JANUARY 2013 | $10Making Waves: European Banks Exit, Asian Banks Sail OnQ&A The M.O. Talks With M&T Banks Newly Promoted Peter DArcy285 Madison AvenueThe SL Green Financing Behind RFR Holdings BuyIn-Depth LookBanks Weigh in on Their 2012 Results, but Are They Satised?Steins LawJoshua Stein on Prepping for the Next BoomKnickerbocker HotelOnce Home to Italian Tenor Enrico Caruso, the Site Has a Mortgage History That SingsTMO.0113.CS3.COVER.indd 1 1/3/13 7:24:43 PMColumbus Square500,000 Sq. Ft. Retail Condominium Portfolio$280,000,000 New York, NYB&L Portfolio25 Buildings Multifamily Portfolio$160,000,000New York, NY350 Park Avenue585,000 Sq. Ft. Ofce Property$300,000,000New York, NY568 Broadway350,000 Sq. Ft. Ofce Property$200,000,000New York, NY1 Battery Park Plaza New York, NY 10004 | 212-972-3600 | www.meridiancapital.comIn 2012, Meridian proudly advised on nancing for the following transactions:220 Water Street134 Units Multifamily Property$52,000,000Brooklyn, NYHarrison Station275 Units Multifamily Property$49,950,000 Harrison, NJWest 14th Street61,000 Sq. Ft. Mixed-Use Property$55,000,000New York, NYEastgate Tower186 Rooms Hotel Property$50,000,000New York, NYSteelworks Lofts110,000 Sq. Ft. Mixed-Use Property$28,400,000 Brooklyn, NYLexington Avenue10,130 Sq. Ft. Retail Property$17,700,000 New York, NYThe Berkshire93 Units Multifamily Property$33,000,000Hoboken, NJKings Highway60,800 Sq. Ft. Retail Property$20,200,000Brooklyn, NYCommercial Mortgage Observer - YE Review .indd 1 12/19/12 4:16 PMUntitled-26 1 1/2/13 11:13:25 AM321 West 44th Street, New York, NY 10036212.755.2400Carl GainesEditorJotham SederstromEditorial DirectorAlessia PiroloSta WriterSam ChandanJoshua SteinColumnistsMichael StolerContributorNoam S. CohenCopy EditorBarbara Ginsburg Shapiro Associate PublisherEd JohnsonProduction and Creative DirectorPeter LettrePhoto EditorChristie WrightDesignerLisa MedchillAdvertising ProductionOBSERVER MEDIA GROUPJared Kushner PublisherMichael AlbanesePresidentBarry LewisExecutive Vice PresidentRobyn ReissVice President of SalesMichael WoodsmallDirector of Development, Real Estate TitlesZarah BursteinMarketing ManagerMark PomerantzControllerTracy RobertsAccounts Payable ManagerIan McCormickAccounts ReceivableFor real estate advertising, contact Robyn Reiss at rreiss@observer.com, or call 212-407-9382.For nancial advertising, contact Barbara Ginsburg Shapiro at bshapiro@observer.com, or call 212-407-9383.To subscribe to Mortgage Observer Weekly, The Mortgage Observers companion PDF delivered directly to your inbox every Thursday, sign up at commercialobserver.com/mortgage-observer-weekly-signup January 2013 / ContentsEditors Leer 02News Exchange 05Mortgage originations, note sales, investments and industry researchu SL Green Provides Loan for RFR Madison Avenue Buyu CMBS Delinquency Rate Unchangedu From the VaultRe-invented, Againu The Largest Loans of the MonthIn-Depth Look 08Lenders Fairly Satised with 2012 Resultsby Michael Stoler Scheme of Things 10Monthly charts of commercial real estate nancings in the boroughsSteins Law 12On the Verge of the Next Boomby Joshua Stein The Basis Point 13The State of the Banks: At First Blush, an Improving Big Pictureby Sam ChandanWork Force 14Hirings, promotions, defections and appointments 2012 in Review 16The markets were up and down, but commercial real estate deals marched onPower Prole 18CBRE Debt & Equity Finance by Carl GainesMaking Waves 22As the euro zones woes persist, German and other European lenders head back home, while Asian lenders sail forward in their placeby Alessia PiroloQ&A 26Peter DArcy from M&T Bankby Damian GhigliottyCulture 30Holiday parties! The Sked 32Our picks for the months must-attend eventsCover Photo by Michael Nagle06 1816108TMO.0113.ContentsCS3.indd 1 1/3/13 7:19:20 PM2Editors Letter /January 2013For our January 2013 issuewhich Ill be taking on the road to the Commercial Real Estate Finance Councils January Conference in South Beachit seemed ftting to take a look both back and forward. With 2012 in the rear view mirror, we decided to take stock of the yearmost notably in our 2012 timeline, on page 16. With so much volatility in the markets, thanks to events like Novembers presidential election or Junes dismal jobs report, it says something about New Yorks commercial real estate market that deals large and small continued to happen at a pretty fast clip.The year also saw the continuation of a bunch of trends, one of which Alessia Pirolo delves into for her feature on page 22that being a retreat by German banks in the U.S. commercial real estate market and the Asian banks that have moved in.For the Power Profle this month, I got to know Keith Braddish and Mark Fisher, from CBREs debt and equity fnance team. They shared a lot of the trends that theyve seen lately, like the re-emergence of fnancing for some recently verboten asset classes and forms of fnancing and the prevalence of mezzanine fnancing. And, lastly, Damian Ghigliotty met with M&T Banks Peter DArcy, who was recently promoted to regional president for New York City. Peter shared details about the scope of his new role at the bank as well as his take on CRE lending now, as opposed to several years ago.A Look BackTMO.0113.EditorsLetterCS3.indd 2 1/3/13 7:27:51 PMA city like no other deserves amultifamily lender like no other.With decades of experience, Chase is New Yorks go-to source for multifamily lending.LOW F E ES | GR E AT R AT ES | S T R E A ML I NE D P R OCES SCall 866-310-2490 or visit www.chase.com/MFLCredit is subject to approval. Rates and programs are subject to change; certain restrictions apply.Products and services provided by JPMorgan Chase Bank, N.A. #1 claim based on 2011 FDIC data.2012 JPMorgan Chase & Co. Member FDIC. All rights reserved.Theres no city quite like New York. And theres no company quite like Chase when it comes to serving the citys multifamily nancing needs. Offering great rates and low fees in a fast, efcient process, Chase brings New York deep market knowledge and industry expertise thats second to none. Work with the nations #1 multifamily lender on your next purchase or renance transaction on a 5+ unit apartment building. Give us a call today.Untitled-12 1 12/31/12 1:20:33 PM4SpotlightNews Exchange /January 2013285 Madison The CMBS delinquency rate held steady at 9.71 percent in December 2012, but data projec-tions suggest further improvement is ahead, as special servicers continue to resolve nonperform-ing loans and new deals dilute nonperformers, ac-cording to Trepp. The rate for U.S. CMBS loans regained stability in the second half of 2012 after a period of volatili-ty caused primarily by the high number of fve-year loans securitized in 2007, which pushed the rate to record highs when their maturity dates elapsed. Despite the fact that the delinquency rate has leveled of once again, its been a spectacular run for the CMBS industry, said Manus Clancy, se-nior managing director of Trepp. Not only did the world not end on December 21, but spreads have plummeted since June, its become easier for bor-rowers to refnance, research groups are lifting their estimates for 2013 issuance and delinquency rates are well below their all-time highs. Industry researchDecember CMBS Delinquency Rate UnchangedGot a news tip? Email Alessia Pirolo at apirolo@observer.com or call (212) 407-9308.$140 M.amount of the first mortgage sL Green realty co. provided to rFr holding Sl green provides loan for RFR Madison Avenue Buy RFR Holding has acquired 285 Madison Avenue for $189 million in a joint venture with a real estate investment fund. The seller is marketing communi-cations company WPP Group, which had used the building as the headquarters for Young & Rubicam.Sources confrmed to The Mortgage Observer that SL Green Realty Co.which owns 3 Columbus Cir-cle, where Y&R will moveissued RFR about $225 million in debt for its purchase of the building. This included a frst mortgage of roughly $140 million and an additional $85 million in mezzanine debt.RFR declined to comment about the fnancing, but it said in a release about the acquisition that $50 million in capital improvements are planned for the 513,000-square-foot, 26-story building, which is cur-rently vacant.Despite reports to the contrary, this isnt a loan-to-own situation. And, as for its future or any potential repurposing, the building is expected to remain an ofce property, which RFR principal Aby Rosen all but indicated in the release about the acquisition.We are delighted to have acquired a well-locat-ed asset such as 285 Madison, which can beneft from RFRs long history of retroftting ofce prop-erties to their full potential, Mr. Rosen said. We are confdent that after we perform a total building renovation, consistent with the RFR imprimatur, the building will attract a credit-worthy tenancy for long-term leases.Also valuable in the acquisition is the retail com-ponent at 285 Madison Avenue. It includes about 30,000 square feet of space, with 150 feet of street frontage.The building joins an RFR stable of properties that includes 345 Park Avenue South, the Seagram Building at 375 Park Avenue and nearby 275 Madi-son Avenue. The fnancing that SL Green provided is for a period of three years, with an optional short-term extension. It closed on December 14, 2012.CBRE represented Y&R in the $190 million sale, while Newmark Grubb Knight Frank rep-resented SL Green, which declined to comment.The ad agency will take more than than 370,000 square feet, across 11 full foors, at 3 Columbus Cir-cle, when it moves there to anchor the building this year. This includes a condominium interest across foors three through eight and an additional 20-year lease for foors nine, 10, 18 and 19. Photo by PEtEr lEttrETMO.0113.NewsExchangeCS3.indd 4 1/3/13 7:27:35 PMDelivering on the AssignmentSince the formation of HKS Capital Partners LLC on April 1, 2011, we have closedover $2 Billion in transactions, and we would like to thankall of our clients and lending relationships.We look forward to a prosperous future! 