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SCOTSMAN AN GUIDE

The Leading Resource for Mortgage Originators

39,000 + subscribers FEBRUARY 2008

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commercial edition

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Articles VOLUME 8

COMMERCIAL EDITION

ISSUE 1

JANUARY 2008

DEPARTMENTS 12 __ From the Editor, Q&A, Spotlight: Detroit and more

19 LEAD ARTICLE 19___ When Leverage is a Thing

of Beauty By Craig Grella, Cornerstone Funding Services Inc. While you should always refer clients to their financial advisers for specific counsel, you can explain to them how different levels of leverage could affect their investment return. It’s insight they might thank you for.

ARTICLES 22 __ A Conduit to the Future By James Wood, InvestWood Capital LLC, and Jonathan Campbell, Texas Capital Bank As the conduit-lending environment changes in 2008, mortgage brokers and bankers will play a pivotal role in educating borrowers on lenders’ new expectations.

26 __ Gas Station Funding: Know the Answers By Mike Lamb, Petroleum and Franchise Capital Gas station and convenience-store operators face multiple challenges in financing their growth. Often, the biggest challenge is finding a lending partner that understands their business. Help these clients find the right specialized lender.

28 __ Got SBA? By Harlan A. Friedman, Lightning Commercial Funding Inc. Offering SBA loans to your small-business-owner clients can help them with debt-consolidation and property purchases. It may also boost your own business.

50 __ Junior Debt Moves Up in the World By Kyle Early, Forman Capital It may not be the traditional way to work, but as the use and availability of subordinated-debt financing becomes more common, it is wise to understand how lenders underwrite and structure these transactions.

54 __ New to Commercial? Get in the Know By Jim Levie, NonSuch Consultants Inc. If you’re getting started in the commercial mortgage market, learn how some key elements of the loan process differ from the residential process. It’s just good business.

74 __ Work Better in Agreement By Andrew Bogdanoff, Remington Financial Group Cultivate your relationship with lenders, and enhance your experience throughout the funding process.

22

78 __ Factoring the Advantages By Duane H. Marchant, abcCapitalFUNDING Co. Explain the benefits of factoring to your business-owner clients. Such financing can meet the working-capital needs of borrowers in need of quick cash.

86 __ Be the Lender’s Eyes

34 __ Get in the Game By Fred Hollister and Nathan LaBudde Prepare for a successful year by drafting a solid and realistic game plan.

36 __ A Private Matter By John Arno, Park Hill Lending As institutional lenders tighten their lending parameters, commercial brokers are turning to private-money lenders to fund their clients’ deals.

46 __ Above and Beyond with Underwriting By Courtney Sapin, Crest Lending Group Inc. When you take the time to understand underwriting thoroughly, you enhance your reputation among lenders. This might mean more deals for you.

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By Richard H. Zahm, Second Angel Bancorp Commercial lending decisions are all about the property. In order to create the best mortgage applications possible, become familiar with properties through site inspections.

88 __ Ask the Right Questions By Mike Boggiano, Silver Hill Financial LLC No matter what type of small commercial property you’re working on, take the time to gather the right information from your borrowers.

Correction: Donna Burtch’s title, executive assistant to the vice chairman, was not listed correctly on Page 14 of December’s commercial edition.


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Departments

In the Past Month News from the industry and abroad

Multifamily-housing starts gain as single-family construction lags

By Tony Stasiek, editor

Yes, every year begins with uncertainty. And as we enter 2008’s second month, commercial brokers should gain a better understanding of which markets are set to roll and which are raising red flags. Hot on the heels of President Bush signing bills extending the Terrorism Risk Insurance Act for seven years and increasing high-cost factors for Federal Housing Administration multifamily-loan limits comes the Mortgage Bankers Association’s (MBA) Commercial Real Estate Finance (CREF)/Multifamily Housing Convention and Expo (Preview: Page 86). As one of the year’s first large-scale mortgage-industry events, CREF likely will be abuzz with handshaking, deal-making and chin-scratching. Will the multifamily sector see bleedover from the nonprime crunch? Or will status quo reign? According to Reis Inc., multifamily rents have increased steadily since 2004, while multifamily-vacancy rates have hovered just below 6 percent since early 2005.

Although November’s single-family construction activity fell to its lowest level in more than 16 years, multifamily starts did see growth. According to the U.S. Commerce Department, multifamily construction grew 4.4 percent in November to an annual rate of 332,000 units. Overall, construction of homes and apartments dropped 3.7 percent, while application activity for overall building permits fell 1.5 percent.

Construction spending shows slight increase in November WASHINGTON, D.C. — U.S. construction spending increased 0.1 percent in November on government outlays, but homebuilding spending slid 2.5 percent, the U.S. Commerce Department said.

The November figures showed home-construction spending fell for a record 21st-straight month and was down 17.5 percent from a year earlier, the department said.

“Getting the word out that the fundamentals remain solid — and that there is not any kind of consistent break in the value stream of real estate at this point — is a great way to shore up the fact that this is not a market crisis,” said Jan Sternin, MBA’s vice president of commercial, multifamily, to Scotsman Guide’s Melinda Young in late 2007.

Overall construction spending was down 0.1 percent from November 2006, the department said.

REITS see down year in 2007, with questions abounding in ’08

Regional markets — especially those in “sand states,” such as Arizona and Florida — likely will continue to be problematic, Sternin said. But as she adds in our Q&A (Page 14), multifamily lending and investment could see some bounce-back by the end of the year. And deals sealed at CREF could be their catalyst.

The rally in real estate investment trusts (REITs) ended in 2007 as turbulence in the credit markets rattled the confidence of commercial investors and effectively halted the frenetic pace of REIT privatizations. Th rough early December, the REIT composite index compiled by the National Association of Real Estate Investment Trusts (NAREIT) had a negative return of 11.39 percent. The index of equity REITs, which own commercial property and constitute the bulk of the market, has fallen 8.63 percent.

Unable to make it out to CREF? Follow the action through Scotsman Guide’s coverage at scotsmanguide.com/cref2008. Watch for updates in our monthly e-newsletter (subscribe: scotsmanguide.com/newsletter), as well.

For more than seven years — from November 1999 through January 2007 — REIT shares soared in value, providing investors average annualized returns of 23.6 percent, according to NAREIT. tony@scotsmanguide.com

Analysts attribute the falloff to financial institutions’ reluctance to provide loans for buyouts in light of the credit squeeze.

Loan Post Snapshot

from scotsmanguide.com/loanpost

What loans are attracting lender replies on Scotsman Guide’s Loan Post? December’s stats: 17%

Consumer confidence experiences growth after 3 months of losses

Top commercial property types 1. 2. 3. 4. 5.

Multifamily: 98.7% with responses Office: 95.6% Retail: 92.5% Mixed-use: 92.2% Land: 83.7%

52%

WASHINGTON, D.C. — A gauge of U.S. consumer con-

fidence rebounded slightly in December after dropping for three consecutive months, researchers said.

31%

The New York-based Conference Board’s index increased to 88.6 in December from 87.3 in November.

Top commercial loan purposes 1. 2. 3. 4. 5.

“REITs have been in a bear market pretty much all year,” says Ralph L. Block, the author of Investing in REITs and publisher of The Essential REIT newsletter. “I think the key to forecasting what REIT stocks do in 2008 is determining whether the U.S. is going into a recession.”

