Remington Capital – Joel A. Nathanson

It has been a tough couple years for the Commercial Mortgage Backed Securities Market (CMBS), but it’s exciting news that the transaction volume is starting to pick up. Due to Treasury-bill yields being at all time lows and many large institutional investor’s searching for products for their fixed income divisions, its only obviously that the market will need to increase transaction volume to meeting the every growing demand. At one point, CMBS represented 1/3 all commercial lending and is a great way to provide liquidity in the ever so tight capital markets.

According to the Mortgage Banker’s Association, Multifamily originations in the first quarter rose 12 percent from a year earlier. Although Originations fell 26 percent from Q4 2009, many experts believe this is a firm indication of the direction of the commercial marketplace. Which is up. As banks become more comfortable with loaning funds, a commercial feeding frenzy will ensue. There will be a rush towards both conventional and alternative sources of capital, like Remington. Although the volume of loans remains low, as a commercial financing professional, I am confident that the commercial marketplace is headed in the right direction.

It is no surprise that the aggressive commercial lending over the last 10 years is the main reason for bank failure. Its stated in a recent article that 140 banks failed in 09′ with over $170 Billion in assets. Please see the entire article below.

See Full Article

Banks and commercial lenders will continue the deleveraging trend throughout 2010. The trend is starting to be seen in secondary and tertiary markets hardest hit with increasing vacancies and decreased cash-flow.

The CMBS market shows a 4.5% default rate on their entire portfolio, with lodging at 11%, and multifamily at 7%. CMBS  transactions that are in risk of default are being turned over to special servicers to ultimately make a decision to either do a work-out or foreclose and auction off assets. The CMBS transactions will be the hardest to recapitalize due to the amount of red tape that borrowers will need to go through.

The good news is that Remington has funds that are being deployed to recapitalize these types of transactions. Please give me a call and let’s discuss.  In addition to our expert advisory services, we are your best access to commercial capital.

Thank you – Joel Nathanson, Remington

The maturity of typical mezzanine loans tends to range from six to ten years, with principal payments commonly deferred until senior debt is retired. And while, by its nature, mezzanine financing has no hard and fast terms or structures, there are a few terms commonly used in commercial real estate transactions. The most common type used with stabilized properties is straight debt, where the lender receives no equity and has no management participation. On the other hand, when looking to increase LTV to 90%, borrowers may have to give up some cash flow equity and upside potential to lenders through the use of a participating note. With preferred equity, owners give up some control and more equity than with a participating note.

Because of the complexity of terms, costs and suitability of mezzanine and other forms of financing, real estate owners, developers and brokers across the country have come to rely on the experts at Remington for their expert advisory services and ready access to its well-funded global network of public and private sources of capital.

Remington professionals are equally adept at securing financing for virtually any general business purpose, with or without the involvement of real estate, including loans and equity for business expansion, working capital, operating capital, investment capital, etc.  Whatever financing you need, the professionals at Remington can help you get it.

Call me and let’s discuss whether this approach is a good fit for you.  Thank you, Joel Nathanson.

The financing professionals at Remington provide each and every client with unmatched market expertise, including top-notch advisory services capable of successfully restructuring even the most complex transactions. Importantly, our professionals have unsurpassed access to a well-funded network of public and private capital sources representing a global capability that ranges across the capital stack for minimum transaction amounts of  $500,000 in the U.S. and $5 million abroad.

Available Programs at Remington

Senior Debt

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Mezzanine Debt

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Aggregate Leverage up to 85%
• Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Preferred Equity

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Equity

• All Property Types and Corporate Purposes
• $500,000 minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Joint Venture Financing

• All Property Types and Corporate Purposes
• $500,000 minimum in the US and $5,000,000 Internationally
• Active Investment
• Acquisition, Development, Construction, Construction to Permanent, Rehabilitation, Bridge, Refinance

Remington Arranges Specialized Financing For The Following Property Types and Business Purposes:

• Land
• Industrial
• Multifamily
• Office
• Retail
• Mixed Use
• Hospitality
• Medical Office
• Healthcare Facilities
• Senior Housing
• Student Housing
• Special Purpose
• Restaurant
• Self Storage
• Manufactured Home Parks
• Business Working Capital
• Business Investment Capital
• Entertainment & Multimedia
• Franchises
• Bridge Loans
• Business Loans without Real Estate
• Hard Money