127 West 24th Street, 2nd Fl oor, NY 10011(212) 254 1600 www. hkscapi tal partners. com Debt Equi t y Mezzani ne Const ruct i on Bri dge Pri vat e Joi nt Vent ures TCAPITAL PARTNERS LLC.HKSUntitled-29 1 1/2/13 11:40:38 AM6News Exchange /January 2013UpS & DowNSRe-invented, AgainFrom the vault1903-1958Construction of the Knickerbocker Building, at 1466 Broadway, begins in 1903, underwritten by an invest-ment group led by developers J.E. and A.L. Pennock. One year later, the group collapses and John Jacob As-tor IV steps in to complete the work. The Knickerbocker Hotel opens in 1906. Famous residents include leg-endary tenor Enrico Caruso. In 1921, Vincent Astor turns the hotel into offices, and between 1940 and 1959 the building is home to Newsweek magazine1958-1969Public records mention a mortgage, dated 1958, provided by Massachu-setts Mutual Life In-surance Co. (founded in 1851 and still ac-tive today as MassMu-tual) to a company controlled by Harry Helmsley. One of the big-gest property-holders in the U.S., Mr. Helmsleys port-folio at one time included the Em-pire State Building, the Helmsley Palace, the Park Lane Hotel and the Helmsley Middle-towne Hotel. In 1969 the Metropolitan Life Insurance Co. provides a 10-year $1.4 million mortgage on the property.1969-1980sIn the early 1980s, Chase Bank provides a $6.6 million loan on the property. In 1986, previous mortgages are consolidated, and Mony Pen-sion Insurance Corp. holds a $45 million loan on 1466 Broadway. The MONY family of compa-nies would become wholly owned subsidiaries of AXA Financial in 2004.1998-2004Mr. Helmsley dies in 1997. One year later, SL Green Realty Corp. acquires 1466 Broadway and other properties, including the Graybar Building, for $165 million. In 2004, Lehman Brothers pro-vides a $56.6 million loan on the property.2000sIn 2006, Sitt Assett Management buys the building for $156 million, with a $115 million mortgage from Wachovia. One year later, on the eve of the financial crisis, the Dubai investment arm Istithmar World buys the building for $300 million to convert it back into a hotel. Lehman Brothers provides a $290 million mortgage. Af-ter the banks bankruptcy, the loan is assigned to the Danish bank Danske Bank. The hotel conversion project stalls.2012In February 2012, FelCor, in a joint venture with an affiliate of Highgate Holdings, purchas-es the hotel for $115 million. The acquisition is financed with a $65 million loan from Bank of America. A syndication that includes the Bank of Nova Scotia provides an $85 million con-struction loan to bring the Knickerbocker back to its former glory. CmBS According to a report in The Wall Street Journal, December 2012 was the busiest month in fve years for CMBS issuance, with one executive from investor and bond servicers Talmage quoted as saying that it is fying of the shelf.8 Spruce StreetPension fund TIAA-CREF is buying a stake in the Frank Gehry apartment building that values the tower at over $1 billion. The valuation is at a level never before seen for an apartment building in the U.S.toll BrothersThe luxury homebuilder saw proft for the quarter ending October 31 skyrocket to $411.4 million, compared with $15 million the previous year. Fiscal year 2012 net income hit $487.1 million, compared with $39.8 million for 2011.mPG ofce trustAccording to a report in The Wall Street Journal, MPG Ofce Trust may be losing its grip on one of its ofce propertiesthe 1.4-million-square-foot, 73-story U.S. Bank Tower in Downtown Los Angeles. The $260 million mortgage on the building is in danger of default, having been transferred to a special servicer.uBSOn December 19, 2012, the bank agreed to pay $1.5 billion to U.S., U.K. and Swiss authorities to setle Libor-related investigations, taking responsibility for the rigging of rates.hSBCIn mid-December, HSBC said that it had agreed to pay $1.9 billion to put to rest money-laundering charges. We accept responsibility for our past mistakes, said group chief executive Stuart Gulliver. We have said we are profoundly sorry for them.1466 Broadway8 Spruce StreetTMO.0113.NewsExchangeCS3.indd 6 1/3/13 7:27:56 PM7The LargesT Loans of The MonThTo receive a trial subscription to the Mortgage observer Weekly, please visit commercialobserver.com/ mortgage-observer-weekly-signupEvery Friday, our weekly email news-leter Mortgage Observer Weekly brings to your e-mail boxes stories on the most interesting deals across the country. Here are some of the largest deals we covered in December 2012.IN NEW YORK$465.9 MILLIonPlaza Hotel768 Fifh AvenueBorroWer: Sahara India PariwarLenDer: Bank of ChinaThe India-based conglomerate Sa-hara completed the purchase of a position in the Plaza Hotel with a to-tal valuation of $575 million. Bank of China provided the fnancing. Earlier in the year, the bank had invested in another trophy hotel in the city, ref-nancing the Mandarin Oriental Hotel in Columbus Circle for $170 million.$364 MILLIon1411 BroadwayBorroWer: Ivanho CambridgeLenDers: DekaBank and HSBC$320 MILLIon875 Third AvenueBorroWer: Global HoldingsLenDer: Bank of America$265 MILLIon315 Park Avenue SouthBUYer: SL Green bought the nonper-forming mortgageseLLer: BCN Development$230 MILLIon150 Charles StreetBorroWer: Witkof GroupLenDers: A syndication led by M&T that includes Wells FargoACROSS THE COUNTRY$214 MILLIonChina Basin Landing, San FranciscoBorroWer: J.P. Morgan Asset ManagementLenDers: DekaBank and HSBCIn December 2011, J.P. Morgan As-set Management acquired this 902,000-square- foot ofce complex from the California Public Employ-ees Retirement System for $415 mil-lion. The company will use some of the proceeds from the DekaBank and HSBC loan to retire a previous MetLife mortgage.$145 MILLIon11 Properties in FloridaBorroWer: CED Cos.LenDer: BankUnited$133.4 MILLIonWaters Creek at Montgomery Farm, Dallas, TexasBorroWer: PCCP, Trademark Prop-erty Co., Coventry Real Estate Advi-sors and Southern Land Co.LenDer: Prime Finance$56 MILLIonNine-Property Portfolio in Southern CaliforniaBorroWer: Universe Holdings DevelopmentLenDer: Freddie Mac785 5th AvenueTRANSACTIONS SPEAKLOUDER THAN WORDS83 deals for over $8Bcoast-to-coastthrough 2012DiscounteD Payoff Debt suborDination a/b notesinterest rate reDuction Maturity extension aMortization relief release froM Guaranty Project recaPitalizationroBert verrone (646) 201-4663 robert.verrone@ironhounDMGMt.coMchristopher herron (646) 201-4642 chris.herron@ironhounDMGMt.coMJohn Wood (646) 201-4685 john.wooD@ironhounDMGMt.coMroBert vernicek (646) 201-4686 robert.vernicek@ironhounDMGMt.coMWWW.ironhoundmgmt.comlet iron hound Be your advisor. We fix Broken mortgages of all sizes.$151MILLIONSecuritized Loan Interest Rate Reduction Maturity Extension$165MILLIONSecuritized Loan Amortization Relief Interest Rate Reduction$125MILLIONSecuritized Loan Debt Forgiveness Maturity Extension$3.2MILLIONBalance Sheet Loan Discounted Payoff Release of GuarantyMETROPOLITAN SqUARESt. Louis, MOCHICAgO PORTfOLIO Chicago, ILJAMES HOTEL Chicago, ILWILLOW OAKS APTS Memphis, TNTMO.0113.NewsExchangeCS3.indd 7 1/3/13 7:36:30 PM8In-Depth Look /January 2013As the nal hours and minutes of 2012 ticked down, a number of the leading bankers who provide real estate nancing were taking stock of 2012s results. A majority of those reached for comment conceded that they had reached or exceeded their expectations. Nevertheless, they said, with the year coming to a close, they must once again prepare to start from zero to reach new goals.With changes in estate taxes and the transferring of interests, coupled with the increase in capital gains and higher taxes set to begin this month, many of the local lenders had to postpone their holiday vacations to meet the year-end rush of nancing. In December, at holiday parties and other events, conversation often included mention of business having returnedalmost as if were back in 2007. Though the volume of nancing denitely rose in 2012, it didnt reach the CMBS levels of 2007. Wall Street investment bankers did not expect CMBS nancing to rise by nearly 50 percent from 2011, reaching nearly $50 billion of new issuance. Investment salesespecially sales of retail assetsaided CMBS lenders in reaching this level of nancing. The sale of Kings Plaza Mall in Brooklyn for $751 million, for example, was the largest commercial real estate sale of the year, as well as the biggest single trade sale in Brooklyn. Vornado Realty Trusts 32.4 percent a liate Alexanders sold the property to the Macerich Co., which also entered into an agreement with Vornado to purchase the Green Acres Mall in Valley Stream, Long Island, for $500 million. One of the largest nancing transactions of the year took place in November, when a partnership that included Vornado Realty Trust completed the $950 million renancing of the 2.1-million-square-foot o ce building at 1290 Avenue of the Americas. The 10-year interest-only loan bears interest at a rate of 3.34 percent.REITs and other publicly traded real estate nancing companies were instrumental in providing nancing last year. In October, Starwood Property Trust and Starwood Capital Group announced the co-origination of a $475 million rst mortgage and mezzanine nancing for the acquisition and redevelopment of a retail building in Times Square at 701 Seventh Avenuethe Times Square Gateway Center. Later in the month, the entity sold a 25 percent participation in the nancing to Vornado Realty Trust. One of the most sought-out real estate investments in 2012 was residential real estate. Lenders from every avenue of the industry provided nancing at record low rates, in many instances as low as 3 percent. Perhaps the largest residential nancing took place in November, when New York State Gov. Andrew Cuomo, New York City Mayor Michael Bloomberg and U.S. Housing and Urban Development Secretary Shaun Donovan announced the closing of a $621.5 million loan to renance Co-op City in the Bronx. The federal, state and city governments announced that their respective agencies had collaborated to jointly insure the mortgage loan made by Wells Fargo Bank, which will renance the complexs existing debt at historically low interest rates. Under the terms of the loan, Co-op City, which rst opened to the public in 1968 and is the largest Mitchell-Lama co-op, will remain aordable to residents for 35 more years.The Wells Fargo loan to RiverBay Corp., which controls Co-op City, is the largest ever insured under HUDs 223(f ) program. The program protects lenders against losses on mortgage defaults at multifamily rental properties. The Co-op City loan marks the rst time the program has been applied to a co-operative development. The Mortgage Insurance Fund of the State of New York Mortgage Agency and New York Citys Housing Development Corp. will provide credit support, with $55 million and $15 million coverage of the loan, respectively.Meanwhile, regional savings and commercial banks were very active in providing