1 | February 1, 2013

In This Issue

3 berkadia Provides bridge Loan on brand-New N.J. Property

3 Oritani Finance Company Closes 2012 With $58 M. Financing

5 Torchlight Investors Finances acquisition of Sofitel Miami Hotel

7 Hot December for NCb: $78 M. in Loans Closed

7 $26 M. Loan for Houston’s Metropolitan Properties of america apartments

9 PMCC: $105 M. Loan for Chicago’s 200 West Madison

9 beech Street Capital Closes on $70 M. Fannie Mae refi

11 Our Networking Guide to the Mortgage bankers association Conference in San Diego

“We project $500 million to $1 billion of loan sales volume nationally in 2013, and $100

to $200 million in investment sales here in New Jersey.”

—Steven Schultz on page 15

The LEAD

The Insider’s Weekly Guide to the Commercial Mortgage Industry

Jamestown is working to close on a $168 million loan led by DekaBank to finance its recent purchase of the Milk Studios build-ing at 450 West 15th Street. The spot borders the High Line and is home to an eclectic mix of tech, fashion and creative tenants. Michael Phillips, Jamestown’s chief operating officer, told Mortgage Observer Weekly that he ex-pects the financing to be finalized in the next few weeks and that it will replace a bridge loan provided by the seller, Stellar Management.

Seller financing, which is more commonly associated with smaller and residential real estate deals, was used in this case to close on the deal before the year’s end in order to avoid the pending in-crease of capital gains taxes. The Milk Studios deal may be among the most prominent examples of recent seller-financed deals, but this relatively un-common tool became more popular at the end of 2012, when the fear of higher tax-es and the resulting rush to sell were peaking, experts told Mortgage Observer Weekly.

Mr. Phillips said he couldn’t comment on the seller’s intentions, but he confirmed that “we had an interim financing because the goal was to close by the year-end.” A spokesperson with Stellar Management declined to com-ment for this story.

Indeed, the deal happened quickly. At

the beginning of November 2012, Stel-lar Management’s CEO, Laurence Gluck, publicly confirmed that the eight-story, 325,000-square-foot office building was on the market. The deal with Jamestown took just six weeks from start to finish, according to Mr. Phillips, and it closed on December 21, public records show.

Jamestown also owns the famed Chelsea Market, located just across the street. The ad-dition of the Milk Studio to Jamestown’s port-folio confirms the company’s commitment to the area, Mr. Phillips said. Public records show

that the net price for the property was $285 million, which Mr. Phillips confirmed. Stellar Management and Rockpoint bought the building in 2008 for $161 million.

During the negotiation with Stel-lar, Jamestown was in talks with DekaBank to provide the financing.

In 2011, the bank was among the lenders that provided a loan of approximately $120 million to finance Jamestown’s acquisition of a portfo-lio of retail properties in Boston, Mass. None-theless, closing the new loan before the year’s end was not doable. To overcome the financ-ing issue, Stellar provided a $150 million loan with a 120-day term. “We expected to replace

DekaBank Loan Set to Replace Short-Term Seller Financing on

Jamestown’s Milk Building Acquisition

See DekaBank Loan... continued on page 3

UBS Provides $105 M. Loan on Tribeca Condo-Hotel Conversion

UBS has provided a $105 million loan on a condominium-hotel conversion in Tribe-ca by Metro Loft Management, Mortgage Observer Weekly has learned. The financ-ing is a sign that the long-stalled planned conversion of the vacant seven-story office building at 443 Greenwich Street, be-tween Vestry and Desbrosses Streets, can finally move ahead.

The financing on the property was closed on Dec. 31, according to public records. On Jan. 15, the New York City Department of Buildings approved an application “to remove non structural partitions, hung ceilings and finishes in portion of cellar and floors.” On the same day, though, an

See UBS Provides... continued on page 5

2 | February 1, 2013

Columbus Square500,000 Sq. Ft. Retail Condominium Portfolio

$280,000,000 New York, NY

B&L Portfolio25 Buildings Multifamily Portfolio

$160,000,000New York, NY

350 Park Avenue585,000 Sq. Ft. Office Property

$300,000,000New York, NY

568 Broadway350,000 Sq. Ft. Office Property

$200,000,000New York, NY

1 Battery Park Plaza New York, NY 10004 | 212-972-3600 | www.meridiancapital.com

In 2012, Meridian proudly advised on financing for the following transactions:

