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Tuesday, 09 November 2010

CapitalSource Ramps Up Commercial Mortgage Lending

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Commercial Real Estate Direct Staff Report

CapitalSource, which like most lenders scaled back its commercial mortgage operation during the market's downturn, is ramping it up.

The Chevy Chase, Md., lender, which had continued to write loans through the downturn, relied on its headquarters and New York offices to do so. It's now opened up shop in Los Angeles and hired Vishal Vanjani, a former lender with Natixis Real Estate Capital, to oversee commercial real estate originations on the West Coast. It is expected to write roughly $500 million of real estate loans this year and increase that volume next year.

Vanjani, who was named director, reports to Chris Kelly, managing director of CapitalSource's real estate group.

"As market conditions have improved, loan volume has started to come back, and with it the need for lenders with local market knowledge and relationships," Kelly explained. He added that the company's Los Angeles office gives it the ability to "finance solutions to sponsors in the region."

CapitalSource isn't your typical conduit lender, nor is it an opportunistic lender. Instead it focuses on providing relatively short-term loans, with terms of three to five years, to fund stable assets of all property types, discounted pay-offs of existing loans, loan acquisitions and in some cases value-add property investments. For instance, it will provide debt for a class-A property in a strong location that is expected to see a substantial bump up in rental income for one reason or another.

With banks more willing to dispose of their unwanted loans or negotiate their discounted pay off, demand for financing for those endeavors has increased. CapitalSource hopes to tap that demand.

As it has historically, the company sticks to the middle market, providing loans of $10 million to $50 million each that represent 60-70 percent of collateral value.

The company's effort to step up its presence in the market is the result, in large part, of the added liquidity in the commercial mortgage business. With other lenders more willing to provide mortgages, the risk that its short-term loans won't be refinanced has diminished sharply.

CapitalSource two years ago acquired certain assets of Fremont Investment & Loan and 22 bank branches in Southern and Central California. The company subsequently formed CapitalSource Bank, giving it a reliable and relatively low-cost funding source.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



Copyright © 2010 Commercial Real Estate Direct www.crenews.com

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Mortgages/Financing (MOR)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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