Purchase: 94.2% Acquisition and development: 94% Refi: cashout: 93.8% Refi: rate and term: 93.3% Construction loan: 86%

COMMERCIAL LOAN AMOUNT

■ ■ ■

$1 million or less $1 million to $5 million $5 million or more

The private research institute polls 5,000 households every month about their estimation of the country’s current economic situation and their expectations in coming months. Compiled from Scotsman Guide wire services and staff reports

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OFFICE | INDUSTRIAL/WAREHOUSE | RETAIL | AUTOMOTIVE (NO GAS) | MIXED USE | MULTIFAMILY | BUSINESS CONDO | HOTEL

AS A BROKER, you know financing can be challenging when your clients want to buy or upgrade their business spaces. That’s why you need a partner with unmatched expertise, a wide range of options and the backing of a global finance leader. Lehman Brothers SBF is that partner. We have all the resources you need to get the job done, including: • Owner-user conventional loans up to 90% LTV • Competitive SBA 504 financing up to 90% LTV • Cash-out refinancing up to 75% LTV • Alt-A stated income loans (no tax returns or financial statements)

• Loans up to $5 million

• Multifamily / apartment loans up to 80% LTV

• 30-year term (fixed and fully amortized)

• Investor loans up to 80% LTV

• Hospitality loans - purchase or refinance

• Rate locks available

Let’s work together to see where we can help you take your clients. Call us at 888.222.9427 or visit lehmansbf.com.

HE NEEDS HIS SPACE All loans are subject to credit and property approval. Programs, rates, terms are subject to change without notice. Other restrictions apply. © 2008 Lehman Brothers Bank, FSB. All Rights Reserved.


Departments

Inside Small-Balance

By Melinda Young

TAMPA, FLA.

As a port city, Tampa has built-in economic drivers that seem to be moving in the right direction. Cruise-passenger traffic increased 12.5 percent in 2006 over 2005 to more than 910,000 people, according to the Tampa Bay Convention and Visitors Bureau. Visitor expenditures also increased to more than $3.2 billion during the same time.

What the Locals Say

In addition, the Port of Tampa is Florida’s largest seaport in terms of cargo volume, moving almost 50 million tons of cargo each year. Meanwhile, the port continues to expand operations, in part because of the direct routes it provides to Mexico, Latin America and the Caribbean.

“What’s driving the economy worldwide is imports and exports. In Tampa, especially with the expansion of the Panama Canal, we’ll have more products coming from Asia into Florida. I think international trade is an important part of our future, just as it has been for Los Angeles and New York.” — Ray Sandelli, senior managing director - Tampa, CB Richard Ellis

It also doesn’t hurt that Tampa is part of a state attracting more new businesses and experiencing population growth. Florida ranked fi fth in the 2007 Tax Foundation study of states’ business-tax climates. Tampa and neighboring St. Petersburg were Bizjournals’ 14th-best market for small businesses nationwide in 2007. And Central Florida has been expected to add 2 million residents between 2001 and 2030 With these factors in mind, developers are gearing up. Construction is on the rise in all commercial property types in the southern city.

Office: ■ Asking: $21.37 per square foot ■ Effective: $18.50 per square foot

Amid the capital-markets turmoil, lenders and brokers attending the Mortgage Brokers Forum on Small-Balance Commercial Real Estate Lending in early December voiced concerns about liquidity, spreads and underwriting — all of which have been turned upside down lately. Still, I don’t think anyone there shared one ounce of conviction that the small-balance commercial loan space wasn’t still a great place to do business. As I suggested at the forum, the market’s large size, fragmentation and solid loan performance persist. From the lenders’ perspective, the landscape also has opened up substantially, with as many as five major originators having vacated the space in the past six months as part of the nonprime fallout. Of course, this is unfortunate for the industry professionals involved. But it also creates opportunities for other lenders to pick up substantial market share. That said, because of the link between the residential and small-balance commercial sectors, the small-balance market will likely get worse before it gets better. Part of the reason is that home sales and prices are falling at a record pace because of tremendous oversupply. According to research that I presented at the forum, small commercial property acquisitions follow the direction of housing sales more closely than any other economic factor, including employment trends or population growth. Consequently, some of the previously explosive housing markets that are now experiencing severe corrections also are taking it on the chin in terms of overall smallbalance commercial loan originations.

Loan Volume: 2nd Quarter 2006 to 2Q ’07

San Diego County

-24.9%

Miami-Dade County -20.7%

Apartment: Asking: $829 per unit ■ Effective: $786 per unit ■ Industrial: $7.28 per square foot

Orange County, Calif. Cook County, Ill.

-17.7%

Median household income: $39,602 Median household income in 2000: $34,415 ■ U.S.: $48,451 ■

-12.5% -5.6%

Median age: 35.1 years ■ Median age in 2000: 34.7 years ■ U.S.: 36.4 years

Under Construction

-30%

-25%

-20%

-15%

Los Angeles County Maricopa County, Ariz.

-10%

-5%

0%

Office: 350,000 square feet

Inflation (MSA Consumer Price Index, 1st half 2007): 5.2 percent ■ Infl ation (1st half 2006): 4.5 percent ■ U.S. (June 2007): 0.2 percent

Retail: 271,000 square feet

Source: Boxwood Means Inc.

Apartment (projected for 2007): 900 units Industrial: 2.6 million square feet

Unemployment: 4.3 percent Unemployment in October 2006: 3 percent ■ U.S.: 4.7 percent ■

Résumé Top employers: Hillsborough County Public Schools, Verizon, MacDill Air Force Base, University of South Florida, Hillsborough County Government

Absorption

Port of Tampa is closest full-service U.S. port to the Panama Canal

Net office: -35,000 square feet Net retail: 169,000 square feet

Second-largest tech hub in a state that ranks fourth in hightech-company volume

Apartment: -488 units Net industrial: 1.2 million square feet

Tampa Bay Performing Arts Center is South’s largest such facility

Vacancy

As the above graph shows, some of the top U.S. counties in terms of small-balance volume suffered significant declines in loan volume from second quarter 2006 to the second quarter of ’07. The Miami, Los Angeles and to a lesser extent, Phoenix areas are now pummeled by overbuilt-housing conditions. Clearly, the small-balance growth engine has been slowing. But it’s still a large and attractive marketplace despite current headwinds.

2nd-highest condo sales in state (behind Fort Lauderdale) in 2007

Office: 11.7 percent Retail: 6.7 percent Apartment: 6.5 percent

Sources: CB Richard Ellis, Marcus & Millichap, Reis Inc., U.S. Census Bureau, U.S. Department of Labor

Industrial: 3.7 percent

Melinda Young is an associate editor at Scotsman Guide. Reach her at (800) 297-6061 or melinda@scotsmanguide.com.

|

-25%

Retail: ■ Asking: $15.58 per square foot ■ Effective: $14.10 per square foot

Average commute: 23.3 minutes ■ Average commute in 2000: 22.8 minutes ■ U.S: 25 minutes

Scotsman Guide

By Randy Fuchs, principal and co-founder, Boxwood Means Inc.

Rents/Leases

Vitals Population: 332,888 ■ Population in 2000: 303,447 ■ Rank (U.S.): 55th largest ■ Metropolitan-area population: 2.7 million ■ Metropolitan-area rank (U.S.): 19th largest

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Housing market’s impact

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Randy Fuchs, a principal and co-founder of real estate research and consulting firm Boxwood Means Inc., writes a monthly column on smallbalance commercial loans for Scotsman Guide. Boxwood provides lenders with strategic mortgage reports, direct-mail lists, portfolio analytics and other services based on its proprietary database of small-balance transactions. E-mail randy.fuchs@ boxwoodmeans.com.


