua Stein and

Sam Chandon, The Mortgage Observer is your go-to source

for the most comprehensive coverage of the Commercial real

estate finance industry.

The Insider’s Guide to the Commercial Real Estate Financial Industry

The Mortgage Observer is a monthly glossy magazine inserted

into 12,000 copies of The Commercial Observer. With profiles

state Financial Industry

TMO.0213.CS3.COVER.indd 1 1/31/13 7:38:05 PM

Mortgage Observer WeeklyCompanion to The Mortgage Observer, providing industry

updates and news to 12,000 real estate insiders. Mortgage

Observer Weekly is a new weekly PDF newsletter emailed

directly to industry players every Friday morning.

To receive Mortgage Observer Weekly, please visit

commercialobserver.com/mortgage-observer-weekly-signup

For advertising information please contactBarbara Ginsburg Shapiro, Associate Publisher, at 212-407-9383, bshapiro@observer.com.

Untitled-56 1 2/28/13 1:00:12 PM

36

50 MOST IMPORTANT PEOPLE / March 2013

Under Ms. Huebscher’s leadership, the firm has grown to provide a number of lending pro-grams, including Fannie Mae DUS, Fannie

Mae DUS Plus, Freddie Mac Program Plus and non-

agency sources.

42 ROGER COZZI

AllianceBernsteinMr. Cozzi, who le� his

CEO post at Gramercy Capital Corporation in mid-2012, is building out a real estate debt platform at AllianceBern-stein. A spokesperson for the investment fi rm confi rmed this, though details weren’t forthcoming. Other sources, however, tell The Mortgage Observer that Mr. Cozzi is, more specifi cally, starting up a debt fund there. To be sure, it will have reverberations through the industry, given his connections.

Mr. Cozzi has held positions at Fortress Investment Group, iStar Financial and Star-wood Mezzanine Investors.

43 KEN COHENHead of CMBS, UBS

Ken Cohen joined UBS in 2011 a� er a lengthy career at Lehman Brothers and a short stint at an independent advisory

company. Mr. Cohen was charged with taking UBS’s existing

CMBS business and expanding it. In addi-

tion to adding more personnel, Mr. Cohen’s group has secured more balance sheet

space from the bank to conduct more sec-ondary trading of CMBS products, done more origination deals and made loans on transitional assets. Last year, UBS put out $1.6 billion in balance sheet loans, with over half that amount in the New York market, according to Mr. Cohen. The bank ranked fourth in total loan contribution, he noted.

“Si� ing here today, the fi rm’s commit-ment to the business continues to be very strong,” Mr. Cohen told The Mortgage Observer. “UBS has undergone a fairly dramatic reorganization, and one of the lines of business the fi rm has stated it is fi rmly behind is the commercial real estate business.”

44 PAUL VANDERSLICEManaging Director, Citibank; President, Commercial Real Estate Finance Council

Mr. Vanderslice, co-head of Citibank’s CMBS Group and head of commercial mortgage distribution, was named presi-dent of the Commercial Real Estate Finance Council in June 2012. At Citi, Mr. Vanderslice is in charge of pricing and hedging of loans and oversees the bank’s new issue syndication. In his new role with the CRE Finance Council, Mr. Vanderslice has wrestled with Dodd-Frank’s impact on the commercial real estate fi nance market.

45 HUGH FRATER AND MARK MCCOOLCEO and Head of Servicing, Berkadia Commercial Mortgage

Hugh Frater saw his company, Berkadia Commercial Mortgage, take down $9.5 billion in commercial real estate financing last year.

Under Mr. Frater’s leadership, Berka-dia, which was formed in 2009, took back some of its market share in production in 2012, giving the company’s staff a fresh

outlook, the CEO said.On December 31, 2012, Berkadia

completed its acquisition of the multifamily sales and investment firm Hendricks & Partners, forming Hendricks-Berkadia, one of the top

five apartment sales advisors in the country.Berkadia’s Richmond, Va., office

closed a $1.5 billion multifamily portfolio deal last year through Freddie Mac for over 70 different properties, most in the metro D.C. area.

“We had the scale to fund that trans-action but also, importantly, the under-

writing resources to properly underwrite a portfolio that

size,” Mr. Frater told The Mortgage Observer.