220 Water Street134 Units Multifamily Property

$52,000,000Brooklyn, NY

Harrison Station275 Units Multifamily Property

$49,950,000 Harrison, NJ

West 14th Street61,000 Sq. Ft. Mixed-Use Property

$55,000,000New York, NY

Eastgate Tower186 Rooms Hotel Property

$50,000,000New York, NY

Steelworks Lofts110,000 Sq. Ft. Mixed-Use Property

$28,400,000 Brooklyn, NY

Lexington Avenue10,130 Sq. Ft. Retail Property

$17,700,000 New York, NY

The Berkshire93 Units Multifamily Property

$33,000,000Hoboken, NJ

Kings Highway60,800 Sq. Ft. Retail Property

$20,200,000Brooklyn, NY

MORTGAGE OBSERVER WEEKLY - Jan 25, 2013 - 2012 YE.indd 1 1/23/13 4:44 PM

3 | February 1, 2013

59 Washington Street, Hoboken, N.J.

the loan within three months,” said Mr. Phil-lips. The deal is proceeding faster than initial-ly expected, and Jamestown currently plans to close on the new loan within weeks. The new financing will mature in seven years. Mr. Phillips declined to disclose interest rates.

Seller financing is “usually used as an incen-tive to help selling the building,” said Howard Krams, a partner at the accounting firm An-chin, Block & Anchin. In many such cases, sellers use the so-called “installment method,” a tool that gives taxpayers the opportunity to defer taxable gains. Obviously, though, the goal of many sellers at the end of 2012 was avoiding the following year’s increased taxes, and so they elected not to use the installment method, re-porting all the gain as income in the year of the sale. Mr. Krams—who was not involved in the Milk Studios deal and didn’t discuss specific cli-ents’ deals—confirmed that he had seen a much higher interest in seller financing.

In another such deal, the California-based Matteson Companies’ $28.2 million acqui-sition of Langara, a 134-unit rental property outside Seattle, Wash., was closed by the year’s end thanks to short-term financing provided by the seller.

DekaBank Loan... continued from page 1

At the end of 2012, Oritani Finance Company closed on a series of financings on several retail and residential portfoli-os across the country for over $58 million, Mortgage Observer Weekly can exclusively report.

According to Oritani Bank Senior Vice President David Garcia, the lender was able to close on this variety of transactions due to a “unique alchemy [of ] CMBS peo-ple bringing deep experience and relation-ships combined with a strong bank capital position.”

Oritani Finance provided a $28 million loan to a New York-based family on a CVS pharmacy-anchored shopping center locat-ed at 59 Washington Street in Hoboken, N.J., directly across from the PATH/NJ Transit train station. The seven-year loan was pro-vided for a 30-year amortization, with inter-est-only payments for the first two years.

CVS occupies a 15,000-square-foot space in the property. In 2011, the store report-ed sales of $1,505 per square foot, making it one of the pharmacy chain’s top stores. Other major tenants of the center are New York Sports Club, which has leased 23,000 square feet of basement space since 1998, and Office Depot, which has a 6,000-square-foot store. The property includes a parking lot with approximately 260 parking spaces that is leased long-term to Central Parking Systems.

In another deal, subsidiaries of Maryland-based American Realty Capital Trust III obtained a $15 million loan from Oritani

secured by a portfolio of 30 Citizens Bank branches, 25 of which are full-service and five of which are limited-service. The prop-erties are located in eight states: Pennsyl-vania, New Jersey, Delaware, Connecticut, Massachusetts, New Hampshire, Illinois and Ohio. The five-year loan carried a cou-pon of 3.5 percent and required interest-only payments for the initial term, with an option to extend for a second five-year am-ortizing term.

Oritani also refinanced a portfolio of five manufactured housing communities locat-ed between the cities of Scranton and Wilkes Barre, Pa., for $15.5 million. The borrow-er, United Mobile Homes Inc., a publicly traded REIT, purchased the properties in 2011. The loan carried a five-year fixed-rate term with an option for a second five-year term, both based on a 30-year amortization. The properties were cross-defaulted and cross-collateralized. This is the second loan Oritani provided to the borrower, Mr. Gar-cia said.