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Lead Article

By Craig Grellla, co o-founder, Corne ersttone Funding g Serr vices Inc.

ach investment comes with a certain return. For you and your clients, the goal is for those returns to be positive. In times of tightening credit, however, loans seem harder to obtain. And investors who do obtain bank loans must come to the table with more equity than in recent years. As a service to your clients, you might consider showing them how different levels of leverage can affect their investment return. It’s a fairly simple concept, but it never hurts to explain it to them or remind them of some basic principles. Sometimes, this explanation can enlighten even the most-hardened investors. Co tin Con t ued ti ed on Pa P ge 20 2

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Articles

A Conduit to the Future What’s in store for conduit loans in 2008, and what does it mean for your clients? By James Wood, president, InvestWood Capital LLC, and Jonathan Campbell, banking officer, Texas Capital Bank

T

his year looks bright for

commercial mortgage brokers and bankers. Nearly $45 billion in refinancings are reported to be coming due in commercial-mortgage-backed-securities (CMBS) holdings alone. Approximately $100 billion in balloon maturities are set to roll between now and 2010, an increase from approximately $30 billion between 2005 and ’07. Much of the debt that will mature this year was made 10 years ago. After the Asian and Russian financial crises in 1997 and ’98, domestic investment flooded into commodities and real estate. These refinancings, however, will meet increased lender scrutiny and increased underwriting standards. Despite more competition from insurance companies and Fannie Mae, conduit lenders cannot afford to let their underwriting standards slip again. If they do, they risk facing CMBSinvestor scrutiny. It is up to conduit lenders to prove to their secondary markets that they can deliver quality collateral. And it is up to mortgage brokers and bankers to re-educate your borrowers on conduit lenders’ expectations. Lenders are reigning in their originators and re-instituting a textbook lending paradigm. In recent years, because of the borrower-friendly environment, CMBS investors faced thin debt coverages, maximum loan to values (LTVs), maximum loan to costs and interest-only periods. Th is kind of maximum leverage from conduit lenders is no longer possible. The high level of maturities will not meet leniency now that banks can turn down deals and still make their quotas. Because of the increased competition for loans, you may need to shop deals even more to find the right mix of terms for

primary versus tertiary — to reflect risk more accurately. A class-C multifamily property in a tertiary market will not get similar loan terms as a class-A complex in a high-end neighborhood of a major metropolitan area. Lenders will also scrutinize capitalization rates. They will expect assets’ capitalization rates to be realigned with textbook consideration for their class, type and location. Cap rates in general are expected to increase — the degree of which may affect the velocity of sales in the marketplace as portfolios are refinanced and revalued. Moreover, market news will sway individual investors from tenancies-in-common. This will also put upward pressure on capitalization rates. Overall, lenders will expect lower LTVs and loan to costs, more-conservative cash-flow estimates, greater debt-service-coverage ratios, increased reserves and reduced interestonly periods.

Conduits’ influence Conduits represent a sizable portion of lenders that tend to move in lockstep. Because conduit lenders are a growing segment of real estate (see sidebar), when they move in one direction, it can affect how other lenders conduct their transactions. In the wake of headlines announcing a critical number of residential loan defaults, demand for all types of fixed-

Who Holds Commercial and Multifamily Loans? 50%

1990

2006 2nd quarter

40% 30% 20% 10% 0% Commercial banks

CMBS issuers

Others

Life-insurance Savings companies institutions

GSEs

Sources: Commercial Mortgage Securities Association, Federal Reserve

your borrowers. You now must walk your borrowers through the options they face to get the deal closed.

Increased scrutiny Conduit lenders will return to increased differentiation of loan terms between asset classes and an asset’s market location —

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income securities, including CMBS, declined significantly. The resulting drop-off in demand has caused spreads on CMBS to continue to set all-time highs. The spreads that conduits offer, however, may begin to stabilize by the second quarter as more conservative leverage is delivered to the secondary market.

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In the meantime, commercial banks and life-insurance companies, who maintain traditional standards and were largely unaffected by nonprime headlines, may offer more competitive spreads compared to conduit lenders. Conduits’ reaction may be severe as they attempt to quell their secondary markets’ concerns.

The right mix A result of wider spreads and more-expensive permanent financing is that borrowers have more options in structuring their refinances. You must help borrowers decide if a permanent or a mini-permanent loan is better for their portfolios and what parts are to be fi xed or floating. You may need to direct your borrowers toward mini-perm loans to help distract them from the sticker shock on 10-year terms. Mini-perm financing may become attractive to borrowers if they give up a portion of recourse debt. Other options may include mezzanine fi nancing, which will be more expensive but also increasingly necessary to make deals work. ■ ■ ■

After a period of aggressive lending practices, the market has caught up to conduit lenders. They are now more conservative in

their underwriting because the secondarymarket investors are rejecting the collateral that was available. Conduit originators have learned the importance of bringing quality collateral to their secondary market instead of trying endlessly to undercut other lenders. Brokers need to know that getting the lowest rate is no longer the only variable necessary to get a deal to work. Instead, getting deals to work now depends much more on obtaining the optimal structure.

James Wood is president of InvestWood Capital LLC, which has completed approximately $15 billion in contract underwriting in three quarters of the United States. For more information, visit its Web site at investwood.com. To contact him, call him at ( 713 ) 255-1800 or e-mail jim@investwood. com. Jonathan Campbell is a banking officer at Texas Capital Bank. To contact him, call him at (713) 439-5900 or e-mail jonathan.campbell@texascapitalbank.com.


Articles

Junior Debt Moves Up in the World Conservative lending practices open doors for subordinated-debt financing By Kyle Early, senior associate, Forman Capital

I

n an increasingly crowded

commercial real estate space, borrowers are seeking optimal leverage, and investors are targeting greater yields. Consequently, the use and availability of subordinated-debt financing is becoming more common. Put simply, subordinated debt is a loan that ranks behind senior debt for repayment in the event of a default. Subordinated-debt lenders, or junior lenders, have a second position behind the senior debt lender. This kind of financing offers multiple benefits to real estate investors. Understanding Kyle Early is a senior associate with Forman Capital. Founded in 2005, Forman Capital provides mezzanine and bridge financing from $3 million to $25 million nationwide. To date, Forman has originated and funded more than $150 million in commercial loans, quickly establishing itself as a reliable source of capital in the commercial real estate industry. Forman specializes in meeting the needs of real estate investors, developers, mortgage companies and banks. Contact Early at kearly@formancap.com.

how lenders underwrite and structure these transactions can give you an edge in today’s market.

The perks Junior debt is often less expensive than equity that requires sponsors to give up a percentage of ownership interests in their projects and to share the upside with equity investors. The increased debt leverage in these deals enhances the return on equity. Subordinated debt also allows the project’s sponsorship to retain operating control of the project. This can offer a significant advantage when a business plan changes midway through the transaction. Further, debt transactions typically require less time to underwrite than institutional-joint-venture or preferred-equity investments. They are generally easier to negotiate and close, as well.

Underwriting When underwriting junior debt on leveraged transactions, lenders consider property type, location, deal sponsorship, market dynamics, capital structure, the borrowers’ business plan and a few other factors. They are especially sensitive to

their loan to cost and loan to value. Subordinated debt traditionally capitalizes anywhere from 70 percent to 90 percent of total capitalization. Capitalization structures leveraged at more than 90 percent of cost are often thought of as equity. As such, they may require a profit

participation. This creates a potential upside for the junior lender in exchange for offering higher leverage. In many instances, however, subordinated lenders are more interested in mitigating the downside of a transaction than Continued on Page 92

SUMMIT FINANCIAL AND INVESTMENT GROUP LOAN TYPES

PROPERTY TYPES

LOAN PARAMETERS

• Construction

• Mixed Use

• LTV 60%-80% subject to property type

• Acquisition and Development

• Retail (Anchored and Unanchored)

• LTC 65%-80% subject to project type

• Permanent

• Office Buildings

• Bridge

• Hotels

• Renovation/Rehabilitation

• Apartments

• Minimum loan amount for USA-based transactions is $4MM USD. For selected International transactions the minimum is $10MM USD.

• Refinancing

• Resorts

• Land - only with horizontal or vertical construction (no land-only loans)

• Single Family Subdivisions

• Maximum loan amount is unlimited and subject to underwriting.

• Golf Courses

• Conversions

• Condominiums • Industrial • Marinas

EQUITY PARTICIPATION

• Office Condo

• SFIG can arrange equity participation to facilitate a transaction in conjunction with debt financing.