Berkadia Commercial Mortgage, owned jointly by Berkshire Hathaway Inc.

and Leucadia National Cor-poration, ranked third out of

105 companies on the Mortgage Bankers Association’s year-end

survey for 2012, with $197.3 mil-

lion in total primary and master servicing mortgage loans. Berkadia’s average loan size in that category was $7 million.

“Everything I ac-complished in 2012 was accomplished by the company, the great team we have and the support of our shareholders,” Mr. Frater said.

46 THOMAS GUINANExecutive Vice President and Chief Lending Offi cer, Oritani Financial Corp.

As chief lending officer of Oritani, Thomas Guinan oversaw total assets of $2.8 billion as of December 31, 2012, up from $2.7 billion as of June 30, 2012, with a $2.1 billion outstanding balance of loans on average, according to a company filing.

Oritani, which specializes in multifam-ily and commercial real estate lending, said its loans increased by $189.3 million, or 9.5 percent, to $2.18 billion in the sec-ond half of 2012.

In October 2012, the bank provided a $27.8 million loan for the 400-rental-unit complex Island House on Roosevelt Is-land to finance its conversion into co-ops.

Mr. Guinan was promoted to his cur-rent positions after helping to grow Oritani’s commercial mortgage portfolio from under $200 million to over $600 million in 2007.

He declined to comment on his accom-plishments in 2012 and 2013.

REGULATORY ASIDEBarney Frank and Elizabeth Warren By Damian Ghiglio� y

Democrats Barney Frank and Elizabeth Warren have played influential roles in pruning the overgrown financial landscape—often to the benefit of borrowers and lenders buried in the weeds, and to the dismay of those who self-assess as growing at a healthy rate.

Mr. Frank, the retired Massachusetts representative and former chairman of the House Financial Services Committee, co-sponsored the Dodd–Frank Wall Street Reform and Con-sumer Protection Act, bringing new regulation to real estate lending and the financial industry as a whole.

“The biggest thing we did in the bill was risk-retention, requiring that at least 5 percent of the risk of loss stay with the securitizer,” Mr. Frank said in an interview with The Mortgage Observer. “I believe that’s a significant factor in restoring mar-ket discipline.”

The leading cause of the last housing and financial collapse was the movement in lending to 100 percent securitization, said the New Jersey native. “Thirty years ago or more, most loans came from people who were going to be paid back by the borrower, and

when you are going to be paid back by the borrower, you are care-ful,” he added.

Ms. Warren, Massachusetts’s senior senator, chaired the five-member Congressional Oversight Panel established to keep a close watch on the use of the Emergency Economic Stabilization Act of 2008, more commonly referred to as the “financial bailout.” The controversial law authorized the U.S. Treasury to spend up to $700 billion in taxpayer dollars to buy distressed mortgage-backed securities from banks and lend cash to struggling auto companies. Congress has so far ap-proved $350 billion of that money.

In her role on the bailout’s Oversight Panel, Ms. Warren examined monthly evaluations on foreclosure mitigation, consumer and small business lending, commercial real estate financing and investment, bank stress tests and the effective-ness of the Toxic Asset Relief Program.

She was an early proponent of the Consumer Financial Protection Bureau, created under Dodd-Frank after President Barack Obama signed the bill into law in July 2010.

Since then, Ms. Warren, a former Harvard Law School pro-fessor specializing in bankruptcy law, has spent her time going after the big banks in the interest of consumers.

“If [big financial institutions] can break the law and drag in

billions in profits and then turn around and settle, paying out of those profits, they don’t have much incentive to follow the law,” Ms. Warren said during a Senate Banking Committee hearing on Friday, February 15, in which she grilled a row of bank regulators and repeatedly asked about the last time they took a “Wall Street bank” to trial.

Though the playing field has started to shift for many banks, including large and small commercial real estate lenders, Mr. Frank noted that the financial landscape is still fertile and that the money trees are in bloom again. What’s more, the Dodd-Frank Act is still in its early stages.