Oritani Finance Company Closes 2012 With $58 M. Financing

Berkadia Provides Bridge Loan on Brand-New N.J. Property

Berkadia Commercial Mortgage origi-nated a $41.5 million, 12-month bridge loan for a mixed-use multifamily and retail prop-erty located at 1 Main Street in Edgewater, N.J., that is set to be completed today, Feb. 1.

The borrower, One Main Street Edge-water LLC, will use the financing to pay off an existing construction loan and partial-ly recapture its equity. The financing also includes a provision that enables the bor-rower to earn additional loan proceeds as leasing and occupancy increases.

The 132,000-square-foot 1 Main Street is the second phase of a development com-prising 495 residences and 100,000 square feet of retail space. The new property con-sists of two buildings containing 110 apart-ments and approximately 16,000 square feet of retail.

“Berkadia has had a long-standing rela-tionship with the principals of One Main Street Edgewater LLC, so we were delighted to work with them again,” said Berkadia Se-nior Vice President John DiCrocco. “Our origination and underwriting team deliv-ered a financing solution that was precisely what they requested—a loan which enabled them to pay off an existing construction loan and recapture equity prior to project completion and stabilization.”

Work ForceNewly formed private direct lender

Case Real Estate Capital has launched a middle-market situational lending plat-form, according to managing principal and co-founder Sanford Herrick. The Ro-chelle Park, N.J.-based outfit will focus on acquiring loans between $2 million and $25 million that are secured by commer-cial real estate in the Northeast and Mid-Atlantic.

Mr. Herrick, who has invested in over $4 billion of commercial properties over his career, said that Case will offer high-ly profitable opportunities for local en-trepreneurs and flexibility for borrowers requiring dependable financing. “We do not seek equity participation as part of the loan’s fee structure,” he said. “Our goal is to support each borrower’s business plan.”

Before co-founding Case Real Estate Cap-ital, Mr. Herrick was a manag-ing director and co-founder of Hudson Realty Capital.

“Banks, insur-ance companies and Wall Street firms are continuing to sell off their sub- and nonperforming portfoli-os, creating new opportunities to purchase real estate assets and/or loans in second-ary markets,” he said. “Case is focusing on these types of opportunistic investments that fall outside the realm of convention-al lenders by providing short-term, fixed-rate loans necessary for repositioning or redevelopment.”

Sanford Herrick

4 | February 1, 2013

5 | February 1, 2013

easternconsolidated.com

Real estate investment services

SELECTED TRANSACTIONS

$150,000,000ResidentialThe Chatsworth 342-344 West 72nd Street161 units, 235,000 sq ft

$62,400,000Of�ce311-319 West 43rd Street177,000 sq ft

$56,000,000Mixed-Use13-17 Laight Street aka52-58 Varick Street25 units, 80,000 sq ft

$41,500,000Commercial/Loft72-76 Greene Street35,000 sq ft

$40,500,000Purchase of Equity Interest in Mixed-Use Properties104-122 East 17th Street25 Cornelia Street89-91 Christopher Street329-341 Bleecker Street

$47,000,000Residential2410-2418 Broadway aka 216 West 89th Street46 units, 76,000 sq ft

We open the doors that close the deals.

application for façade restoration was not approved.

The building has a troubled history. In 2006, Kar Properties paid $114 million for the building with an $85 million loan from Anglo Irish Bank. The plan was to convert the property into a luxury condo hotel. Later, Kar foreclosed on a $20 mil-lion loan from WD Group, an Israeli in-vestment firm, which ended up in control of the property after a legal battle. In July 2012, a joint venture led by developer Met-ro Loft Management bought the building for $150 million.

UBS Provides... Continued from page 1

443 Greenwich Street

Torchlight Investors has provided $25 million in financing to the Laurus Corpo-ration, a Los Angeles-based real estate in-vestment and development firm, for the acquisition of the Sofitel Miami hotel.

The loan has a three-year term and is composed of both senior mortgage and mez-zanine debt. The loans will be held in the portfolio of Torchlight Debt Opportunity Fund IV—the seventh opportunistic/value-add fund launched by Torchlight to target commercial real estate debt investments.