Broker Submissions Accepted

• Condo Hotel • Special Purpose Properties

Phone: 800.649.0311 or 801.944.4320 Fax: 801.944.4322 E-mail: info@sfig.com www.sfig.com 10421 South Jordan Gateway, Suite 600 South Jordan, Utah 84095 Real Estate Investment Bankers

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Lenders post your loan

‌ continued

search matrixes

scotsmanguide.com

Loan Submission Criteria a Accepts packages from brokers/ corresp. Call before sending b Only accepts packages

Loan Limits

through approved brokers/correspondents c Wholesale pricing available to brokers/correspondents

Minimum and maximum loan size may not apply to all

d Wholesale pricing only available to correspondents e Wholesale pricing available to approved brokers f Will collect fee for brokers/ correspondents g Par pricing available to brokers

property types and/or in all regions and is subject to change without notice

Property Types

Loan Type, Purpose or Parameters 1 2 3 4 5 6 7 8

Loan Amount Lender, Territory, Telephone Number

Submis

Min

Max

LTV

Criteria

$

$

Max %

Acquisition and development Bond Bridge loans Business loans Construction Forward commitments Joint ventures Mezzanine

9 10 11 12 13 14 15 16

Nonrecourse Notes purchased Purchase Refinance: Cash-Out Refinance: Rate and Term Remodel/renovation SBA loans Second mortgages

17 Agricultural (ranches and farms) 18 Automotive (gas stations, carwashes, etc.) 19 Churches

26 Mobile/manufactured home parks 27 Multifamily (See Multifamily matrix for details) 28 Office buildings/complexes

20 21 22 23

29 30 31 32 33 34 35 36

Hospitality (motels and hotels) Industrial Land Leisure (golf courses, marinas, RV parks, etc.) 24 Medical (hospitals, clinics, etc.) 25 Mixed-use properties

Office condos Owner occupied businesses Parking lot sites Rehabilitation facilities Retail (shopping centers/strip malls) Self-storage Single-tenant buildings Special-/Single-purpose buildings

DSCR

1

2

3

4

5

6

7

8

9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Mercantile Commercial Capital LLC NATIONWIDE 407-786-5040

Y a,c,d,f 300K 8M

90

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

1

Mercury Capital NATIONWIDE 212-661-8700

a,f

1M 20M

80

a,c,f

350K 10M

97

AZ CA CO HI ID NV OR UT 877-231-8778 a,c,f,g 250K 5M

75

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Metro Funding Corp. NATIONWIDE except: AK 866-302-6360

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Metro Pacific Bank Y

Y

Y

Y

1.15

MetWest Commercial Lender Inc. NATIONWIDE 866-766-4000

a,c,e,g 100K 3M

Y

Y

Y

Y

Y

Y

Y

Y

Y

97

Midwest Business Capital NATIONWIDE 877-751-4622

Y a,c,f,g 250K 15M

90

Y

Y

Y

Y

Y

Y

1.25 Midwest Business Capital is a division of United Midwest Savings Bank. Nationwide SBA PLP. New Stated Income Program.

Mission Oaks National Bank NATIONWIDE 800-825-0522

250K 15M

90

a,c,e,f,g 150K 10M

95

a,f,g

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Monday Capital NATIONWIDE 800-952-9422

Y

Y

Y

1

Mortgage Sources Corp. Y

NATIONWIDE 913-642-3434

a,f

100K 22.7M 85

Y

Y

Y

Y

Y

Y

1.25

Mountain Funding LLC NATIONWIDE 704-540-7400

Y a,f

5M 10M

70

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Debt, mezzanine, equity for value-added projects, non-recourse available, hard money, bridge, quick close, land

Nationwide Commercial Financial Group LLC NATIONWIDE 877-340-2228

a,f

250K 50M

95

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

1.2

New England Commercial Lender NATIONWIDE 800-785-3150

a,c,f

Y

Y

Y

Y

100K 30M 100

New World Commercial Lender NATIONWIDE 866-652-7202

Y a,e,f

100K 10M

90

1

We offer up to 90% LTV and up to 95% CLTV.

90

1

FICOs as low as 500 and LTVs up to 90%. NINA, Stated, Full Doc. Brokers Protected. Visit www.NorthPennFinancial.com

North Penn Financial NATIONWIDE 215-361-6900

Y a,c,e,f,g 75K 10M

Y

Y

Ocean Capital CT DC DE FL MA MD ME NC NH NJ NY PA RI SC VA VT 877-337-3757 a 100K 2M 90 1 Min

Max

LTV

DSCR

Y 1

2

3

Y

Y

4

5

Y 6

7

8

9

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Tell lenders you found them in Scotsman Guide Scotsman Guide

|

Commercial

continued ‌

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scotsmanguide.com

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February 2008

43


Preview

GUIDE

By Tony Stasiek

Mortgage Bankers Association Commercial Real Estate Finance/Multifamily Housing Convention and Expo Feb. 3-6 ■ events.mortgagebankers.org/cref2008 Walt Disney World Swan and Dolphin ■ 1500 Epcot Resort Blvd. ■ Lake Buena Vista, Fla. (800) 793-6222 Expo hours: 3 to 6 p.m. Feb. 3 ■ 10 a.m. to 5 p.m. Feb. 4 ■ 10 a.m. to 4 p.m. Feb. 5 As the commercial real estate market perhaps most directly affected by the housing industry’s downturn, the multifamily sector faces an uncertain supply-and-demand scenario this year. From Feb. 3 to 6, more than 4,600 mortgage professionals will attempt to sort it out at the Mortgage Bankers Association’s (MBA) annual Commercial Real Estate Finance (CREF) /Multifamily Housing Convention and Expo in Lake Buena Vista, Fla., near Orlando.

Check out Scotsman Guide’s CREF blog and on-scene event coverage at scotsmanguide.com/cref2008

In addition to industry analyses at numerous educational sessions — plus speakers from the likes of MBA Chairman Kieran Quinn to former football coach Lou Holtz — the four-day event features numerous networking and dealmaking opportunities. Not the least of them: CREF’s three-day trade show, featuring more than 100 exhibitors. Be sure to visit Scotsman Guide at booth No. 320.

Sessions and events* Business Benefits from Technology Platforms Track: Managing Business Operations and Risks Dolphin Northern Hemisphere Ballroom, Salon A1, Ballroom Level

Feb. 3 Expo 3 to 6 p.m. Walt Disney World Dolphin Atlantic Hall B-C, Ground Level

3:45 to 5 p.m.

Special event 6 to 10 p.m. Super Bowl Party Dolphin Northern Hemisphere Ballroom, Ballroom Level

Feb. 4 General session 8:45 to 10:15 a.m. Opening general session with Lou Holtz Dolphin Pacific Hall, Ground Level

Portfolio Lending: The Best Source of Capital in 2008? Track: Products and Markets Dolphin Americas Seminar, Ballroom Level

10 a.m. to 5 p.m.

General session

Dolphin Atlantic Hall B-C, Ground Level

Concurrent sessions 10:45 a.m. to noon The Music Stopped: Who Has a Chair? Track: Multifamily Dolphin Southern Hemisphere Ballroom, Salon III, Ballroom Level Changing Business Models Track: Business Efficiencies Dolphin Southern Hemisphere Ballroom, Salon II, Ballroom Level

8:45 to 10:15 a.m. Second general session, with Douglas G. Duncan, MBA’s senior vice president and chief economist, and Jamie Woodwell, MBA’s senior director of commercial and multifamily Dolphin Pacific Hall, Ground Level

Expo 10 a.m. to 4 p.m. Dolphin Atlantic Hall B-C, Ground Level

Concurrent sessions 10:45 a.m. to noon

2 to 3:15 p.m. Case Studies in Financing Workforce Housing Track: Multifamily Dolphin Northern Hemisphere Ballroom, Salon A3-A4, Ballroom Level

Location, Location, Location: The State of U.S. Property Markets Track: Products and Markets Dolphin Southern Hemisphere Ballroom, Salon III, Ballroom Level

Green Buildings: Today’s Fad or Tomorrow’s Necessity? Track: Products and Markets Dolphin Northern Hemisphere Ballroom, Salon A2, Ballroom Level

A Paradigm Shift in the Credit Market Track: Business Efficiencies Dolphin Southern Hemisphere Ballroom, Salon II, Ballroom Level

Underwriting is King Track: The Art of the Deal Dolphin Americas Seminar, Ballroom Level

Scotsman Guide

|

Commercial

|

Rating Agencies and Commercial Real Estate Finance Track: Managing Business Operations and Risks Location TBA

scotsmanguide.com

Servicers Panel Track: Managing Business Operations and Risks Dolphin Southern Hemisphere Ballroom, Salon IV, Ballroom Level Low Income Housing Tax Credits — What’s Keeping You Up at Night? Track: Multifamily Dolphin Southern Hemisphere Ballroom, Salon III, Ballroom Level Small Loans Track: Products and Markets Dolphin Southern Hemisphere Ballroom, Salon II, Ballroom Level The Mystery of CMBX Track: Business Efficiencies Dolphin Southern Hemisphere Ballroom, Salon V, Ballroom Level 3:45 to 5 p.m.

