Business Lines
Real Estate Debt Business
We acquire, originate and structure
senior and subordinate debt investments generally secured by
commercial properties, which we finance primarily by issuing
CDOs. Our management entered this business to capitalize on
its significant real estate equity investment experience and
capital markets expertise.
Through our origination offices
located in New York, NY, Dallas, TX, and Los Angeles, CA, we
have built a franchise with a reputation for providing capital
to high quality real estate investors who want a responsive
and flexible balance sheet lender. Given that we are a lender
who does not generally seek to sell or syndicate the loans we
originate, we are able to maintain flexibility in how we structure
loans that meet the unique needs of our borrowers. For example,
we can make a loan to a borrower that can be increased in size
over the loan term if the borrower increases the value of the
collateral property. Typical Commercial Mortgage-Backed Securities,
or CMBS, and other conduit securitization lenders cannot generally
provide these types of loans because of constraints within their
funding structures and because they usually originate loans
with the intent to sell them to third parties. Additionally,
our centralized investment organization enables senior management
to review potential new loans early in the origination process
which, unlike many large institutional lenders with several
levels of approval required to commit to a loan, allows us to
provide a high degree of certainty to our borrowers that we
will close a loan on terms substantially similar to those initially
proposed. We believe that this level of service has enhanced
our reputation in the marketplace and will generate increasing
business from repeat customers.
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