nancing for multifamily rental properties in the region. Lendersincluding New York Community Bank, Investors Bank, Capital One, Signature, Dime Savings Bank of Williamsburgh, Oritani Financial, M&T and Sovereignhelped to provide in excess of $20 billion in nancing. Joining the ranks of lenders in the multifamily nancing market in 2012 were Peoples United Bank and First Republic Bank. During their rst full year of providing nancing for commercial real estate, Peoples United Bank provided nearly $300 million in nancing. John Costa, executive vice president, who joined the bank in July, expects the bank to provide more than $1 billion in nancing in 2013.M&T Bank, one of the most active lenders in the market, reached its nancing goals in 2012. We were, and continue to be, active in providing nancing to seasoned, established real estate investors, Peter DArcy, regional president for New York City, told The Mortgage Observer. And we provided both construction nancing for rental and low-leverage condominium developments. S y n d i c a t i o n s of lenderswhich included Bank of America Merrill Lynch, M&T Bank, Wells Fargo, Capital One, Sovereign/Santander and JPMorgan Chasewere active in club deals for major transactions that included residential rental and condominium developments in Manhattan, the outer boroughs and the Gold Coast of New Jersey. And on the international front, foreign lenders like Westdeutsche ImmobilienBank, Eurohypo and ING Real Estate Finance (USA) reduced their exposure to nancing (see Alessia Pirolos article on this subject on page 22). As The Mortgage Observer mentioned earlier this fall, taking over for the lenders that have left the market are new players on Wall Street and international banks from areas outside Europe, as well as insurance companies and real estate nance companies.With the new year under way, all signs point to a continued increase in commercial real estate nancings, and potentially even more cause for celebration when it comes time to close out this current year. A comprehensive take on CRE finance trendsby Michael StolerLenders Fairly Satised with 2012 ResultsTMO.0113.CS3.InDepthLook.indd 8 1/3/13 6:45:27 PM Wells Fargo Bank, N.A. All rights reserved. MC-Learn more. wellsfargo.com/realestateWells Fargo closed the largest insured loan under HUDs (f) program to the owner, Riverbay Corporation, for the renance of Co-op City. Situated on acres, it provides , units of afordable housing in the Bronx. We know making an afordable housing project a reality requires a lot of pieces to come together and we are committed to working with you to build and maintain afordable housing in communities across the country today, and for years to come.Investing in the futureof afordable housing,,Largest insured loan under the FHA (f) programCo-op CityAfordable housing preservation of , units in the BronxCredit support fromState of New York Mortgage Agency and New York City Housing Development CorporationOversight byNew York State Homes and Community RenewalFannicMacFrcddicMacFHACMBSloansPortlolioloansWarcLousclincsMC-5283 Mortgage Observer_10.25x12.25.indd 1 12/21/12 8:01 AM Untitled-3 1 12/26/12 10:30:54 AMAFEB14TH ST10Scheme of Things /January 2013 Monthly charts of commercial real estate financings across New York CityThe beginning of an end-of-the-year rush is evident in The Mortgage Observers chart data for October and November 2012. Last month, Kramer Levins Jay Nevelof and others predicted that anxieties over potential increases to capital gains taxes could end up fueling year-end sales. This seemed to be the case, as total sales for the four boroughs that were tracked jumped from 160 in October to 471 the following month.Mortgage Charts29775781228 OCT NOVREFINANCES OCT NOVPURCHASES Refnances vs. Purchases Top 10 Lenders Total Sales by Borough OCT NOVALL OCT NOVMAN. OCT NOVBRONX OCT NOVBROOK. OCT NOVQUEENSBANK OCTOBER 2012 BANK NOVEMBER 2012160412557374711316618193 Most Active ZIP Codes FinancingNew York Community Bank 41 New York Community Bank 88Signature Bank 33 Signature Bank 63JPMorgan Chase 26 M & T 59Dime Savings Bank of Williamsburgh 19 JPMorgan Chase 58Flushing Savings Bank 15 Dime Savings Bank of Williamsburgh 45Capital One 13 Astoria Federal Savings Bank 40Valley National Bank 10 Investors Bank 28United International Bank 10 NCB 28Astoria Federal Savings Bank 10 Sovereign Bank 25Wells Fargo 24ZIP CODE OCT 2012 ZIP CODE NOV 201211215 13 A 11211 3410003 11 B 10011 2311211 11 C 10065 2211205 10 D 10024 2211354 10 E 11101 20F 11201 20DData courtesy ofCThe rush was on for refnances and purchases as 2012 drew to a close. Afer declining from September to October, both categories grew in November 2012.Williamsburg reigned supreme in November 2012, with a total of 34 CRE fnancings. Not far behind, though, was a swath of Chelsea, where deals abounded like the JPMorgan Chase loan that funded Sabet Groups purchase of 338 West 17th Street.Across the four boroughs studied, sales more than tripled coming into November 2012, as investors looked to close deals by the years end.Brillo Pads: Brooklyn Heights saw a ton of activity in November 2012, thanks in part to Alloys purchase and planned redevelopment of 185 Plymouth Street. A source confrmed that Bank of America had provided a $12.8 million loan that will enable the developer to transform the former Brillo warehouse into eight large lofs and two new penthouses. The refnancing of a portfolio of properties owned by Stellar Management helped to keep New York Community bank at the top of the lenders providing CRE loans that closed during November 2012. Embassy House, at 301 East 47th Street, received a new $104.6 million loan and was the largest in the bunch. TMO.0113.CS3.SchemeOfThings.indd 10 1/3/13 6:49:42 PMCommunity lending expertise with a personal touch.Flushing Bank is a trade name of Flushing Savings Bank, FSB.At Flushing Bank were focused on exceeding your goals. Comprised of experienced lenders with deep market knowledge, Flushing Banks Real Estate Lending team is ready to help you with the perfect real estate mortgage solution. As a well-established community lender, weve provided credit to a diverse group of customers helping them to quickly and efciently achieve their goals. Call us today and let us make your real estate dream a reality.144-51 Northern BoulevardFlushing, NY 11354 800.581.2889 www.FlushingBank.comBronx, NY48-Unit Multifamily$4,000,000Brooklyn, NY120-Unit Multifamily$5,750,000Brooklyn, NY36-Unit Multifamily$2,000,000New York, NYMixed-Use$4,000,000New York, NY52-Unit Multifamily$6,500,000Brooklyn, NY36-Unit Multifamily$2,100,000FB Real Estate Ad Mort Observer5.indd 1 8/30/12 10:31 AMUntitled-3 1 12/26/12 10:29:23 AM12The M.O. Columnists /January 2013Steins LawJoshua SteinOn the Verge of the Next BoomHere we are, looking back at the year 2012, well into the next boom in commercial real estate fnancing. It hasnt peaked yet, but it seems to be accelerating. And this time, the acceleration feels faster than the last time around. At least in New York City, were largely back to where we were before the fnancial crisisand we got there rather quickly.Should we expect another fnancial crisis around the corner, sooner than we might expect, because maybe the cycles move more quickly now? If I knew the answer to that question, I wouldnt be practicing law.Plenty of lenders large and small have piled back into the market, willing to back names they know, but mostly on a more conservative basis than in the years just before the 2008 fnancial crisis. The availability of money and the continued credibility of New York City have driven values ever skyward, at least for quality product. Virtually all the stalled condo development projects that terrifed everyone in 2008 and 2009 have found new capital and a path to completion, though a slightly growing handful remains.Yet another year of absurdly and historically low interest rates has helped drive down cap rates and drive up values, even in an environment where ofce rents have hardly been spiking. Speaking of ofce rents, we all know about the relatively low deal volume and lack of ofce tenant enthusiasm in 2012. What was particularly notable was how readily some large Downtown ofce users found temporary space in Midtown after Superstorm Sandy, suggesting that the market has more extra space than perhaps is recognized.On the residential side, like 2006 all over again, we see lots of new development, focused in the high-end condo residential market, and, to a signifcant degree, high-end multifamily rentals as well. We see very little new low-end or medium-end anything. Its a high-end world, at least in Manhattan and, to a large degree, to the extent that development is occurring, in other boroughs.Development is so difcult, and land is so expensive, and so many residential buyers (particularly foreign buyers) have so much money that perhaps high-end is the only end reasonably feasible for new development projects right now. One wonders whether it really needs to be that way.Should the city government do something about this problem? Can the government fgure out a way to encourage more varied types of development, at lower price points? What can the city do?Major real estate development already has the beneft or the burden of multiple layers of municipal involvement, starting with the zoning ordinance, the building code and other codes, and continuing with layers of process, environmental review and community involvement (delay, cost, platforms for the NIMBYs) for any substantial project.In addition, to be feasible and competitive, producing a proft for the developer, a project often needs to qualify for tax abatements and sometimes favorable subsidized or government-sponsored fnancing. Though these programs seek to spur development, once the marketplace for developable land expects them, any developer that doesnt get the beneft of them probably will have trouble competing. So qualifcation for those programs becomes a gating item for anyone who wants to put together a successful development project in any market where those programs are available. Net result: an even larger governmental role in the development process, and higher bids than otherwise for parking lots and other development sites.If the municipal government wants to do something about the development process to encourage a broader range of new product, probably with a focus outside Manhattan, the usual instinct consists of enacting some new program