Feb. 5

Expo

86

Commercial Real Estate Fundamentals and Surveillance for Capital Markets Track: The Art of the Deal Dolphin Northern Hemisphere Ballroom, Salon A3-A4, Ballroom Level

2 to 3:15 p.m.

|

February 2008

Default Management/Exit Strategies Track: The Art of the Deal Dolphin Southern Hemisphere Ballroom, Salon IV, Ballroom Level FHA — A Constant in a Time of Change Track: Multifamily Dolphin Southern Hemisphere Ballroom, Salon III, Ballroom Level Sleepless in Seattle: Are Uninsured Perils Giving You Heartburn? Track: Managing Business Operations and Risks Dolphin Southern Hemisphere Ballroom, Salon V, Ballroom Level Mortgage Bankers: Navigating the Turbulent Capital Markets Track: Business Efficiencies Dolphin Southern Hemisphere Ballroom, Salon II, Ballroom Level

Feb. 6 General session 9 to 11 a.m. Enhancing Your Negotiating Techniques With Jeffrey H. Newman, Sills Cummis Epstein & Gross Dolphin, Southern Hemisphere Ballroom, Salon V, Ballroom Level


Exhibitors* 24 Capital Corp. ............................141 Affinity Bank................................. 500 Ambit Funding ...............................611 Andrews Kurth LLP ....................... 622 Appraisal Institute ..........................612 Appraisal.com ...............................614 Arbor Commercial Mortgage LLC ............................121 Attorneys’ Title Insurance Fund Inc. ...................................413 Bankers Insurance Service ............ 138 Benedict Group Inc. ...................... 640 Bock & Clark .................................117 BRT Realty Trust ........................... 331 Business Loan Express ................. 135 Business Partners LLC ...................415 California Mortgage and Realty Inc.................................. 631 Cambridge Realty Capital Ltd. ....... 325 CB Richard Ellis Inc. .......................615 Chatham Financial Corp. ............... 441 ChoicePoint .................................. 636 CIBC World Markets ..................... 219 Citibank.........................................314 CMBS.com ................................... 434 Column Financial, a Credit Suisse Company ........................131 Commercial Defeasance LLC .........414 Continental Environmental Redevelopment Fund ..................119 DebtX ...........................................516 Dominion Due Diligence Group ...... 323 Dominion Mortgage Corp. ..............118 Dougherty Funding LLC ................ 433 EBI Consulting .............................. 423 Edgewood Capital ..........................517 EFI Global......................................114 EMG .............................................417 Ernst & Young LLP .........................412 FICS............................................. 440

Walt Disney World Dolphin Atlantic Hall B-C, Ground Level GE Real Estate.............................. 406 Granite Loan Management LLC ......315 Gulfstream Capital Corp. ............... 400 Hanley Wood LLC ......................... 120 Hawkins Capital ............................ 140 Imperial Capital Bank .................... 608 Indymac Bank............................... 308 Integra Realty Resources .............. 639 InterBay Funding LLC.....................513 IntraLinks Inc................................ 609 IVI Due Diligence Services Inc. ...... 330 Jacques Whitford ......................... 539 John Hancock Financial Services .... 432 Joseph J. Blake & Associates Inc. . 532 KBS Capital Advisors .................... 536 Kennedy Funding Inc..................... 231 KSI Capital Corp. .......................... 508 LandAmerica Commercial Services.................................... 520 Leffler & Heaney Inc. .................... 637 Lehman Brothers Small Business Finance ...................... 209 LEM Mezzanine Inc. ...................... 422 Lender’s Quality Assurance ............112 Loan Depot Lending Company Inc., The .................... 633 Madison Commercial Real Estate Services ......................... 332 Madison Realty Capital ................. 421 Marshall Group ..............................410 Mercury Capital USA LLC .............. 338 Millman Surveying Inc. .................. 235 Mountain Funding LLC ...................116 Multi-Housing News...................... 521 National Field Representatives Inc. .................. 230 National Real Estate Investor ......... 616 NCB ..............................................318 NCO Financial Investigative Services.................................... 333

Scotsman Guide

North Shore Systems .................... 232 Nova Consulting Group ................. 220 Ocwen Financial Corp. .................. 537 Paradigm Capital Funding ............. 430 PGP Valuation Inc. .........................317 Princeton Financial Systems Inc. ... 627 Property & Portfolio Research ....... 123 Property Solutions Inc. ...................241 Prudential Mortgage Capital Co. .... 409 RAIT Financial Trust ...................... 530 RBS Greenwich Capital ................. 341 Real Capital Analytics ................... 420 Real Estate Finance & Investment ... 139 Real Estate Media Inc. .................. 240 Realogic Analytics Inc. .................. 302

Realpoint LLC ................................511 REIS Inc. ...................................... 321 Rekon Technologies ...................... 431 Richmond Monroe Group Inc. ........ 307 RoboDocs .................................... 523 Rockport Group, The......................124 RSM McGladrey............................ 340 Schonbraun McCann Group LLP, The ..........................311 Scotsman Guide ........................ 320 Shopping Center Business ............ 638 Silver Hill Financial LLC ................. 437 SS&C Technologies Inc. ................ 509 Terracon....................................... 620 Tranzon LLC ................................. 134

Tremont Realty Capital LLC ............113 Trepp LLC .................................... 130 Urban Land Institute ..................... 501 USDA Rural Development .............. 136 Velocity Commercial Capital ...........132 ViewPoint Bank ............................ 635 Waterstone Capital Advisors...........218 Western Capital Partners .............. 335 Zackin Publications/Commercial Mortgage Insight ........................115 Zions Bank ................................... 239 Zurich North America.................... 122 * Information current as of press time and subject to change.

Find More Opportunity Here AgriCap Financial Corporation offers real estate and financing solutions designed with you in mind. Flexible underwriting. Rapid funding. Fast credit decisions. All this from a lender you can trust. • AZ, CA, CO, ID, MT, NV, OR, UT, WA, WY • All commercial and investment properties, including agricultural • Loan amount: $500,000 to $5,000,000 • Terms: 3 months to 36 months • No prepay penalties • FICO: 600+ • Up to 65% LTV

Apartment Buildings | Mixed Use | Self Storage | Office Buildings Retail Buildings | Gas Stations | Warehouses | Light Industrial | Office Condos Lam Tran National Account Executive 703-738-4224 loans@amerlender.com

Loans from $100K to $1.5MM Loan Approvals based on DTI or DSCR Residential based Underwriting

Contact us at 213.542.5232 or sales@agricap.com. Visit us anytime at www.agricap.com.