“The business community was hoping that Obama would lose and that they could get rid of the bill,” he said. “Now that Obama has been re-elected, I think we are going to [see] the implementation speed up. The business community no longer has hopes of preventing Dodd-Frank, so now it has an interest in having it done efficiently.”

BREN

DAN

HO

FFM

AN/G

ETTY

IMAG

ES (W

ARRE

N &

FRA

NK)

TMO.0313.CS3.50.indd 36 2/28/13 7:31:33 PM

37

March 2013 / 50 MOST IMPORTANT PEOPLE

Up-to-the-minute news NOW for New York’s real estate market:

In New York, real estate is a spectator sport and an obsession. The Commercial Ob-server on Observer.com is the daily fix for the real estate-obsessed, providing access to the minute-by-minute accounts of the latest deals, the winners and losers, the stats, profiles and more.

www.commercialobserver.comCommercial Observer NOW

24 7|24 7|24 7||

47 DOUG MAZER, ROBERT ROSENBERGHead of Real Estate Capital Markets and Managing Director, Wells Fargo

Wells Fargo’s target for its CMBS busi-ness in 2013 is a whopping $7 billion, up from the $4.5 billion it did in 2012, and Messrs. Mazer and Rosenberg will be key to hi� ing that mark.

Mr. Mazer, head of real estate capital markets, originally joined as an originator for the Northeast Region in the infancy of Wells Fargo’s program. He took over the group in August of 2011. Mr. Rosenberg is a managing director who has worked on deals such as the $230 million that Wells Fargo provided for SL Green’s 100 Church Street.

“We are really focused on ramping up our large loan CMBS business,” Mr. Mazer said, when asked how the bank would drasti-

cally grow its CMBS business this year. “That’s the big opportunity for

not just us, but everybody in the market that has the size, the where-withal, the staff , the cojones to play in that space—and we certainly do.”

Recent deals include $600 mil-lion provided in partnership with

two other lenders for Macerich’s Queens Center, which, Mr. Mazer said,

the lenders split into thirds.

48 JOHN MANGINELLISenior Vice President Eastern Regional Manager, KeyBank

In 2012, John Manginelli’s team for Key-Bank Real Estate Capital’s Northeast region originated about $1.2 billion.

The bank is ranked among the top fi ve commercial and multifamily mortgage ser-

vicers, with $101.2 billion in U.S. master and primary servicing.

Mr. Manginelli manages an organization that provides loan programs for construction and interim fi nancing, as well as permanent lending and mez-

zanine and market-rate equity

products. Despite his focus on the Northeast, one of the most interesting deals of 2012 was a $50 million refi nancing of a fi ve-building port-folio in Alabama for a New York developer.

Prior to joining KeyBank in 2001, Mr. Manginelli spent 12 years at Summit Bank in Cranford, N.J., becoming senior vice president of commercial real estate.

49 PATRICIA GOLDSTEINVice Chairman and Head of Commercial Real Estate, Emigrant Bank

One of the few powerful women in the boys’ club of com-mercial real estate finance, Patricia Goldstein has been one of the most important players in the business since serving as the head of Citi-corp’s global real estate division in the 1990s. In the last 10 years, she has been in charge of credit decisions for the real estate group of Emigrant Bank as well as Emigrant’s other lending franchises. The bank has $12 billion of assets and $1 billion of real estate balance sheet loans. Since 2004, Emi-grant Realty Finance has closed approximately $5 billion of loans.

50 DANIEL HARRISExecutive Vice President and Chief Lending Offi cer, Dime Savings Bank of Williamsburgh

Daniel Harris has played a big role on the smaller side of commercial real estate lending at Dime Savings, which has a $3.4 billion loan portfolio. In 2012, the bank lent over $1 billion for new developments and refi nancing deals in

the New York area.“We’re a $4 billion bank, and our niche is

doing $1, $2, $3 million loans,” Mr. Harris told The Mortgage Observer. “Seven-ty-five percent of our business is New York City multifamily properties, and the balance is almost exclusively New

York City commercial real estate.”In January 2013, Dime Savings closed

a $10 million refi nancing deal for a residen-tial/offi ce/retail property in Chinatown.

“Ours is a great niche, because some of our competition would rather spent their time on $10, $12 and $15 million deals, which we’ll do as well, but I’d rather have a lot of good small loans than a few large loans,” said Mr. Harris. “That gives us be� er credit quality.”