to layer on top of all the existing programs to motivate developers to build whatever type of new construction we want to see. That approach, though familiar, would just further complicate a development process that already seems amply complicated and governmental.It might make more sense to fgure out how to uncomplicate that process, making it easier to build new projects, with greater fexibility, more quickly and in more areas of the city. This might involve revisiting the scope of all the legal and regulatory burdens on the development process, starting with zoning and some of our assumptions about how buildings should be built.The city has started that process with rezoning in the boroughs, starting to streamline the permitting process, taking more of it online and asking questions about minimum apartment sizes. The process still has a long way to go, ideally in a way that sets simple and bright-line standards and expectations and minimizes the need for extended interaction with municipal authorities.New York remains the place where everyone wants to be, even more the center of the world today than it was 20 or 30 years ago. People will keep coming here. Even with all the buildings that already exist, many quite old, we need more. One good resolution for New York City for 2012 might involve fguring out how to get more buildings more easily, and not just at the high end.Joshua Stein is the sole principal of Joshua Stein PLLC. The views expressed here are his own. He can be reached at joshua@joshuastein.com.TMO.0113.CS3.Columnists.indd 12 1/3/13 6:43:44 PM13 January 2013 / The M.O. ColumnistsThe Basis PointSam ChandanBy almost every observable metric, the American banking system will enter 2013 with its strongest balance sheet position since before the fnancial crisis. Marginally higher revenues and shrinking loss provisions have pushed industry-wide net income to its best levels in six years. The improvement is signifcantly attributable to gains on the sales of assets and a general rise in non-interest income. It is also broad-based. More than half of all institutions reported higher net income in the third quarter while only one in 10 reported a net loss, the smallest share since early 2007.The banking systems balance sheet is growing, albeit slowly. As loan demand has picked up among well-qualifed borrowers, net lending activity has increased. Progress is necessarily slow going. In keeping with a mixed economic picture and the formidable regulatory environment, underwriting standards are easing slowly. Not every commercial or individual borrower who merits credit can obtain fnancing, but the magnitude of this inefciency is moderating with some consistency across large markets.While quarterly statistics on bank failure still garner feeting attention, the systemic relevance of recently shuttered institutions has diminished over the last two years. The tally of banks on the FDIC watch list remains elevated, but the 694 problem institutions identifed as of the third quarter account for less than 2 percent of assets in the banking system. For large markets like New York, the failure of 51 banks nationally in 2012 has been immaterial to the direct availability of credit in support of large commercial real estate transactions. Only one of the failed banks had more than $1 billion in assets; not one was headquartered in New York.So is the crisis over for domestic banking? For many lenders, including smaller regional and community banks, income growth is lagging the headline trend. Saddled with small-balance loans backed by assets that have been slower to recover lost value, and with a high rate of recidivism on modifed loans, these institutions face a much longer road to normalcy. The same market characteristics that have weighed on the recovery of their legacy balance sheets are limiting opportunities for new lending activity. For some community banks, the productivity of their capital will not rise fast enough to ofset higher reserve requirements. Banks regulatory uncertainty will increasingly give way to explicit regulatory requirements in 2013, with the result that the drivers of consolidation among The State of the Banks: At First Blush, an Improving Big Picture the smallest institutions will shift away from unmanageable distress and toward changing cost structures. In some tertiary markets, that augurs diminished access to consumer banking services, a deleterious consequence of otherwise well-intentioned policymaking.Across institutions of all sizes, factors external to the banking system continue to pose a substantial threat. The drawdown in loan losses that has contributed to rising incomes depends on an improving economy and rising asset values. As the fscal clif debate has demonstrated, we may be our own worst enemies in this regard. Whether as a result of Washingtons impishness in addressing the budget imbalance or global shocks stemming from sovereign indebtedness and recession in Europe, the economy still faces unpredictable headwinds.For some larger banks, this years most serious challenges will result from their own staggering breaches of trust. The Libor scandal has been of large banks own making, and it hints at systematic failures in accountability that policymakers may prove eager to address. Well in excess of $1 billion in fnes has deservedly been levied against high-profle international institutions thus far. Some banks have cut bonuses and bolstered reserves in anticipation of sanctions that will rival the residential foreclosure abuse settlement.Renewed calls for active regulationboth abroad and in the Senates reconstituted and re-energized Banking Committeemay well lead to much higher long-term costs for fnancial intermediaries large and small. This year will see the Consumer Financial Protection Bureau come to life as it moves from last years study phase to active engagement. Well-funded, and with a broad mandate to interpret its protective function, its implications for the banking sector loom large. The potential for seismic shifts in 2013 will play out alongside other cyclical and secular changes, ranging from a new Consumer Complaints Database to the anticipated expiry of unlimited insurance coverage. Against a backdrop of modest economics and large fnancial institutions tarnished public perceptions, the adoption of consumer technologies that obviate visits to the teller and may erode the value of incumbent payment networks will become increasingly relevant. For small and large banks, interest rate risks assumed in an environment of artifcially low rates and pressure on net interest margins will only begin coming into focus. Beginning the new year on sounder footing, banks will have to work hard to keep their balance.Sam Chandan, Ph.D., is president and chief economist of Chandan Economics and an adjunct professor at the Wharton School. The views expressed here are his own. He can be reached at dsc@chandan.com.TMO.0113.CS3.Columnists.indd 13 1/3/13 6:44:27 PMBig changes are under way at Prudential Mort-gage Capital Co., where David Durning has been named president. Hell be David Twardocks suc-cessor when Mr. Twar-dock retires this spring.Mr. Twardock, who has been president of PMCC since 1999, plans to retire in April 2013. He joined Prudential in 1988 as an investment analyst. Mr. Durning, meanwhile, is currently senior managing director and head of originations at PMCC, based out of Chicago. A test of any business is its capacity to man-age change and maintain its competitive position over time, said David Hunt, CEO of Prudential Investment Management. Dave Twardock has worked tirelessly to lead the transformation of our mortgage business from a single line business sup-porting Prudentials general account to a full-ser-vice commercial mortgage company ofering a range of capital sources. Mr. Hunt added that Mr. Durning has demon-strated great leadership in a variety of roles, and is uniquely positioned to lead and continue to grow the mortgage business, particularly as the business ex-pands internationally.That international growth received a boost this past June, when PMCCs European arm completed its frst piece of fnancing since launching in Janu-ary 2012, originating a $108 million loan secured by a portfolio of four central London ofce properties and grocery-anchored retail in the town of Bath.Richard Kalikow, a real estate veteran with more than four decades of experience, has joined law frm Herrick, Fein-stein LLP as a partner.Herricks real estate group is known for its diverse talent and ex-ceptional range of services, said Irwin Kishner, chairman of the frms executive committee. Rich-ards arrival strengthens our existing practice, bring-ing great experience and a broad client base.Mr. Kalikow was previously a partner at Diamond McCarthy. The frm also recently hired Arthur Huh for its land use and environmental Group. Mr. Huh previ-ously served as a city planner in the Manhattan bor-ough ofce of the New York City Department of City Planning.Herrick works regularly with the dedicated public ofcials and staf of the Department of City Planning on ongoing matters, and we know that the staf members are of the highest caliber, said Mitch-ell Korbey, partner and co-chair of the land use and environmental group. We are grateful to be joined by one of those talented individuals and expect that Arthur will be a valuable team member.Ramius, the investment management subsidiary of Cowen Group, has named Michael Singer chief executive ofcer. We are very pleased to have Michael join us as we accelerate the build-out of the Ramius platform, said Peter Cohen, chairman and chief executive of-fcer of Cowen Group. I am very excited to be joining Ramius, which has a reputation for its talented investment teams, innovative products, outstanding client service and strong culture, Mr. Singer said. I look forward to working with the Ramius team to develop core and niche products, incubate new teams and ofer so-lutions to our clients in meeting their investment goals.Charles Pierce Jr. has joined Tarter Krinsky & Drogin as counsel in the construction practice group. His roles will include counseling clients in real estate, insurance and corporate law, sale and leasing of assets, and business formation and transition. Tarter Krinsky & Drogin is pleased to welcome Charles R. Pierce Jr. as a counsel in our expanding construction practice group. His solid litigation ex-perience is a valuable addition to our construction team, said