Ruben Salama National Account Executive 703-635-7628 ruben@amerlender.com

Full Doc & Stated Loan Programs ARMs and Fixed Rates Up to 30 yr. Amortizations

Joe Molitor Regional Account Executive VA,MD,DC 301-538-8653 jmolitor@amerlender.com

Our Current Promos!!! *Earn an additional 25bps on all loans closing before 2/28/08

agricap.com 213.542.5232 Business Financing | Real Estate Lending | Cash Flow Solutions

*$1500 appraisal fee refund for full doc and stated loans that close before 3/31/08

Tresa Olsen Regional Account Executive TX, LA, AR, OK, KS office: 979-849-4900 cell: 281-799-2909 tolsen@amerlender.com

Nationwide Commercial Real Estate Lender www.amerlender.com

Mike Long Regional Account Executive 703-650-9535 mike@amerlender.com

Currently seeking experienced small balance commercial account executives, if interested please email careers@amerlender.com

Scotsman Guide

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Commercial

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scotsmanguide.com

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February 2008

87


Judge us by the NUMBERS! â—† â—† â—† â—† â—† â—†

6.0% Broker Commissions Available 2.25% to 3.5% over T-Bill at Par 620 Min. FICO – Full Doc. Only $50,000 to $5,000,000 Loan Amount 50 States in which YOU can lend 75% to 60% LTV for Most Deals

Unique Properties Restaurants, SFR Conversions, Hotels/Motels, Self Storage, MORE

FREEDOM CAPITAL, LLC CommRELoans@msn.com 8800 Gainey Center Drive – Suite 280 Scottsdale, AZ 85258 480-346-7448

WE ARE LOOKING FOR CORRESPONDENTS Presidential Bank, FSB

Property Types • apartment buildings

Financing income-producing commercial real estate properties

NATIONWIDE!

• ofÀce buildings • retail stores

Loans from $500,000 to $6 Million

• shopping centers • mixed-use facilities • warehouses • industrial complexes

ATTENTION ORIGINATORS & BROKERS We pay you to originate for us!

Pitbull Mortgage School

• assisted care facilities

Call John Foley

• self storage

Business Development Ofď€ cer

• and more

E Q U A L HOUSING LENDER

for information on our Correspondent Program

1-800-808-1424 ext. 2232

www.pitbullmortgageschool.com

90% Stated Income & 95% Full Doc Âť Business Owner Occupied Âť 30 Year Fixed Option

Âť Mixed-Use/Retail/OfďŹ ce/Warehouse/Automotive Âť Common sense underwriting and fast closings

Other programs are available for investment properties and loans up to $100,000,000. Contact us for a quick rate quote:

(877) 764-4343 or guide@LNBcapital.com

Receive monthly news and notes from Scotsman Guide. Sign up for our e-newsletter today.

Another Free Tool For Your Loan Officers.

scotsmanguide.com/4newsletter We buy:

90

Scotsman Guide

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Commercial

t*OWFTUPSSFQVSDIBTFGBMMPVU t-PBOTXEPDEFmDJFODJFT t8BSFIPVTFMFOEFSQPSUGPMJPT t"MU" t4VCQFSGPSNJOHBOENPSFy

|

scotsmanguide.com

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February 2008


Lenders post your loan

… continued

search matrixes

scotsmanguide.com

Programs / Guidelines / Parameters 1 Index used for adjustable rate

7 Participating construction

2 Max LTC (loan-to-cost)

8 FNMA DUS construction/perm

3 Max LTV upon completion

9 SBA

Loan Size Max Max Max

4 Construction only: Max term

10 Recourse required

Index

5 Mini-perm available

11 Subordinate financing allowed

Used

%

%

Mos

6 Construction to permanent available

12 On-time completion bonus

1

2

3

4

95

95

60

Mountain Funding LLC

LTC LTV

Telephone # 704-540-7400

NATIONWIDE

# 5

6

7

8

9

10 11 12

New

Rehab/

Construction

Renovation

Min

Max

Min

Max

5M

10M

5M

10M

Properties: Retail, office, multi & SFR, condo; debt, mezz, equity, hard money, bridge, non-recourse, presales/leasing may be req, land, quick closes.

Owens Financial Group

Fixed

Telephone # 925-935-3840

80

75

24

Y

100

50

60

Prime

85

75

12

Y

Y

Y

Prime

85

75

18

Y

Y

Y

70

36

Y

Y

1M

20M

1M

20M

Y

Y

1M

35M

1M

35M

Y

Y

Y

100K

3.2M

50K

3.2M

Y

Y

Y

350K

15M

350K

15M

Y

100K

7M

100K

7M

1M

180M

1M

180M

Properties: All property types considered

AZ CA ID NV OR UT WA

Peachtree Financial Partners Inc.

Telephone # 770-888-7054 Properties: All property types considered

GLOBAL

Premier Service Bank

Telephone # See lender directory Properties: All property types considered

CA

Provident Bank

Telephone # 951-300-4496

Properties: Commercial, apartments. Southern California

CA

Raymond C. Green Inc.

NA

Telephone # 617-947-8070

Properties: Single family, multifamily, condominiums, townhouses, mixed use, modular homes, land development, land loans

CT MA ME NH RI

Remington Financial Group Inc.

Telephone # 480-905-3239

LIBOR

85

100

36

Y

Y

Y

Y

Y

Y

Y

Fixed

80

75

24

Y

500K

10M

none

none

Fixed

80

75

24

Y

500K

10M

none

none

WSJ Prime

90

100

9

200K

4M

200K

4M

80

75

36

Y

Y

Y

4M

none

4M

none

Hard Money 65

65

60

Y

Y

Y

Y

300K

5M

300K

5M

Y

Y

Y

1M

25M

2M

20M

10

11

Properties: All commercial properties

NATIONWIDE

Seattle Funding Group Ltd.

Telephone # 800-974-8628 Properties: All property types considered

AK CA CO HI ID NV OR TX UT WA

SFG of California

Telephone # 858-751-0556 Properties: All property types considered

CA

Small Business Loan Source LLC

Telephone # 866-362-SBLS (7257)

Y

Y

Properties: Owner occupied commercial real estate

NATIONWIDE

Summit Financial and Investment Group LLC

Open

Telephone # 800-649-0311

Y

Properties: All property types considered

GLOBAL

The Pan American Fund NATIONWIDE except: HI

TMG Financial Services Inc. AZ CA NV OR WA

Telephone # 954-370-0600

Properties: Residential - Commercial - Land development Telephone # 714-939-3863

Prime

85

80

24

1

2

3

4

Properties: All property types considered 5

6

7

8

9

12

Min/Max

Min/Max

Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: matrixfeedback@scotsmanguide.com.

Tell lenders you found them in Scotsman Guide

HARD MONEY ONLY! GET AN ANSWER IN

COMMERCIAL PROPERTY AND LAND ONLY.

2 MINUTES!

11-15%, up to 60% LTV, $150,000 - $3,200,000

NATIONWIDE

NO UP-FRONT FEES

COMMON SENSE

No Home Loans

We are a private hard money lender

1-3 year balloon, no prepay penalty.

1.800.913.0297

www.hardmoney.cc

Hard Money Easier in Georgia. Unconventional real estate-based lending solutions fast – often within 10 days. Call 404-256-8600 or toll free: 1-888-603-6067.

Arlington Richfield International Project Financing

Frank Vogel 248.613.7423

100% Commercial Financing

Venture Capital

All Real Estate & Business Types

COMMERCIAL, CONSTRUCTION, DEVELOPMENT, RENOVATION, LAND & INVESTMENT PROPERTY LENDING. www.LibLoans.com

Scotsman Guide

|

Commercial

|

fvogel@arlingtonrichfield.com www.arlingtonrichfield.com

continued …

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February 2008

91


Commercial Lender Directory UNION BANK (fka Jackson Federal Bank)

800-463-0687 Bank 145 S. State College Blvd., Suite 600, Brea, CA 92821 Asset Size: $52.6 Bil Loan Vol: 2007 $453 Mil 2008 Projection: $500 Mil Comments: Par with 1/2% rebate to broker. AZ, CA, NV, OR, TX, WA, VA, MD, DC 877-945-2265 Robert Rice, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 714-990-7300 Dan Frink, VP, Chris Warren, VP, Esvin Galeano, VP or James Juarez, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 858-451-0238 Ron Hernandez, SVP AZ, CA, NV, OR, TX, WA, VA, MD, DC 949-588-5787 Chuck Weinhardt, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 818-906-1381 Alan Risch, VP or Kerri Spalding, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 626-533-5711 Vara Larson, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 909-383-2223 Tim Scanlan, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 480-477-8190 Matthew Frank, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 925-327-8098 Chase Osborne, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 925-327-8002 Frank Slawson, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 702-784-5900 Steven Myers, VP AZ, CA, NV, OR, TX, WA, VA, MD, DC 661-254-1266 Richard Wallace, VP WA, OR, CA 425-452-1887 Brandon Bemis, VP TX 214-922-4226 David Albright, VP TX 713-286-3054 David Buttecali, VP VA, MD, DC 703-556-5664

UNITED COMMERCIAL BANK

800-821-3899

$10.35 Bil

Comments:

Specializing in structured loans.