TMO.0313.CS3.50.indd 37 2/28/13 7:31:57 PM

38

Q&A / March 2013

by Alessia PiroloThe Mortgage Observer: You’re retiring this month after over 30 years with Prudential. Have you spent your entire career there?

David Twardock: No, I had a two-year stint with Otis Elevator Company. I was an elevator salesman. The joke is that I went from one up-and-down business to another.

How did you move to real estate?I was working on my MBA at the University

of Chicago, because I wanted to transition into the real estate business. Prudential came in and interviewed [me] on campus in 1982. I was fortunate enough to get hired, thinking that I was going to work my way into the development side of Prudential. Prudential was one of the biggest real estate developers, if not the biggest, in the country in the early 1980s.

But you didn’t end up in development?I never got that spot. Prudential had been out of

the mortgage business, because interest rates were so high from 1979 until 1984. I spent the first couple of years buying buildings, selling buildings and managing assets. Then, in 1984, they decided they wanted to get back in the commercial mortgage business and they drafted me to be in that business. I was not happy with that. I wanted to be building buildings. I didn’t want to be financing them. It turned out to be the best thing that could have ever happened to me. It was a brand-new organization, nobody had had any experience doing this for five years and it gave me an opportunity to really step into a business area with Prudential’s brand and financial backing and do deals, as a really young guy. I was 27 years old and I was doing major deals in Chicago.

How did you move up within Prudential?I ran the New York office from 1986 to 1989. Then

they asked me to move to corporate headquarters in Newark and I started running about a third

of the country for our lending operations. I had always wanted to get back to Chicago, and they sent me back in 1992. But three years later they said, “We need you back in New Jersey, and you’re going to be running a major business.” That was in the mid-’90s, and the first assignment that I had when I got back to New Jersey was to downsize our real estate operation by about 50 percent. It was really difficult.

Was it the most difficult time in your career?Yes, that was the most difficult. Just because of

the impact on people. It was half of the organization. Hundreds of people. But after that, the business sort of re-established itself and I was given the job of running the real estate equity business for Prudential’s on-book portfolio. We had about $5.5 billion of equities. At the time, John Strangfeld—who is now our chairman—was my boss, and we came up with a strategy to significantly reduce those holdings.

Anything particularly creative that you did? We were one of the original investors in Strategic

Hotels, which is now a major hotel company. We took our assets and, together with Goldman Sachs, we formed that company. We sold to Boston Properties some major assets—the Prudential Center in Boston, the Embarcadero Center in San Francisco, two of the sites at Times Square that they ultimately developed. We took back stock positions in Boston Properties as part of that. We sold our industrial portfolio to Meridian Industrial Trust, for a nice sale. We took back stock. Meridian later was merged into ProLogis and we got another nice return on stock after we sold it.

Can you talk about your role as a head of Prudential Mortgage Capital Company?

They brought me in to run PMCC in 1998. At the time, PMCC was an investment division, like a lot of life companies have. We were investing Prudential’s money, and we had the idea of trying to commercialize the business. And so we got

capital; we formed a securitization conduit. We bought a company called WMF in 2000, which gave us a Fannie Mae DUS license and FHA and Ginnie Mae license. We consolidated all that and formed a servicing business in Dallas, which was new for us. The net of all that was, through the 2000s, we had more pockets of capital.

What was the difference between Prudential’s CMBS business pre- and post-2007?

We stopped the CMBS business in 2007. We’ve now formed a venture with Perella Weinberg [Partners] called Liberty Island [Group] that does that business, but in a different way. Before 2007, we did everything on our balance sheet. We originated it and we put it on our balance sheet. We hedged and we contributed to a securitization. It was completely a balance sheet-based business. With Perella Weinberg, they provide most of the capital for that venture, and it’s not on our balance sheet. We make a loan that goes on the venture’s balance sheet. We have a small economic stake in the venture, but much smaller, a fraction than what we had before. Our primary role is to be the operating partner for the venture. So we originate, we have the securitization team, we get paid more on fees and on the success of the venture that we do on any balance sheet business. This takes the risk off the table.