David J. Pfefer, chair of the frms con-struction practice group. The privately owned real estate investment and management frm Harbor Group Internation-al has welcomed Carla Stoner as chief fnancial ofcer. Carlas extensive background in fnance and real estate positions her as an invaluable resource for the company, said Jordan E. Slone, chairman and chief executive ofcer of Harbor Group Internation-al. She brings a wealth of experience that perfectly aligns with our continued growth.Her responsibilities will include directing the companys fnancial policies and strategies and over-seeing all fnancial aspects of the company.Prior to joining the frm, Ms. Stoner was the ex-ecutive vice president and chief fnancial ofcer of CW Financial Services, a frm with a named spe-cial portfolio valued at over $150 billion. Mitchell Hochberg has been named president of the Lightstone Group, one of the largest private real estate owners in the United States. Mr. Hoch-berg will succeed Peyton Owen Jr.I am delighted to have someone with Mitchells reputation and expertise leading the frm, said David Lichtenstein, chairman and chief exec-utive ofcer of Lightstone. He has an impeccable record of accomplishments, running real estate or-ganizations focused on residential and hotel acquisi-tion and development for the past 30 years. We look forward to his leadership in the coming years.Though Mr. Hochberg only recently joined Light-stone, he has over 30 years of experience in real es-tate investment.Mike Mullen will be joining the board of di-rectors of Blackstone and IndCor Properties Inc.We are delighted to have someone with the depth of Mikes experi-ence join IndCor. He is one of the most experienced investors and manag-ers of industrial real estate in the United States, said Frank Cohen, a senior managing director in Black-stones real estate department. Mr. Mullen had previously served as the chief ex-ecutive ofcer and vice chairman of CenterPoint Properties.Blackstone is the largest real estate investor in the world, and IndCor is an integral part of its real estate strategy, Mr. Mullen said. I am looking for-ward to being part of the team that helps it continue to grow into one of the leading players in the indus-trial sector. United Realty Capital has appointed Craig Eastmond as managing director. He will be based in the companys New York ofce and report direct-ly to frm president Eli Verschleiser. We are excited to grow United Realty Capital with the addition of Craig Eastmond, said Mr. Ver-schleiser, who founded the frm. His successful track record of real estate transactions execution speaks for itself, and we feel his experience satis-fes important criteria as we continue to move our group forward. Mr. Eastmond was previously one of the found-ing principals of Allegiance Investment Advi-sors, a boutique private equity and structured fnance shop. 14Work Force /January 2013 Hirings, promotions, defections and appointmentsDavid DurningMike MullenRichard KalikowMitchell HochbergTMO.0113.WorkForceCS3.indd 14 1/3/13 6:57:23 PMWishing a Happy and Healthy Holiday Season to all our clients, lenders and real estate professionals who have contributed to another highly successful yearOver $2.5 Billion of Real Estate Loans Arranged in 2012Thanks to you all from GCP Capital Group, LLCPaul Greenbaum, Managing MemberMatthew Classi, Managing MemberAlan Perlmutter, Managing MemberAdam Brostovski, PrincipalGCP Capital Group , LLC60 Cutter Mill Road, Suite 600 Great Neck, NY 11021Phone: 516-487-5900 Fax: 516-487-5944www.gcpcap.comGCPJAN.indd 1 1/2/13 11:14:05 AMTimeline /January 201316January 4The European Union agrees to ban oil from Iran. Oil prices rise. January June february march april may2012 in ReviewThe year was tumultuous for the markets, as stocks reacted to global eventsfrom storms and the presidential election here at home to continued unrest in Europe. Despite it all, though, commercial real estate deals continued to buzz along, particularly in New York, with several high-profle projects fnding fnancing.MarchVornado refnances Manhattan Mall for $325 million. The new loan is at a rate of Libor plus 2.5 percent, and lenders on the syndication include Landesbank and JPMorgan.March 6Greek default fears prompt global markets to drop. The S&P 500 is down 20.97 points, while the Dow drops 203.66 points.aprilSL Green refnances 1515 Broadway, with a $775 million loan from Bank of China. The loan replaces a previous $447 million BOC loan that had been in place since 2009. HFF brokers the deal.aprilUkrainian billionaire Alex Rovt recaps 14 Wall Street in a deal that values the 1.1 million square foot property at about $300 million. June SL Green refnances its 100 Church Street property, after looking for fnancing for several months. Wells Fargo provides the 10-year loan, which has an interest rate of 4.7 percent. JuneWells Fargo also provides a $190 construction loan for the Related Companies 500 West 30th Street multifamily development.May 18Facebooks IPO freezes the Nasdaq.Julygreece: ArISMeSSINIS/AFP/gettyIMAgeS; FAcebook: eMMANUeL DUNAND/AFP/gettyIMAgeSTMO.0113.CS3.Timelines.indd 16 1/3/13 6:54:42 PMN0VEMEPHybrid Capital arranges a $71 million loan to renance EPICs Olympia House. Prudential Mortgage Capital Co. provides the loan, which is for seven years and interest-only.N0VEMEPWells Fargo closes its $621.5 million renancing of the Bronxs Co-op City, keeping the units there aordable for another 35 years. Its the largest ever insured under HUDs 223(f ) program.N0VEMEPM&T Bank provides a $153 million loan to renance Friedland Properties 888 Madison Avenue, home to a Ralph Lauren agship.17JUNE AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER1UNEWells Fargo also provides a $190 construction loan for the Related Companies 500 West 30th Street multifamily development.1UNE Stocks fall on a dismal jobs report. The Dow plunges 275 points.1UNE 5Spain asks the European Union for a bailout. The euro falls against the dollar.1UNE 2All three U.S. indexes fall roughly 2 percent on Moodys downgrade of major banks, as investors worry over slowed global growth.1ULYThor Equities renances 590 Fifth Avenue with a $100 million loana blend of mortgage and mezzanine debt. A Cushman & Wakeeld team arranges the nancing. 1ULYDeutsche Bank leads a syndicate of lenders that renances Brookeld O ce Properties 4 World Financial Center with $270 million of new debt. kU6U5TPrudential Mortgage Capital Co. Renances Newport Towera 1.1-million-square-foot tower at 525 Washington Boulevard in Jersey City, N.J.for $200 million. The loan to owner Bentall Kennedy is for seven years, at a 3.5 percent xed rate.kU6U5TBank of America is in talks to provide a $200 million loan to convert Carlton House, at 680 Madison Avenue, into luxury condos. JV partners Angelo Gordon & Co. and Extell Development agree to sell the 33,389-square-foot retail condo there to Vornado Realty Trust.5EPTEMEPDeutsche Bank leads the syndication on a $300 million construction loan for Extell Developments International Gem Tower, at 50 West 47th Street. The loan is for a two-year period, with the option of a one-year extension.0CT0EP Googles 3Q results post early and disappoint. The Nasdaq drops 31 points, while Google shares fall 8 percent.0CT0EP 25Hurricane Sandy comes ashore in New Jersey.0CT0EP JThe stock market reopens, after being closed for several days following Superstorm Sandy. The Dow and Nasdaq are down slightly, but overall there is little market impact. 0ECEMEPM&T Bank leads a syndication that provides a $230 million construction loan to build condos at 150 Charles Street, a site owned by the Witko Group.0ECEMEPIn a sign that condo development is picking up, Deutsche Bank provides $84.6 million for the purchase and conversion of 32-36 Bleecker Street in Noho. Stillman Development International, known for its luxury condo projects, is the developer.0ECEMEP 2U.S. stocks continue their downward slope as the scal cli approaches. 0ECEMEP JFiscal cliN0VEMEP 6President Obama is re-elected to a second term.N0VEMEP 7U.S. stocks fall 2 percent. The Dow is down 329.86 points, while the S&P 500 and Nasdaq also drop.N0VEMEP 7Greece passes austerity measures.JULYJEWEL SAMAD/AFP/GETTYIMAGESTMO.0113.CS3.Timelines.indd 17 1/3/13 6:54:57 PM18Power Profile /January 2013For CBREs Keith Braddish and Mark Fisherthe two elder statesmen in the rms capital markets debt and equity nance divisionthe more fractured lending environment that has arisen out of the collapse of the CMBS market and the concurrent economic malaise has meant the opportunity to dazzle and shine.The Mortgage Observer caught up with the pair on a blustery winter morning before the new year, to learn how recent shifts in lending have impacted their business, as well as how they expect 2013 to shape up. The shifts include a more complex structuring of deals and an increasing appetite, or tolerance, for nancings that were, until recently, considered taboo and unlikely to happenlike the Larchmont, N.Y., condo deal that Mr. Braddish is currently handling or an advising assignment that Mr. Fisher had for the mezzanine lender at 70 Pine Street. And gone are the days when deals were all priced at basis points that were within a few points of one another, no matter which lender you went to. We used to do a lot of CMBS business, which was right down the middle of the fairway, Mr. Braddish said. And now what were seeing is more structured nance business. This includes, he said, preferred equity and mezzanine debt, as well as recapitalizations. Structurally, CMBS cant compete now, Mr. Fisher added. Back in the day, the B piece would go for next to nothing. Now, if you CBREby Carl GainesBusiness As UsualThe heads of the CBRE Debt & Equity Finance team take us through what's trending now.TMO.0113.CS3.POWERPROFILE.indd 18 1/3/13 7:10:31 PM19Mark Fisher (right) and keith Braddish oF CBre. photos bymichael nagleTMO.0113.CS3.POWERPROFILE.indd 19 1/3/13 7:56:20 PM20 Power Profile /January 2013have to chop it up and syndicate it, youre nowhere near pricing of the insurance companies and the agencies.So the pair's opportunity to shine has come from a market they describe as fractured and inefcient. When its very easy and very efcient, its easy for a borrower to call up and go direct, but the displacement in the marketwith one guy at 4 percent and another guy at 3 percentthat makes our sell to a borrower a lot easier, Mr. Braddish pointed out. Mr. Braddish, an executive vice president, has