Built in 1986 and renovated in 2000, the Sofitel Miami hotel is located at 5800 Blue Lagoon Drive, adjacent to the Miami Inter-national Airport and the Waterford Business Park. The property is a 14-story, 281-key, full-service luxury hotel that sits beside a lagoon on approximately 10 acres of land. It features a fitness center, an outdoor pool, tennis courts and over 11,000 square feet of meeting and event space. In addition to the purchase price, approximately $4.5 million of the loan will be used to complete a prop-erty improvement plan to upgrade and revi-talize the hotel.

“This loan transaction exemplifies the high quality of investment Torchlight

looks to make on behalf of its Debt Oppor-tunity Fund investors,” commented Steve Schwartz, Torchlight’s managing director of acquisitions. “Sofitel Miami is a well-positioned Class A luxury hotel which enjoys strong upside potential, based on Miami’s economic fundamentals and the hotel’s own additional development pros-pects.”

Torchlight Investors Finances Acquisition of Sofitel Miami Hotel

Sofitel Miami Hotel

6 | February 1, 2013

7 | February 1, 2013

Watertower Apartments

HFF has closed the sale of—and arranged acquisition financing for—Watertower Apart-ments, a 228-unit multi-housing property with approximately 10,000 square feet of re-tail space in suburban Minneapolis, Minn.

The buyer was KBS Legacy Partners Apartment REIT Inc., a Newport Beach, Calif.-based non-traded REIT sponsored by KBS Capital Advisors LLC. Allianz of America provided a five-year, 2.46 percent, fixed-rate $25 million loan on the property. The loan has two years of interest-only pay-ments and will be serviced by HFF.

Watertower Apartments is located at 12300 Singletree Lane, in close proximity to Interstate 494, Highway 212 and the Eden Prairie Shopping Center in Eden Prairie, about 16 miles from downtown Minneapolis.

Completed in 2004, the 95 percent-leased property consists of a three-story residen-tial building with a connecting single-story retail building and a four-story residential building that sits atop a two-level parking ga-rage. The property features a fitness center, a business center, a community room, confer-ence rooms, a racquetball court, a basketball court, a sauna and hot tub, and courtyards with grills. The retail portion of the property is leased to the Old Chicago Restaurant.

The HFF investment sales team represent-ing the seller was led by Executive Managing Director Matthew Lawton and Managing Di-rectors Sean Fogarty and Marty O’Connell. The HFF debt-placement team representing the buyer was led by Managing Director Tim-othy Joyce.

HFF Arranges $25 Million Financing for Watertower Apartments in Minneapolis

$26 M. Loan for Houston Metropolitan Properties of America ApartmentsCIT Real Estate Finance has funded the

recapitalization and renovation of two mul-tifamily properties in Houston, Texas. The $26 million senior secured term loan went to Boston’s Metropolitan Properties of America, which also owns properties in Massachusetts, Florida and Ohio.

The Houston properties—Cabochon at River Oaks and River Oaks—are lo-cated at 2828 Bammel Lane and 3435

Westheimer Road, respectively. They in-clude a total of 264 units that range from stu-dios to three-bedrooms.

“We are pleased to provide this financing to Metropolitan Properties of America that will further assist them in the renovation of their River Oaks properties,” said Matt Galligan, group head of CIT Real Estate Finance.

Jeffrey Cohen, chief executive officer of MPA, said that its relationship with CIT,

which has been building, will be called upon as the company acts on future investment properties. He confirmed that the financ-ing will be used to renovate the Houston properties.

The terms of the loan weren’t disclosed. In early January 2013, CIT Group also an-

nounced that it had agreed to buy a portfolio of loans from Flagstar Bank that includes $800 million in loans currently outstanding.

Hot December for National Cooperative Bank: $78 Million in Loans Closed

In a very busy end of the year, Nation-al Cooperative Bank, a lender on coop-erative housing throughout the tristate area, arranged more than $78 million in new financing during December. The bank closed loans on 31 New York-area properties.

Among the transactions was a $5.5 mil-lion first mortgage and a $1 million line of credit that the bank provided to The Ter-race View Owners Inc. on a 146-unit co-op located at 79-10 34th Avenue in Jackson Heights, Queens.