What are your plans after retiring?At the end of March, it will be my last day in the

office. I’m going to take six months and enjoy my sailing and my golfing and my outdoor activities, and then I’m not going to take another job, I’m just going to maybe do some board work and advisory work. But I’m going to own my own time, more than I do now.

David Twardock

David TwardockPrudential Mortgage Capital CompanyThe Mortgage Observer caught up with outgoing PMCC President David Twardock at last month’s Mortgage Bankers Association in San Diego. We covered the up-and-down nature of the business as well as his post-PMCC plans.

TMO.0313.CS3.Q+A.indd 38 2/28/13 7:53:41 PM

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"!"#$%&'#(#)*#+,-.#

# # # ###/012,34#'5643789##

################################&3:#;67.#<3,4#=95,53#'>??05#

#############'5,53#6@#523#A6??3710,4#<3,4#=95,53BC>5466.#@67#D"!E#

############################$3F-39F,GH#/,712#IH#D"!EBJK""#L/#56#!#M/H#

###################N7,F>,53#A3-537H#A05G#O-0P37905G#6@#&3:#;67.H#EIQ#R0@52#LP3->3H#&;A#

#

! !!!!!!!!!!!

!

!

!

! ! ! ! !

! !!!!!!!!!!!!!!!!!!!!!!!!!!

! ! ! !!!!!!!

!!!!!!!!!!!!!!!!"""#$%&'()'*+(+'*,--.+#/0-! !

###############'123F>43#@67#523#3P3-5K#

SKE"#L/BJKE"#L/K#<3T0957,506-#U#V73,.@,95##

JKE"#L/BWKE"L/K#A=C#U#ACC#X03:#6-#523#

?,7.35B$2373#,73#:3#23,F3F#0-#D"!EY#

WKZ"#L/B!"KZ"#L/K#)23#<35,04#/,7.35[4,13#

0-#523#73T06-K#C:-37H#*3P346[37H#<35,0437H#

<6>-F5,V43#

!"KKZ"#L/B!!K""#L/K#A6@@33#+73,.#

!!K""#L/#B#!DK""#&66-B=P37G6-3#:,-59#56#

6:-#16??3710,4#73,4#395,53K#$2689#V>G0-TH#

93440-TY#'6>7139#6@#F3V5#U#3\>05G#@67#

16??3710,4#73,4#395,53#

!DK""#M/B!K""#M/K#]65349#0-P,F3#523#

73T06-K#C:-379H#C[37,5679H#LFP09679#U#

A,[05,4#[76P0F379#

R67#,FF0506-,4#0-@67?,506-#P0905#523#:3V9053#

67#1,44K#####!!!"#$%&'(&)*'*&)+,,-*"./,####

##########/012,34#'56437H#IZIBZZDB"S!S###

?956437^?,F096-73,45G1,[05,4_16?#

!

!!!!!!!!!!!!!!!!!!!!!!!!!!

!!

!

!!!!!!!!!!!!!!!!! !

!

!!!!! !

!!!!!!!!! !

!

!! !!!!!!! !

!