been with the company for 13 years, always on the debt and equity side. He joined in 2000 from the New York and New Jersey ofce of HFF, where he worked from 1995 to 2000.He said 2000 was when the CMBS market really started to kick in and explained that business essentially hummed along, until 9/11when it paused for six to 12 months. Mr. Fisher, a senior vice president, joined about nine years ago. He had also worked for HFF in the mortgage banking frms Westport, Conn., ofce. The two knew each other from their shared time at the frm and currently have existing clients that they share. A lot of the business we work on, I would say its 60/40 our own individual business, Mr. Braddish explained. If I have a major multifamily deala rentalin New York City, Im most likely going to bring Mark in because thats his area of expertise. And we kind of pick and choose diferent team members based on their abilities, so there is a fair amount of interaction.Some of this interaction is via CBREs Deals Help/Capital Access programa proprietary software program that facilitates up-to-the-minute sharing of information with colleagues. It allows us to communicate with 100 other guys who do exactly what Mark and I do across the country, Mr. Braddish explained. Sharing information in this way is an additional way to add value when covering dozens of lending sources. The usefulness of the Deals Help/Capital Access program speaks to another important pointCBREs size. Take the case of Kane Realtys 420-unit Park and Market residential project in Raleigh, N.C. CBRE, as a group, fnanced it with mezzanine debt, Mr. Fisher said. Then, since selling the entire structure wasnt the best execution, it was split in half and each part was fnanced separately. Our guys out of Atlanta sold the multi, we fnanced the retail and then a group out of Hartford fnanced the buyer of the multi, Mr. Fisher recalled. So we fnanced the sale and we fnanced for the seller the ground-foor retail.The May 2012 deal combined Mr. Fishers expertise on the New York debt and equity fnance team with that of a constellation of other CBRE colleagues. These included Phil Brosseau Jr. from the Charlotte investment sales team, Malcomb McComb from the Atlanta investment sales team, Steve Hefner from the Charlotte debt and equity fnance team and Michael Riccio from Hartfords debt and equity fnance team. It was four disciplines, in four states, Mr. Fisher said. It was an amazing closing but we all cooperated. The conference calls were enormous, but it worked extremely well because we were all on the same team.In another recent fnancing, the group arranged a $120 million Freddie Mac loan in October 2012 for Glenwood Managements the Grand Tiera 229-unit apartment building at 1930 Broadway. According to public records, its a 10-year loan at a rate of 3.04 percent. Its interest-only for two years and has a 30-year amortization. The loan replaces $101.9 million in debt that was provided seven years ago by the New York State Teachers Retirement System.Mr. Fisher wouldnt comment on the terms of the loan, but said that it was probably one of the most competitive Freddie Mac loans that anyone has done so far.Mark is very diligent and he kept on following up with me and I didnt really have much interest until he found us a very low, long-term interest rate where it made some sense to refnance, said Gary Jacob, executive vice president at Glenwood Management Corp. If I had to describe Mark, I would say that he has great perseverance, hes diligent and has great creativity.Mr. Jacob also declined to comment on the terms of the fnancing, saying that it was against company policy to do so.For his part, Mr. Braddish facilitated a $36.7 million frst mortgage that West Coast debt shop Mesa West Capital provided to refnance Garden City Squarea 334,187-square-foot ofce complex at 711 Stewart Avenue in Garden City, N.Y. The loan, made in late 2011 to a joint venture of Angelo Gordon & Co. and Metropolitan Realty Associates, was short-term debt for the conversion of a mixed-use property into retail and ofce. Joe Farkas, president of Jericho-based Metropolitan Realty Associates, remembered Mr. Braddish, who also worked on a deal in the Riverdale section of the Bronx for the company, as being professional, with a high degree of attention to detail. He was clearly able to bring his relationships to bear in getting us really the greatest deals that were out there in both of those instances, Mr. Farkas told The Mortgage Observer.Mr. Braddish has also been busy with the aforementioned Larchmont condo deal, which illustrates how far the market has come. That is about a $70 million job, he said, adding that the sponsora large international frmis looking for a 50 percent loan and can sign a recourse agreement. The condos are being presold, with empty-nesters who are looking to downsize and avoid the areas massive property taxes in mind. As 2013 kicks of, the Larchmont deal, as condo construction, represents one obvious trend Messrs. Braddish and Fisher noted. Others include construction fnancing and the strength of the sponsorwhich has to include a measurable amount of liquidity.If someones going to lend you money to build, you have to really be very conversive in that market and in that disciplineso its very important who the sponsor is, Mr. Braddish said, when asked about requirements and expectations for construction loans. And have a strong statement, Mr. Fisher was quick to add. If youre experienced but dont have a strong statement and cant get them out of trouble, its a problem. So theyre looking for not only net worth, but liquidity, and they will check every property our clients own, because so many properties are underwater.The prevalence of mezzanine fnancing is another trend the pair has noticed. Keith and I are doing a lot of mezz debt, Mr. Fisher said. So what youre seeing is combinations of up to 85 percent fnancing through mezzanine debt on top of frst mortgage.This isnt unlike the 70 Pine Street deal, in which CBRE advised the mezzanine lender, AG Real Estate, on the acquisition, and later on its $200 million further investment in the Eastbridge Group portfolio. That initial mezzanine investment was concurrent with a $181 frst mortgage provided by UBS Real Estate Securities, according to data from Real Capital Analytics.With 2013 underway, Messrs. Braddish and Fisher said that theyre hopeful that the commercial real estate market will continue to improve.If I had to comment on 13, I would think that we anticipate a year similar to 12, Mr. Braddish said. Might it be a little bit more challenging than 12? It could be. I know that leasing volume and velocity is of a little bit in the city. But I think CBREwe have a lot of diferent platforms, a lot of diferent drivers of revenue, so where one group might be of a little bit, the other group picks up the slack. I think that were going to see some good momentum. TMO.0113.CS3.POWERPROFILE.indd 20 1/3/13 7:06:09 PM21 January 2013 / Power ProfileIf I had to comment on 13 I would think that we anticipate a year similar to 12PHOTO BY MICHAEL NAGLETMO.0113.CS3.POWERPROFILE.indd 21 1/3/13 7:06:30 PM22Feature /January 2013 As the euro zones woes persist, German and other European lenders head back home, and Asian lenders sail forward in their placeLast fall, a group of lendersincluding debt funds, insurance companies and international bankscompeted for the $80 million assignment to refnance Lehman Brothers Holdings On The Ave Hotel on New York Citys Upper West Side. Ultimately, the borrower tapped Singapore-based United Overseas Bank, which in the last two years has been behind several large ofce loans in New York and hotel loans on the West Coast, but which was essentially a newcomer to the citys hotel lending scene. UOB inked the deal during the same late November week when Bank of China closed a $465.9 million loan on the iconic Plaza Hotel, after having refnanced the Mandarin Oriental Hotel for $170 million earlier in 2012.In the frst half of 2012, international banks have become the leading hotel lenders in the United States major metropolitan areasNew York, Los Angeles, Chicago, Boston, D.C. and San Francisco. In fact, they accounted for 36 percent of hotel lending in the Northeast, according to data from Real Capital Analytics, a provider of commercial property information. Trophy hotels have traditionally been appealing for international lenders, which take pride in showing of the beautiful, and oftentimes famous, assets. Once upon a time, though, those lenders were European. Today the makeup of international lenders has shifted, and Asian banks seem to be the ones leading the chargenot just for hotels, but for several other high-quality asset types as well.WavesMakingby Alessia PiroloTMO.0113.CS3.Feature2.indd 22 1/3/13 6:44:41 PM23 January 2013 / Featureillustration by Zachary Montoya WavesMakingTMO.0113.CS3.Feature2.indd 23 1/3/13 6:45:00 PM24Feature /January 2013 In general, what weve seen is that European banks have not been as active this year as they have been historically, Mathew Comfort, executive vice president and co-head of the Hotel Investment Banking group at Jones Lang LaSalle told The Mortgage Observer. Mr. Comfort led the team representing Lehman Brothers in the On The Ave transaction.First burned by the U.S. mortgage crisis and then pressured by increasing banking regulations and euro zone woes, European banks have been reducing their investment in the U.S. for several years now. To some extent, Asian lenders are flling the gap. But while this might be true for properties such as iconic hotels and ofce towers in New York, in other markets the story is less clear-cut, several analysts and commercial real estate players said.International banks are focused on trophy assets, said Dan Fasulo, managing director at Real Capital Analytics, adding that Asian banks are particularly careful about their investments. Asked who will fll the gap left by German or Irish banks, Mr. Fasulo mentioned insurance companies and U.S. banks. He also noted that CMBS lenders are back again, and even the regional banks.In the last two years, between the third quarter of 2010 and the third quarter of 2012, German banks outstanding loans held in U.S. branches dropped by 37 percent, to a total of $7.2 billion, according to CMBS and mortgage data provider Trepp. Eurohypo, the real-estate lending unit of Commerzbank, and Westdeutsche Landesbank are among the banks that completely left