NCB provided also a $9 million first mortgage and a $1 million line of credit to Heights 75 Owners Corp. on a 95-unit co-op located at 75 Livingston Street in Brooklyn.

Another financing was a $9.3 million first mortgage and a $1 mil-lion line of credit pro-vided to Mamaroneck Gardens Inc. on a 267-unit co-op located at 100-348 Richbell Road in Mamaroneck, N.Y.

“As 2012 comes to a close, we proudly look back at the many co-operatives this year which turned to the bank to arrange funds for capital improve-ment projects, working to better position their properties in this competitive mar-ket and for years to come,” said Edward Howe III, managing director of NCB’s New York office. “December’s strong fi-nancing activity speaks to the success of the New York office, and we look to 2013 with sharp focus.”

By the Numbers

31The

number of transactions NCB closed in December

2012

8 | February 1, 2013

9 | February 1, 2013

Prudential Mortgage Capital Company has provided Multi-Employer Property Trust and its real estate advisor Bentall Kennedy with a $105 million loan to refinance a Chicago of-fice property it bought in Sep-tember 2011 for $218 million.

At the time, David Antonel-li, executive vice president and MEPT Portfolio Manager at Bentall Kennedy, said that sev-eral factors had made the ac-quisition of 200 West Madison Street attractive.

“The vacancy rate in the West Loop has fallen over the last several quarters and demand for office space has been led by companies relocating to and ex-panding in downtown Chicago,” Mr. Antonelli said. “We think this trend will continue and benefit office buildings such as 200 West Madison.”

PMCC’s financing for the 45-story building is a 10-year, fixed rate loan that is a first

mortgage for MEPT on the tower. It was arranged by Dave Hendrickson and Keith Largay in the Chicago office of Jones Lang LaSalle.

“This building’s quality and central location, combined with the quality of the sponsorship, made this transaction extreme-ly attractive,” said Sarah Teunis, a director in PMCC’s New York office who led the transaction along with Bryan McDonnell, a principal in PMCC’s Arlington, Va. office.

Tenants at 200 West Madi-son, which is 928,000 square feet and leased as a multi-ten-ant tower, include Blackstone and Strategic Hotels& Resorts.

Just last year PMCC provid-ed a $200 million first mortgage for Bentall Kennedy’s Newport Tower, a 1,099,767-square-foot office tower at 525 Washing-ton Boulevard in Jersey City, N.J. bought in October 2011 for $377.5 million.

PMCC: $105 M. Loan for Chicago’s 200 West Madison Beech Street Capital Closes on

$70 Million Fannie Mae Refi Beech Street Capital closed a $70 million Fannie Mae loan to

refinance The Gotham, a 220-unit, 22-story high-rise apartment building at 255 Warren Street in Jersey City, N.J. The fixed-rate loan has a 10-year term, 9.5 years yield maintenance and a 30-year amortizing schedule.

The borrowers, Panepinto Properties and Applied Develop-ment, sought a cash-out refinance of the property to invest in other development opportunities and take advantage of histori-cally low rates. The challenge was securing a loan that was large enough to compensate for the substantial prepayment penalty on its existing loan.

Beech Street was able to close the loan on the property in less than 45 days. “This was our second transaction with Beech Street in less than a year,” said Chris Zirrith, chief financial officer at Ap-plied Development. “We were thoroughly confident that the com-plexity of the deal wouldn’t slow them down and that they could deliver the terms we needed. They fully met our expectations.”

Developed in 2000, The Gotham includes six occupied com-mercial spaces covering over 20,000 square feet on the ground floor and a 340-space, four-story parking garage. It is located three blocks west of the Exchange Place PATH station and six blocks northwest of the Paulus Hook Ferry.

Brian Sykes, senior vice president in Beech Street’s Boston of-fice, originated the transaction. BlueGate Partners, a boutique advisory and transactional firm based in Manhattan, brokered the deal.