#

A=C#U#ACC89#X03:#6-#523#/,7.35B$2373#,73#:3#23,F3F#0-#D"!EY##

`,?39#A,7[3-537H#'7_#=XM#U#H#A203@#a3-F0-T#C@@0137H#&3:#;67.#A6??>-05G#+,-.#

<,4[2#]37b.,H#A2,07?,-#U#A=CH#/370F0,-#A,[05,4#N76>[H#aaA#

`,?39#c>2-H#M7390F3-5H#&3:?,7.#N7>VV#c-0T25#R7,-.#

<012,7F#/,1.H#&6752#L?3701,-#A=CH#L<=L#M76[375G#M,75-379#

L752>7#/07,-53H#M70-10[,4#U#M7390F3-5_#)70B'5,53#<3T06-H#LP096-#;6>-T#

'1655#<312437H#A2,07?,-#U#A=CH#<d<#<3,45G#

`,G#'2,2H#A203@#=e31>50P3#C@@0137H#]3792,#]69[05,405G#)7>95#

`693[2#'055H#A2,07?,-#U#A=CH#)267#=\>05039#

'53P3-#$05.6@@H#A2,07?,-##U#A=CH#)23#$05.6@@#N76>[#

C@37#;,7F3-0H#A2,07?,-#U#A6BA=CH#'56-323-T3#M,75-379##

)23#<35,04#/,7.35[4,13#0-#523#73T06-K#C:-37H#*3P346[37H#<35,0437H#<6>-F5,V43#

=F#+4>?3-@34FH#A2,07?,-#U#A=CH#+4>?3-@34F#*3P346[?3-5#N76>[H#a)*##

)26?,9#A,[>56H#M7390F3-5H#=\>05G#C-3#%-1_#

A2709#A6-46-H#=XM#U#ACCH#L1,F0,#<3,45G#)7>95#

a39537#M357,11,H#A2,077?,-#U#A=CH#)70,-T43#=\>05039##

+7>13#'12,-b37H#M7390F3-5H#A=C#U#*0731567H#A3F,7#<3,45G#)7>95#%-1_#

<012,7F#$,T?,-H#/,-,T0-T#M,75-37#U#R6>-F37H#/,F096-#A,[05,4#

=P37G6-3#:,-59#56#6:-#16??3710,4#73,4#395,53K#$2689#+>G0-TH#93440-TY#'6>7139#6@#F3V5#U#

3\>05G#@67#16??3710,4#73,4#395,53#

A270956[237#L4V,-393#M7390F3-5H#L4V,-393#C7T,-0b,506-###

<6G#A20-H#<3T06-,4#*0731567H#)*#+,-.#

M3537#*8L71GH#<3T06-,4#M7390F3-5H#&3:#;67.#A05GH#/#U#)#+,-.#

/34099,#R,77344H#/,-,T0-T#*0731567H#M7>F3-50,4#/675T,T3#A,[05,4##

`63#/1/044,-H#A=CH#**N#

/0.0#&,@5,40H#A2,07?,-#U#A=CH#)23#&,@5,40#N76>[##

`,96-#M3-F37T095H#]3,F##&67523,95#<3T06-H#A2,93#A6??3710,4#)37?#a3-F0-TH#`M#/67T,-#

A2,93#

*,P0F#<0F0-0H#/,-,T0-T#*0731567H#H#A,-G6-#A,[05,4#<3,45G#LFP09679##

`67F,-#'46-3H#A2,07?,-#U#A=CH#],7V67#N76>[#%-537-,506-,4#

*,P0F#X6-#'[731.3493-H#M7390F3-5H#)644#+7652379#A05G#a0P0-T#

N73T#$,4bH#/T7#*0731567H#&,506-,4#]3,F#6@#=\>05G#%-P395?3-59H#&6752:39537-#/>5>,4#

%-P395?3-5#/,-,T3?3-5#

`692>,#f3T3-H#A6BR6>-F37H#/,-,T0-T#/3?V37H#/,F096-#<3,45G#A,[05,4#

#

]65349#%-P,F3#523#73T06-K#C:-379H#C[37,5679H#LFP09679#U#A,[05,4#M76P0F379#

`,96-#A2730-H#*0731567Ba6FT0-T#U#N,?0-TH#A73F05#LT701643#A67[67,53#U#%-P395?3-5#+,-.#

+7,F#c67?,-H#A6BM7390F3-5H#c67?,-#A6??>-05039#

`,96-#a0[031H#N76>[##/,-,T37H#/#U#)#+,-.##

/,5523:#a0P0,-H#'3-067#X013#M7390F3-5#U#A203@#%-P395?3-5#C@@0137H#'GF344#N76>[H#a)*_#

$044#CV30FH#M7390F3-5#U#A=CH#N3?0-0#<3,4#=95,53#LFP09679H#aaA#

%,-#<309-37H#M7390F3-5##U#R6>-F37H##)]=##CO)#&;A#

#

#######################################:::_-G73,4395,539>??05_16?##

#

########################X0905#523#:3V9053#56#73T09537#@67#523#9G?[690>?##

! !

!