the market. Irish banks including Anglo Irish Bank, Allied Irish and Bank of Ireland soon followed suit.Commerzbank has in place a run-down strategy for its commercial real estate assets, according to a written statement from Nils Happich, a spokesperson for the bank. The lenders global portfolio was reduced by 33 percent, from 84 billion euros as of December 31, 2009, to 56 billion euros as of June 30, 2012, and it aims to reduce it by an additional 40 percent by 2016. Just last May, Eurohypo sold loans for $740 million on 14 properties across the United Statesincluding the retail component of the ultra-luxurious condo 15 Central Park Westto Wells Fargo, Blackstone and U.S. Bancorp. In the United States, our CRE portfolio has already been decreased from 5 billion euros as of December 31, 2009 to 2 billion euros as of June 30, 2012, Mr. Happich continued in the statement. We will continue our run-down strategy in the next years.Increasing regulations from national governments, the Basel III ruleswhich will require banks to hold more capital against loans secured on commercial propertyand a still precarious euro zone situation have collided to create an uncertain future for European lenders. Four years after Lehman, the U.S. sees the end of lending crisis, asserted Mr. Fasulo, while Europeans still have many innings to go.However, there are some exceptions. The most obvious is German giant Deutsche Bank, which has a signifcant CMBS program and, according to Real Capital Analytics, was involved in sales and refnancings totaling $11.6 billion in 2012, up from about $5.4 billion in 2011. The $300 million refnancing of Extell Developments International Gem Tower and a $250 million acquisition loan on the ofce building Bank of America Plaza at 540 West Madison in Chicago are just a couple of the banks latest deals.Some much smaller players such as Germanys Helaba, Aareal Bank and DekaBank have been active as well.DekaBank, in Frankfurt, is primarily a fund manager, explained David McNeill, the head of Dekas New York branch. He added that its lending portfolio of about 7 billion euros overall and $3 billion in North America is relatively small. We cover New York, Boston, D.C., L.A., San Francisco and Seattle, Mr. McNeill said. Because we are small, we are very focused and targeted, using typically the highest-quality sponsors. Our product types are offices, primarily, and retail and hospitality. Last fall, Deka jointly funded a $364 million loan with HSBC on 1411 Broadway for Ivanhoe Cambridge. We try to do between $500 million and $1 billion in gross origination, before syndication, Mr. McNeill said. We are not looking to materially grow our real estate portfolio. We are looking to maintain it and grow slightly.Asian lenders share a strategy thats focused on specifc assets. German and Irish banks were all over the placethey fnanced a lot of diferent properties, said Andrew Jagoda, co-chair of the New York real estate department at law frm Katten Muchin Rosenman, who works with many international clients. Not so Asian lenders. They are very, very carefully making selective loans.Even though the activity of Asian lenders in the U.S. has been increasing, it's still not at the level of the Europeans. Between the third quarter of 2010 and the third quarter of 2012, banks from China and Hong Kong increased their outstanding loans held in U.S. branches by 92.7 percent, while banks from Singapore increased them by 90.4 percent, according to Trepp. In two years, there has been a $3 billion increase for China and Hong Kong banks and a $700 million increase for Singaporean banks. But when totaled, these increases dont reach even half of the $7.2 billion decrease in outstanding loans for German banks over that same time frame. At the end of the third quarter of 2012, German banks outstanding loans in the U.S. were $12.2 billion. At that time, the outstanding loans by Chinese banks in the U.S. totaled $6.1 billion.Riaz Cassum, a senior managing director of HFF who is responsible for the groups Global Capital Initiative, is among those who forecasts greater activity for Asian banks down the road. We expect them to be more active, he said, though he was quick to point out that, for now, Bank of China is particularly focused on Manhattan high-quality ofce towers with long-term loans, not across the U.S.Last spring, Bank of China obtained the Federal Reserves approval to set up a branch in Chicago, which could theoretically lead to an expansion of its focus, said Jones Lang LaSalles Mr. Comfort. There is also room for other players. Some government-owned Chinese banks have started to look around, he said. Mr. Cassum foresees Asian insurance companies being future newcomers in the lending market. Korean insurance companies are looking to do more lending, he said. The regulations in China dont allow insurance companies to make real estate loans outside the country, but, he said, this is likely to change in the next two to four years.Youll see Asian banks becoming bigger, especially Chinese, said RCAs Mr. Fasulo. However, he warned against overestimating the impact of small German banks leaving. We dont feel the impact, he said. CMBS will continue to grow, as well as a crowd of other lenders, like debt funds.While on a visit to the ofces of a German bank in Hamburg, Mr. Fasulo was struck by how the lobbys walls were covered with postcards of the famous U.S. buildings for which the lender had provided loans. So now he thinks of the trophy hotels and ofce towers chased by international banks as postcard assets.European banks cant go away for ever, Mr. Fasulo asserted. With a U.S. market that remains the worlds strongest for commercial real estate, Mr. Fasulo thinks that the appetite for these postcard assets will keep European lenders in the mixto keep their literal and fgurative lobby walls covered in these postcards. In the last two years, between the third quarter of 2010 and the third quarter of 2012, German banks outstanding loans held in U.S. branches dropped by 37 percent.TMO.0113.CS3.Feature2.indd 24 1/3/13 6:45:32 PMwww.walkerdunlop.comCommercial Real Estate Finance&>>>FHA BridgeFannie Mae Freddie MacCMBS Life CompanyYour PropertyOur FinancingDrew AndermanSenior Vice President, Multifamily Finance danderman@walkerdunlop.com212/953-7301 Steven HellerSenior Vice President, Multifamily Finance sheller@walkerdunlop.com646/253-8892 Untitled-12 1 12/31/12 1:22:52 PM26Q&A /January 2013Peter DArcyBy Damian GhigliottyThe Mortgage Observer: How did you get started in the real estate business?Peter DArcy: My start in real estate goes back to me joining M&T Bank right out of school. This is the only company Ive worked for in my professional career. I graduated from Vassar College in 1995 and came to M&T in a management development program. Coming into the bank, I didnt have a business background at all. At Vassar, I received a classic liberal arts education, and at the time M&T had a strong focus, though not exclusively, on recruiting liberal arts studentspeople who were good communicators and writers and who could synthesize thoughts.I started out in our retail banking business, which I did for a year, and then joined a newly created business banking group, lending to small businesses. That was exciting and gave me my frst real experience on the lending side. I also worked in our foundation and community reinvestment group here in the city in my frst few years with the bank.In 1999, I came over to work in our real estate private banking lending business. Thats where I really got involved in real estate fnancing. About four years later, I became a manager of our New York City commercial real estate department.I grew up in the city in a Mitchell-Lama building and went to high school at Loyola here in Manhattan, and that has actually been really important to my working with real estate fnancing. I have a very good understanding of New York, from the infrastructure to the cultures of diferent neighborhoods. Knowing how the city has evolved and how blocks have changed helps me pretty much every day with most deals.What was your biggest accomplishment in your frst few years working in commercial real estate?The biggest accomplishment was establishing myself in the role. As somebody who was newer to the clients and the business, I had to hustle a lot. I was young, so part of that meant overcoming youthful appearance and proving myself as someone who good operators in the city could count on to help them accomplish what they wanted to with the bank. When youre dealing with credit, especially, its a very experiential job where you need to know what happens when things dont work out as well as when they do, and you need to know people. Last week you became regional president for M&T Banks New York City market. How did that opportunity come about?When M&T decided to acquire Hudson City Bancorp earlier this year, that allowed us to fll a big hole in our footprint, since we dont have much of an existing branch network in New Jersey. Hudson Citys branch network fts like a glove into our footprint. Now our exercise is to build out a larger commercial bank in that region over the next few years. Part of that upcoming challenge involves Gino Martocci, who has been working as a regional president in New York. Hes been promoted to area manager in charge of New Jersey, New York, Long Island and Westchester. I will report to him as regional president of New York City. Thats the genesis of this opportunity. Whats the scope of your new role and how will your day-to-day responsibilities difer?We have a portfolio of about $8 billion in the New York area, and that includes commercial real estate, middle-market lending, not-for-proft lending, health care lending and small-business lending among other specialty business lines. The largest component of that is commercial real estate lending. My new role is overseeing those businesses and our overall activities in the New York City market, including integrating them with our recently acquired Wilmington Trust activities.Ill still be involved in commercial real estate lending, because its such a large component of our business in this market. But Ill step back from having a day-to-day focus and now have a broader focus on all of our businesses in the marketplace. With those other responsibilities, I wont be in as many initial deal meetings in a supervisor capacity the way I was before.How does the market for commercial real estate lending look