866-96-VELOCITY

Investment Bank

5716 Corsa Ave., Suite 102 Westlake Village, CA 91362 www.VelocityCommercial.com Comments:

Velocity is your national source for small balance commercial loans. We offer Stated loans up to $2M and Full Doc loans up to $3M with programs engineered for your success. We strive to form strong relationships with our brokers and we will not stop working for you until your deal funds. "Dedicated to service. Committed to close." Call us today!

Area

Phone

E-Mail

Nationwide

866-968-3562

info@velocitycommercial.com

VESTIN ORIGINATIONS INC.

702-227-0965

Private Lender

6149 S. Rainbow Blvd. Las Vegas, NV 89118 www.vestinoriginations.com Asset Size:

$420 Mil

Loan Vol:

2007

Comments:

Commercial Hard Money Lender

$295 Mil

2008 Projection: $350 Mil

Bank

555 Montgomery St. San Francisco, CA 94111 www.ibankunited.com

Asset Size:

VELOCITY COMMERCIAL CAPITAL

Phone

Contact

E-Mail

702-227-0965

Daniel B. Stubbs

dstubbs@vestingroupinc.com

W FINANCIAL MORTGAGE FUND

Area

Phone

Contact

E-Mail

San Francisco, CA San Francisco, CA Pasadena, CA

415-929-6106 415-315-2871 626-685-7240

Steven Chung Christian Lee Louis Tong

Steven.Chung@unitedcb.com Christian.Lee@unitedcb.com Louis.Tong@unitedcb.com

212-684-2283

Private Lender

149 Madison Ave. New York, NY 10016 www.w-fund.com

Loan Vol:

2007

$25 Mil

2008 Projection: $100 Mil

Comments:

DIRECT LENDER. See recent deals at: w-fund.com/recent Guaranteed quote within 24 hours. Flexible terms up to 85% LTV. Fast closings.

UNITED EQUITY FUNDING LLLP

952-447-2997 x 5 Private Lender 2209 Collier Pkwy., PMB 170, Land O' Lakes, FL 34639 www.myuef.com Asset Size: $20 Mil Loan Vol: 2007 $100 Mil 2008 Projection: $125 Mil Comments: Fast! Most loans <5 business days. Use BPO/CMA for values. Creative structures, hard $ rates. Interest only payments, loans must be serviced, maximum LTV is 60%. Nationwide 952-447-2997 x 5 Portia portia@myuef.com

UNITED FINANCIAL

866-520-UFTG (8384)

Private Lender

14400 NW 77th Ct., Suite 303 Miami Lakes, FL 33016 www.uftg.net Asset Size: $100 Mil Loan Vol: 2007 NA 2008 Projection: $250 Mil Comments:

Phone

Contact

E-Mail

212-684-2283 x 114

David Heiden

david@w-fund.com

WADOT CAPITAL INC.

Area

Phone

E-Mail

Nationwide West Coast Midwest South Northeasta Southeast

866-949-UFTG (8384) 866-940-UFTG (8384) 866-941-UFTG (8384) 866-942-UFTG (8384) 866-943-UFTG (8384) 866-945-UFTG (8384)

unitedsales@uftg.net westcoastsales@uftg.netaaaaaaaaaa midwestsales@uftg.net southsales@uftg.net northeastsales@uftg.net southeastsales@uftg.net

VALUATION MORTGAGE CAPITAL

954-636-2619 Private Lender 515 E. Las Olas Blvd., Suite 860, Fort Lauderdale, FL 33301 www.valuationmortgage.com Comments: Brokers protected. No broker packages necessary. Hotels, motels, apartment buildings, retail strip, restaurants, storage warehouse, warehouse, industrial, commercial, mobile home parks. Area

Phone

Contact

E-Mail

FL, GA, NC, SC

954-636-2619

Tim McLeod

tsm@valuationmortgage.com

800-650-2627

Conduit

200 East 42nd St., 9th Floor, New York, NY 10017 msneden@valuexpress.com www.valuexpress.com Loan Vol: 2007 $249 Mil 2008 Projection: $250 Mil Comments: Fixed-rate, non-recourse first mortgage loans for multi-tenant income-producing properties (apartments, retail, office, MHP, industrial, hotel and self storage) from $1 million to $50 million. Fixed- and floating-rate recourse first mortgage loans for owner occupied properties including restaurants and properties not qualifying for non-recourse loans from $500,000 to $5 million. Now providing SBA and conventional loans secured by real estate through its affiliate, Country Bank. ValueXpress encourages submissions from brokers, mortgage bankers, commercial banks and directly from borrowers. Loans considered nationwide and in Canada. No construction loans or rehabilitation loans accepted. Loan-to-Value up to 85% for multi-tenant income properties and 90% for general purpose owner occupied purchase transactions utilizing the SBA 504 program. Area

Phone

Contact

E-Mail

New York, NY New York, NY Buffalo, NY

800-650-2627 x 447 800-650-2627 x 475 716-400-1258

Michael Sneden Gary Unkel Craig Sieh

msneden@valuexpress.com gunkel@valuexpress.com csieh@valuexpress.com

206-362-4444

Underwriting based primarily on LTV. All borrowers/properties considered. No Pre-pay penalties. WA, OR & ID only.

Area

Phone

Contact

Cell

Seattle, WA Seattle, WA

206-362-4444 x 11 206-362-4444 x 12

Erik Egger Craig Halpin

206-650-7221 206-650-7222

770-760-1001

Investment Bank

WALL STREET CAPITAL FUNDING INC. The WSCF Building, 1818 Lakefield Ct., 2nd Floor Conyers, GA 30013 www.wscf.net Comments:

Our primary focus currently is Private Equity development and/or acquisitions especially with public/private components. >$25M with rates at 6.5%. However, we also provide traditional hard money. <$2M up to 97% LTV. 18 years in business.

Area

Phone

Contact

E-Mail

Nationwide

770-760-1001

Joel Miller

joel.miller@wscf.net

WALLACE CAPITAL LLC

617-423-2003

80 Summer St., Suite 200, Boston, MA 02110 $80 Mil 2007 $40 Mil New England States (MA, NH, ME, VT, RI, CT) Florida

Private Lender www.wallace-capital.com

Asset Size: Loan Vol:

2008 Projection: $40 Mil 617-423-2003 Jon or Robert 904-718-6875

Drew

jb@wallace-property.com rw@wallace-property.com dd@wallace-property.com

WAMU

866-863-6056 19850 Plummer St. Chatsworth, California 91311 Asset size: $330 Mil Comments: We lend on office, industrial, shopping centers, mixed use and multfamily properties.

Bank

Area

Phone

Contact

E-Mail

California

562-412-7337

Teresa Fukushima

teresa.fukushima@wamu.net

Tell lenders you found them in Scotsman Guide 112 Scotsman Guide | Commercial | scotsmanguide.com | February 2008

Private Lender

13751 Lake City Way NE, Suite 222 Seattle, WA 98125 www.wadotcapital.com

Comments:

United Financial is nationally recognized as a leader in the commercial lending industry. Our highly experienced staff is equipped to offer F.R.E.E. loan programs to brokers and borrowers. We specialize in evaluating, structuring and funding those difficult-to-place loans. United Financial, Simply Stated, Simply Commercial.

VALUEXPRESS LLC

Area

Nationwide


Commercial Lender Directory WARING INVESTMENTS INC.

973-472-7218

Private Lender

WESTFORD FINANCIAL INC.