Untitled-4 1 2/25/13 5:21:44 PM

40

The Sked / March 2013

The Sked: March

ARM

END

NIM

ANI/A

FP/G

ETTY

IMAG

ES; P

HOT

O B

Y M

IKE

EHRM

ANN

/GET

TY IM

AGES

13-14Is distressed debt stressing you out? Trying to

sort out where opportunities lie? Come to this summit to learn about bridge and rescue lending, tranche warfare, exit strategies and more.

Distressed Debt Summit, New York Athletics Club, 180 Central Park South. Visit www.crefc.org or contact Alex Ong at (202) 448-0850 or aong@crefc.org for more information.

14-15Size up and head down for IMN’s fourth annual

Financial Institutions Special Asset Conference on Real Estate Workouts. If only these workouts increased muscle!

IMN Bank & Financial Institutions Special Asset Executive Conference on Real Estate Workouts, Conrad New York, 102 North End Avenue. Visit www.imn.org for more information.

17-19Mosey on down to the Lone Star State for this

Crittenden Multifamily Conference and fi nd out if the state’s famed largesse extends past hair and steaks to deal volume. Sessions over the three-day conference include “Exploring Joint Venture Equity for Multifamily Transactions” and the all-encompassing-sounding “Capital Markets,” moderated by Mesa West Capital’s Steve Fried.

Crittenden Multifamily Conference, The Ritz-Carlton, 2121 McKinney Avenue, Dallas, Texas. Visit www.crittendenmultifamily.com for more information.

19You can never be too young to worry about debt

fi nance—as evidenced by this Real Estate Lenders Association NYC Young Members event. Attendees

will tackle the di� erences between balance sheet, CMBS and insurance lenders—with a networking event to follow at the nearby Westin Hotel.

NYC Young Members Present: Debt Finance Educational Seminar—A Discussion on the Di� erences Between Balance Sheet, CMBS and Insurance Lenders, Wells Fargo Learning & Events Center, Room 105, 150 East 42nd Street, 4pm to 6pm. Visit www.rela.org for more information.

25Rest assured, ULI’s workshop on private equity

capital will be easier to understand and navigate than the streets of Washington, D.C.

Private Equity Capital: Understanding and Navigating the Options, 1025 Thomas Je� erson Street NW, Suite 500, Washington, D.C., 8am to 5pm Visit www.uli.org or contact David Mulvihill at dmulvihill@uli.org for more information.

IMN Bank & Financial Institutions Special Asset Executive Conference on Real Estate Workouts, Conrad New York, 102 North End Avenue. Visit www.

TMO.0313.CS3.TheSked.indd 40 2/28/13 7:54:28 PM

Maryland PortfolioVarious Locations, MD5,517-Unit Multifamily Portfolio

$371,000,000Agency Financing

350 Park AvenueNew York, NY

$300,000,000Balance Sheet Financing

Columbus SquareNew York, NY500,000 SF Retail Portfolio

$280,000,000Balance Sheet Financing

568 BroadwayNew York, NY

$200,000,000Conduit Financing

East 65th Street New York, NY

$140,000,000Conduit Financing

HarborplaceBaltimore, MD

$76,000,000Conduit Financing

200 Public SquareCleveland, OH

$127,000,000Conduit Financing

Falcon PortfolioMN, TX, NC and FL1,527-

$85,000,000Balance Sheet Financing

Relationship Driven. Execution Focused.

South LaSalle StreetChicago, IL

$75,000,000Conduit Financing

Harrison StationHarrison, NJ

$49,950,000Agency Financing

Place St. CharlesNew Orleans, LA

$70,000,000Life Insurance Co. Financing

Playa del Oro WestPlaya del Rey, CA

$67,000,000Construction Financing

Commercial Mortgage Observer - March 2013 - V2.indd 1 2/26/13 4:36 PMUntitled-28 1 2/27/13 12:00:12 PM

ONE FIRM

$275,000,000 Debt

Multifamily New York

$141,000,000 Debt

Multifamily Portfolio New York

$34,850,000 Debt

Multifamily California

$95,000,000 Debt

Condominium Development New York

$52,500,000 Debt

Multifamily & Retail New York

$37,050,000 Debt

Multifamily Pennsylvania

WWW.ACKMANZIFF.COM

Untitled-28 1 2/27/13 11:59:08 AM