now compared with two years ago?There is more liquidity in commercial real estate now, and with more investors coming into the marketplace, there seems to be a corresponding increase in the number of banks willing to lend. There are also more projects in the pipeline at the end of 2012. A year or two ago, our competition was very thin. Now there are a greater number of banks actively participating in the market, but there still is not an overwhelming amount of capital available for anything other than stabilized deals. Its nowhere near where it was in 2006 and the beginning of 2007.Whats on the horizon with the recent acquisitions at M&T and the new roles for you and your colleagues? In a nutshell, we have a really strong business in New York. Going forward, we want to focus on continuing to build our middle-market and specialty business lines like health care and private banking lending, so thats something thats in the works.Middle-market and health care lending are core competencies of the bank in general, but have traditionally not made up a majority of our outstandings in the New York City market. But this is quickly changing as these businesses continue to grow and expand. We have a lot of existing traction in building these commercial businesses and tremendous upside, given the size of the regional market and the banks strong reputation in these business lines. Peter DArcyM&T Bank To cap of 2012, The Mortgage Observer spoke to M&T Banks Peter DArcy, a 17-year company veteran who was recently promoted to regional president for New York City. Mr. DArcy spoke about his years with the bank, his new role and M&Ts plans to build its middle-market and health care lending presence.TMO.0113.CS3.Q+A.indd 26 1/3/13 6:46:59 PMNew York 212 925 6692Palm Beach Gardens 561 622 7022Austin 512 327 0101Newport Beach 949 706 3001 www.missioncap.comMission Capital Advisors Debt and Equity Advisory team has raised more than $8 billion of capital for real estate owners and developers nationwide during their careers. Mission Capital is one of the leading capital markets advisory rms in the country, having completed more than $55 billion of nancing, loan sale and Fannie Mae / Freddie Mac transactions since 2002. Contact Jordan Ray, Jason Cohen, Ari Hirt or David Tobin at 212-925-6692 or email nance@missioncap.com to discuss your debt and equity nancing needs. FROM DEBT & EQUITY CAPITAL ADVISORY...CAPITAL MARKETS LIQUIDITY END TO END COAST TO COASTTO CRE, C&I AND SINGLE FAMILY LOAN PORTFOLIO SALESNew York, NYNew York, NYNote SalesMiami, FLMiami, FLNote SalesChicago, ILMiami Beach, FLNote SaleBrooklyn, NYMiami Beach, FLNote SaleAcquisition and Residential Condo ConstructionThe Gem HotelExclusive Financial Advisor to M&I Bank on the Sale of 23 Portfolios of Performing and Non-Performing Loans Secured by Various Real Estate Assets Located Throughout the USAcquisition of Fractured Residential Condominium Units and Rental ApartmentsHotel Renovation aLoft OHare75% LTVBoutique Hotel PortfolioAcquisition and Completion of a Rental Apartment BuildingUpscale Boutique HostelNon-Performing Commercial Mortgage Secured by a Retail Property in Omaha, NE$130,000,000Construction Debt and JV Equity$27,000,000First Mortgage & Mezzanine Refinancing$4,279,000,000Unpaid Principal Balance$100,000,000Debt and JV Equity$15,700,000Non-Recourse Renovation Financing$16,500,000First Mortgage Refinancing$19,750,000Acquisition and Renovation Loan$19,500,000JV Equity & Non-Recourse Construction Financing$12,050,000Non-Recourse Acquisition & Renovation Loan$47,133,605Unpaid Principal BalanceExclusive Financial Advisor to CW Capital on the Sale of 29 Portfolios of Non-Performing Loans Secured by Various Real Estate Assets Located Throughout the US$1,700,000,000Unpaid Principal BalanceSub-Performing and Non-Performing Mortgages Secured by C&I, Office/Warehouse, Industrial/Warehouse, Condominium, Multifamily, Golf Course Community, Residential Development Land, and Golf Course Assets in AZ & WI$97,679,973Unpaid Principal Balance2007-2012 2007-2012 3/2011 10/2010Liquidity-Ad_12.20.12.indd 1 12/20/12 1:58 PMUntitled-24 1 1/1/13 5:20:00 PMUPCOMING MORTGAGE OBSERVER ISSUES:FEBRUARYWomens Issue1/17 1/21 1/29APRILMultifamily Lending3/14 3/18 3/26MARCH50 Most Important People in CRE Finance2/14 2/18 2/26MAYConstruction Financing4/18 4/22 4/30JUNERetail Lending5/16 5/20 5/28Issue Reservations Materials Issue DateJULY - AUGUSTTop Mezanine Lenders6/13 6/17 6/25The Mortgage Observer The Mortgage Observer is a monthly glossy magazine inserted into The Commercial Observer. With proles of industry giants and mortgage charts tracking the most active lenders and neighborhoods, and contributions from columnists Joshua Stein and Sam Chandon, The Mortgage Observer is your go-to for the most comprehensive coverage of the commercial mortgage industry.The Insiders Guide to New Yorks Commercial Mortgage Industry DECEMBER 2012CREFCs RennaSurveys Post-ElectionLandscapeQ&A The M.O. talks end-of-year with Kramer Levin partner Jay NevelofPOWER PROFILE STARWOOD PROPERTY TRUSTCo-Op CityWells Fargo Provides$621.5 M. to Keep It AordableIn Depth LookWhich Banks are Adding toTheir Ranks in Order to Grab a Share of 2013s ActivityDebtXLoan Sale Advisory Firm Charts Continued Rise inCRE Loan PricesInternational Gem TowerThe Site Where ExtellsTower is Rising Hasa Rich History TMO.1212.CS3.COVER.indd 1 11/29/12 5:36:26 PMAnd we are proud to introduceMortgage Observer WeeklyCompanion to The Mortgage Observer, providing industry updates and news to 10,000 real estate insiders. Mortgage Observer Weekly is a new weekly PDF emailed directly to industry players every Friday morning. To receive Mortgage Observer Weekly, please visit commercialobserver.com/mortgage-observer-weekly-signupFor advertising information please contact Barbara Ginsburg Shapiro, Associate Publisher, at 212-407-9383, bshapiro@observer.com.ComMortgObs_FullPage_9.875x10.5_01.indd 1 1/3/13 11:11:53 AMUntitled-3 1 12/26/12 10:42:41 AM30Culture /January 2013HolidaysThe Mortgage Observer shared in holiday cheer at several New York-area rms' holiday parties. Such luminaries as Murray Hill Properties' Norman Sturner, above left, celebrated at Avison Young's client appreciation party Dec. 17. Meanwhile, HKS Capital Partners' Ayush Kapahi and Jerry Swartz, above, ank M&T Bank's George Doerre and Peter D'Arcy at the rm's holiday party in the 60th oor penthouse of the Setai on Fifth Avenue and Mission Capital Advisors' David Tobin, above right, entertained guests at its Dec. 6 event at No. 8 in the Meatpacking District. TMO.0113.CS3.CULTURE.indd 30 1/3/13 7:08:36 PMSTK Miami2377 Collins AvenueMiami Beach, FL 33139Tuesday, January 15th 79 PM Cocktails & AppetizersRSVP: crefc@observer.com INVITES YOU TO CECR FUntitled-32 1 1/2/13 2:00:01 PM32The Sked /January 2013The Sked: JanuaryOBAMA: CHIP SOMODEVILLA/GETTY IMAGES

7-9Come out to Las Vegas for a conference on the global Internet, media and telecommunications. Bonus points to Citi Equities for selecting a hotel that doesnt charge day rates for wi access. 2013 Citi Internet, Media and Telecommunications Conference; Bellagio Hotel, 3600 Las Vegas Boulevard. South, Las Vegas, Nev. Visit http://tinyurl.com/be9n67t for more information.8Are we heading o a scal cli or a double black diamond slope? NAIOP Colorado: 2013 Economic Forecast; Marriott City Center, 1701 California Street, Denver, Colo. 7 a.m. to 9 a.m. Visit http://www.naiop-colorado.org for more information.14-16Wheres the money coming from in 2013? Kick o the new year at the Commercial Real Estate Finance Councils annual January conference and nd out.CRE Finance Council January 2013 conference; Loews Miami Beach Hotel, 1601 Collins Avenue, Miami Beach, Fla. Visit http://crefc.org or contact Alexandra Ong at (202) 448-0850 for more information. 14-18Even though the summit is being held in the sunny state of Florida, the four-day program isnt for slackers, with its focus on servicing and securitization. MISMO January 2013 Educational Summit and Workshop; One Ocean Resort & Spa, 1 Ocean Boulevard, Atlantic Beach, Fla. Visit http://www.mismo.org for more information.16Join the Urban Land Institute for a panel on the future of capital markets. The o ce is easy to nd, just take the 10 to the 405, get o at Wilshire and take Sepulveda to Santa Monica Boulevard. Turn left. Urban Land Institute Los Angeless Stimuli Breakfast: Whats Next in Capital Markets? Greenberg Glusker, 1900 Avenue of the Stars, 22nd oor, Los Angeles, Calif. 7:30 a.m. to 9 a.m. Visit http://la.uli.org for more information.23-25It may prove di cult to focus on potential hardships en route from Washington or Europe as you relax at a resort and spa in Laguna Beach. Nonetheless, pending regulatory changes, 2013 scal policy and the future of Europe are all on tap. IMNs 10th annual Winter Forum on Real Estate Opportunity & Private Fund Investing; Montage Resort & Spa, 30801 South Coast Highway, Laguna Beach, Calif. Visit http://www.imn.org for more information.24On the heels of the presidential inauguration, this rescheduled panel tackles the political climate ahead and how its likely to impact commercial real estate. Herrick Feinstein partner Stephen Brodie moderates. The Mortgage Bankers Association of New York presents How the Political Climate Aects Commercial Real Estate for 2013 and Beyond; O ces of Herrick Feinstein, 2 Park Avenue, New York, N.Y. 8 a.m. to 9:30 a.m. Visit http://www.mbany.org for more information.Are we heading o a scal cli or a double black NAIOP Colorado: 2013 Economic Forecast; Marriott City Center, 1701 California Street, Denver, Colo. 7 a.m. to 9 a.m. Visit http://www.TMO.0113.CS3.TheSked.indd 32 1/3/13 6:52:12 PMUntitled-48 1 10/24/12 11:35:47 AM AZ s integrated platform provides our clients with Debt, Mezzanine Capital, JV Equity and Investment Sales opportunities across all property types. WWW. A C K MA N Z I F F . C O M HEADQUARTERS NEW YORK 212.697.3333 BOSTON 617.371.2427 MIAMI 305.503.1107 ONE FIRM THE SPECIFIC ASSETS AND DETAILS OF THE TRANSACTIONS ARE PURPOSELY LIMITED DUE TO RESPECT FOR OUR CLIENTS AND THEIR CONFIDENTIALITY. $130,000,000 Debt Multi-Family Maryland $111,500,000 Debt & Mezzanine Multi-Family California $80,000,000 Construction Hotel New York $175,350,000 Debt Multi-Family Maryland $159,000,000 Debt & Mezzanine Office New York $40,200,000 Construction Retail Texas $48,000,000 Debt Condo New York $60,000,000 Debt Hotel Florida Untitled-27 1 1/2/13 11:18:32 AM