10 | February 1, 2013

Untitled-49 1 1/28/13 3:52:24 PM

11 | February 1, 2013

Chase

The Parties! The Suites!Prudential

Hospitality SuiteManchester Grand Hyatt, Fourth Floor

Randle Ballroom AB

Jones Lang LaSalleHospitality Suite

Manchester Grand HyattHarbor Tower, Suite 3633

Meridian Capital Group’s Annual MBA

CREF LuncheonMonday, February 4, 12:00 p.m. – 2:00 p.m.Invite-Only: Your best bet is to email or call Jonathan Stern at jstern@meridiancapital.

com or (212) 612-0181Manchester Grand Hyatt San Diego,

Manchester BallroomSecond Level – Salons G, H & I

Morgan Stanley Cocktail PartyMonday, February 4, 5:00 p.m. – 7:00 p.m.

Roy’s Restaurant on the San Diego Waterfront

333 W. Harbor Drive

Ladder Capital’s Cocktail PartyMonday, February 4, 5:30 p.m. – 7:00 p.m.

Tipsy Crow770 Fifth Avenue (between F and G

Streets)

Bank of America Merrill Lynch Cocktail Party

Monday, February 4, 5:30 p.m. – 7:30 p.m.San Diego Wine & Culinary Center

200 Harbor Drive

JPMorgan Networking ReceptionMonday, February 4, 6:00 p.m. – 9:00 p.m.

Andaz San Diego600 F Street

Wells Fargo Real Estate Capital Markets Cocktail Party

Monday, February 4, 6:00 p.m. – 9:00 p.m.Andaz Hotel – Ivy Nightclub

600 F Street, First Floor

NorthMarq Capital ReceptionTuesday, February 5, 4:00 p.m. – 6:00 p.m.

Hard Rock Hotel207 Fifth Avenue, Fourth Floor

Front Desk

Networking Lounge

Mortgage Bankers

Association

Johnson Captial

Group, Inc.

Trepp, LLC

BRT Realty Trust

Morningstar Credit

Ratings LLC

Real Captial Analytics

Colliers Int’l

Valuation

Arbor Commercial Mortgage,

LLC

CBRE, Inc.

MBA’s 2013 CREFManchester Grand Hyatt San Diego

The Mortgage Bankers Association’s yearly Multifamily Housing Convention & Expo is as much about networking and gaining access to the right parties as it is about the informative panel discussions and speakers. One banker, in fact, recently told MOW that his colleagues have regularly staked out a spot next to the escalators at the venue hotel to scope out those headed up or down. This year’s conference, at

the Manchester Grand Hyatt San Diego, proves to be no different. Here are our picks for 10 must-visit booths in the expo hall and a few par-ties and hospitality suites to check out. Happy hunting!

You’re on your own for these, and the deadline to RSVP for some has passed:

12 | February 1, 2013Untitled-62 1 1/30/13 12:17:39 PM

13 | February 1, 2013

The year ahead promises to be busy in states with a high number of leases coming due, according to data from Trepp.

“If one or more of the top three tenant leas-es is expiring in a property collateralizing a se-curitized loan, it is counted here,” said Trepp research analyst Joe McBride. Mr. McBride’s takeaway? “Lease expirations can often be a tell for future delinquency or distress,” he ex-plained. “They can also be viewed as an op-portunity for borrowers in growing markets to re-sign tenants to market-rate leases. The usual suspects are at the top of each region: New York, Illinois, Texas and California.”

Source:

The Takeaway State Count Expiring Sq. Ft. Loan Balance

NY 293 8,868,519 $8.59 billionPA 197 8,002,441 $2.93 billionNJ 176 5,925,095 $1.91 billionMA 98 3,560,426 $1.21 billionCT 89 1,700,331 $1.11 billionNH 14 296,486 $77.7 millionME 13 491,194 $302.8 millionRI 9 307,847 $131.9 millionVT 6 33,182 $14.1 million

IL 187 5,548,714 $2.76 billionOH 187 5,409,317 $1.44 billionMI 116 3,016,617 $1.05 billionMN 95 1,834,089 $939.64 millionWI 70 1,959,468 $734.5 millionIN 67 2,125,790 $450.6 millionMO 55 1,025,285 $527 millionKS 29 386,698 $172.8 millionNE 21 454,072 $120.3 millionIA 13 439,243 $97.4 million