215-742-6351

Area

Phone

Contact

E-Mail

MA, NJ, NY, PA, TX

973-472-7218

David Spector

dspector@waringinvestments.com

Area

Phone

Contact

E-Mail

Nationwide

215-742-6351

Bill Little

bill@westfordfinancial.com

WEXTRUST CAPITAL WARSOWE FINANCIAL GROUP (dba Point Fourteen Corp.) 10167 W. Sunrise Blvd., 3rd Floor Plantation, FL 33322

800-741-0563

Private Lender

Asset Size:

$75 Mil

Comments:

Commercial, Land and Residential Loans; No Credit Scoring; No Prepayment Penalties; LTV up to 65%; You Select the Appraiser; No Limit on Broker Fees; Brokers Protected; Interest Only; Quick Closings; Established 1975; Minimal Documentation

212-643-6190

Asset Size:

$75 Mil

Loan Vol:

2007

Comments:

www.wextrusthardmoney.com

$50 Mil

2008 Projection: $50 Mil

Area

Phone

Contact

E-Mail

Area

Phone

Contact

954-707-5412 954-707-5404 800-741-0563 800-741-0563

Julie Cusick Bob Lurer Julie Cusick Bob Lurer

JulieC@Warsowe.com BobL@Warsowe.com JulieC@Warsowe.com BobL@Warsowe.com

New York City, NY

212-643-6190

Amnon Cohen

866-278-5911

WHITLOCK CAPITAL GROUP

Bank

Business Real Estate Finance 333 Market St., MS-A0109-044 San Francisco, CA 95105 Comments:

No appraisal fee. No up front fee or title/escrow fees on equity & refinance transactions. Easy streamlined process â&#x20AC;&#x201D; credit decision usually within 72 hrs.

Area

Phone

Contact

Northern CA Southern CA San Francisco & Peninsula Los Angeles County Central CA, Nevada, WI, MN, IA North Florida & Miami East Florida & Orlando SC & Mid-Atlantic IN, OH, MI & Western PA IL New England, Northern NY New York City, Long Island NJ & Eastern PA Pacific Northwest Southwest, South Central Dallas/Ft. Worth & Houston GA, NC & TN

925-686-7725 760-930-6976 415-371-2573 818-385-2756 415-371-3523 727-841-6929 772-233-3797 704-942-5580 734-944-8858 847-951-8288 978-490-6887 631-777-5933 610-564-6709 530-477-6729 602-769-9023 972-355-8321 770-985-0997

Vickie Sherman Kimberly Seline Robert Sanchez Todd Nguyen Brian Kurtz Monday Johnson Karin Long Rich Snitko Yessant Habetz Matt Nyman Nate Ranney

877-313-9750

E-Mail

425-778-7222 5005 - 200th St. SW, Suite 100, Lynnwood, WA 98036 www.westarfunds.com Comments: Private Fund Lender - ID, OR & WA 425-778-7222 x 102 Eric Hogan 425-778-7222 x 127 Norm Davis 425-778-7222 x 124 Jon Covert 425-778-7222 x 129 To-Quyen Nguyen

888-922-3003

Private Lender

225 Franklin St., 26th Floor Boston, MA 02110-2804 www.worldcapitalbanc.com

Comments:

World Capital Bancorp is a nationwide direct commercial property lender funding multifamily and commercial mortgages. This includes conventional and conduit loans. We offer full documentation and stated income loan programs. YSP available. Broker packages are welcome.

Area

Phone

Contact

E-Mail

Nationwide

617-217-2851

Account Executive

info@worldcapitalbanc.com

YALE MORTGAGE CORP.

800-EASY-YES (327-9937)

Private Lender

4100 NE 2nd Ave., Suite 206 Miami, FL 33137

Comments:

WESTAR FUNDING INC.

Private Lender

3033 Excelsior Blvd., Suite 10, Minneapolis, MN 55416 www.whitlockcapitalgroup.com Loan Vol: 2007 NA 2008 Projection: $100 Mil Comments: Whitlock Capital Group is a nationwide direct lender. We fund both multifamily and commercial mortgages. We offer full documentation and stated income programs in addition to conduit loans. As little as 5% down on some programs. Rebates available. Brokers are welcome and protected. Nationwide 877-313-9750 Account Exec. information@whitlockcapitalgroup.com

WORLD CAPITAL BANCORP

Vickie.L.Sherman@wellsfargo.com kimberly.seline@wellsfargo.com robert.sanchez2@wellsfargo.com todd.nguyen@wellsfargo.com Brian.J.Kurtz@wellsfargo.com monday.johnson@wellsfargo.com karin.long@wellsfargo.com richard.snitko@wellsfargo.com yessant.habetz@wellsfargo.com matthew.nyman@wellsfargo.com nate.ranney@wellsfargo.com Anthony Monteleone anthony.monteleone@wellsfargo.com Doug Cahill douglas.cahill@wellsfargo.com Leslie Chandler Leslie.J.Chandler@wellsfargo.com Penny Jones penny.jones@wellsfargo.com Gabriel Medrano gabriel.medrano@wellsfargo.com Brad Cornwell brad.cornwell@wellsfargo.com

Mortgage Bank

114 W. 47th St., 20th Floor New York City, NY 10036

Florida Florida Nationwide Nationwide

WELLS FARGO BANK

REIT

7146 Dungan Rd., Philadelphia, PA 19111 www.westfordfinancial.com Loan Vol: 2007 $40 Mil 2008 Projection: $60 Mil Comments: Churches only. Fax: 215-742-1858

125 Kingsland Ave., Clifton, NJ 07014 www.waringinvestments.com Asset Size: $25 Mil Loan Vol: 2007 $10 Mil 2008 Projection: $15 Mil

THE NATION'S LARGEST HARD EQUITY LENDER RESIDENTIAL AND COMMERCIAL

Private Lender Apply online:

206-334-1579 (cell) 206-972-7515 (cell)

WESTERN CAPITAL PARTNERS LLC

303-860-1829 Private Lender 1490 Lafayette St., Suite 306, Denver, CO 80218 www.gowcp.com Asset Size: $100 Mil Loan Vol: 2007 $100 Mil 2008 Projection: $120 Mil Comments: Western Capital Partners is a Private Real Estate Bridge Lender. Because we self-fund our loans, we offer greater flexibility, creativity and can close in as little as seven days. WCP funds land acquisition and entitlement or development, income properties, condo conversions, SF and MF residential. Distressed borrower, cash-out, cross collateral and project rescue loans also funded. Area

Phone

Contact

E-Mail

Southeast, West Coast Northeast, Midwest Mountain States

303-839-3828 303-839-3538 303-839-3532

John Kutac Dave Gammom Rob Walton

jkutac@gowcp.com dgammon@gowcp.com rwalton@gowcp.com

www.yalemortgage.com

Area

Phone

Contact

E-Mail

Nationwide

800-EASY-YES (327-9937)

Alicia Iglesias

aiglesias@yalemortgage.com

ZIONS SMALL BUSINESS FINANCE

800-585-1722 2399 Gateway Oaks Dr., Suite 110 Sacramento, CA 95833 www.calbanktrust.com Asset Size: $45.7 Bil Comments: Nationwide lender for owner occupied, investor, multifamily #1 SBA 504 Lender in U.S.

Bank

Area

Phone

Contact

E-Mail

California (multiple reps) Northeast Southeast Midwest Pacific Northwest Rocky Mountain Region AZ, NM, NV AZ, NM, NV AZ, NM, NV

303-948-8411 303-948-8411 303-948-8411 303-948-8411 503-471-1380 303-256-6394 602-241-2218 602-241-2218 602-241-2222

Tom Hollinshead Tom Hollinshead Tom Hollinshead Tom Hollinshead Jess Richardson Rick McMann Gregory DerHaag Gary Miller Leigh Ann White

tom.hollinshead@zionsbancorp.com tom.hollinshead@zionsbancorp.com tom.hollinshead@zionsbancorp.com tom.hollinshead@zionsbancorp.com jess.richardson@zionsbancorp.com rick.mcmann@zionsbancorp.com gregory.derhaag@zionsbancorp.com gary.miller@zionsbancorp.com leigh.white@calbt.com

Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: matrixfeedback@scotsmanguide.com.

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