Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 09 April 2019

Mortgage Lender 3650 REIT Funds $800Mln in Year 1; Aims for $2.5Bln in 2019

Mortgage lender 3650 REIT funded about $800 million of loans in its first full year in business and expects to more than triple that, to $2.5 billion, this year. It differentiates itself by providing white-glove servicing to borrowers, promising to be with them and work with them for the life of their loans.

Commercial Real Estate Direct Staff Report

Mortgage lender 3650 REIT funded about $800 million of loans in its first full year in business and expects to more than triple that, to $2.5 billion, this year.

That's a tall order, but based on the finance company's existing pipeline of loans, it's more than likely to hit the mark.

The company was founded last April by Jonathan Roth, who previously was president of Canyon Partners Real Estate, and Justin Kennedy and Toby Cobb, who previously had founded developer Grass River Property. The trio's goal was to create a lending platform that truly focused on meeting borrower needs.

To that end, it's senior management is populated by seasoned servicing professionals, including Jack Cohen, who for 25 years had led Cohen Financial, where he oversaw the growth of the company's loan servicing portfolio to $35 billion; and Peter LaPointe, who before joining Grass River in 2013 was president of LNR Property's servicing division. Both Cohen and LaPointe were named managing partners. Also part of the company is Henry Bieber, head of loan servicing, who previously was head of Cohen Financial's servicing and asset management operation.

The company also has eliminated what it calls "nuisance" fees, those pesky charges that are particularly common in the CMBS conduit world. CMBS borrowers have complained that they'll get a $35 invoice, for instance, when they request a $10,000 release from a cash reserve account to fund a tenant improvement.

"We're doing something different, we've eliminated all nuisance fees," said Cobb, who with Kennedy oversees the company's long-term lending efforts. "We engage with the borrower for the life of the loan," he added, noting that the 3650 REIT name is derived from the idea that the company would stay with the borrower for the life of a loan, which can be up to 10 years.

Added Kennedy: "We create a virtuous cycle on day one due to our relationship with the...


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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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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