TX 590 9,602,601 $5.12 billionFL 437 6,474,666 $4.61 billionVA 244 6,045,079 $3.09 billionGA 234 4,478,049 $2.74 billionMD 205 4,826,717 $2.26 billionNC 191 4,421,290 $1.23 billionTN 101 2,374,356 $707 millionAL 75 1,941,551 $551.6 millionSC 75 1,639,589 $383.5 millionLA 55 1,153,331 $412.6 millionKY 47 1,036,184 $414.8 millionDE 41 1,801,932 $530 millionDC 31 2,115,993 $1.22 billionMS 23 393,114 $103.5 millionAR 18 229,686 $228 millionWV 8 244,381 $76.5 millionVI 1 2,930 $6.2 million

CA 1,311 25,585,657 $15.62 billionAZ 213 3,606,352 $1.73 billionCO 175 2,535,207 $1.57 billionNV 161 1,993,481 $1.58 billionWA 155 3,012,693 $1.3 billionUT 73 2,070,683 $642.7 millionOR 62 1,158,506 $627.8 millionNM 45 790,300 $241.6 millionOK 44 1,193,819 $390.1 millionHI 33 879,246 $855 millionID 30 510,346 $128.2 millionAK 13 184,096 $55.2 millionND 10 305,945 $85.7 millionSD 7 82,233 $32.2 millionMT 6 655,631 $135.2 millionWY 3 34,530 $19.5 million

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14 | February 1, 2013

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Q+A

Steven Schultz

Mortgage Observer Weekly: How did you get your start in the industry?

Steven Schultz: I’ve been part of bou-tique, family-owned businesses in commer-cial real estate for more than two decades, having launched not only Helios in 2009 but also the Schultz Organization, a com-pany co-founded in 1990 as the industry was working through the carnage of the sav-ings-and-loan crisis. And I helped to grow a development firm called Pyramid Proper-ty Partners. In all, I’ve handled a little more than $8 billion in real estate transactions so far.

Helios Capital Advisors recently joined with Newmark Grubb Knight Frank’s capital markets advisory. How did that opportunity come about?

My team and I had maxed out the po-tential of a boutique business. We were ex-tremely successful, but our client base was generally limited to a region of New York, New Jersey, Pennsylvania and Connecticut; it was time for us to expand our activities on a larger, national stage. For advice, I went to my longtime friend David Simson, NG-KF’s chief operating officer in New Jersey, and we realized that this growing desire at Helios for a larger platform fit precisely the kind of opportunity that NGKF was looking for as it sought to strengthen its global capi-tal markets business. It felt right, and even-tually we made the move.

How will the firms benefit from this move?

My team has achieved its expansion goal by tapping into the most advanced global platform in the commercial real estate in-dustry, and NGKF has filled a lucrative niche in its capital markets program by absorbing our already-established small-balance loan transactions business to trade nonperform-ing loans of $50 million or less. We also have the same philosophy in the investment sales market, but now we can grow and compete for bigger-balance deals.

How has your role changed?

My role has expanded to being the nation-al head of loan sales as well as head of capital markets for New Jersey.

It’s exciting to apply my experience in helping the firm to build the best capital mar-kets group in the nation.

What kind of deals are you busiest ar-ranging at the moment?

The deals we are arranging at the time are both loan portfolio transactions [and] single-asset sales. Since my team came over, in ad-dition to existing NGKF team members who joined my team, we have closed and have se-cured around $75 million in loan sale/invest-ment sale opportunities.

What is your forecast for 2013?We project $500 million to $1 billion of

loan sales volume nationally in 2013, and $100 to $200 million in investment sales here in New Jersey.

We know you were involved in the ren-ovation of the Count Basie Theater in Red Bank, N.J. Can you tell us how you became involved and share something about that experience?

The Count Basie project was very spe-cial to me. A few friends who knew of my background in real estate and development asked me to get involved, and I jumped at the chance. I love giving back to the community, and here was an opportunity where my skills and experience put me in a unique position to add value to the project. Before long, I was named chair of the committee charged with completing the $16 million restoration and renovation, and to date we have completed $10 million of the project. The Basie is a gem, and I am very proud and honored to be able to serve in its preservation.

Steven SchultzExecutive Managing Director, Capital Group, Newmark Grubb Knight Frank