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NEEDHAM, MA-Potomac Realty Capital LLC has selected Stephen E. Vickery to be chief financial officer. Daniel M. Palmier, president & CEO, says that Vickery will lead several initiatives the company plans to launch this year, including developing its servicing activities, placing its first collateralized debt obligation and issuing preferred securities.
Overall, Potomac Realty's financial goal is have balance sheet assets reach $1 billion by year-end, from its current internal value of about $400 million, Palmier says. The firm, nearly two years old, did its first balance sheet loan in November 2004. Last year it did $1 billion in transactions, primarily on the eastern seaboard, according to Palmier.
More recently, Potomac Realty, which provides bridge, mezzanine and permanent commercial real estate loans, completed a handful of transactions in the West and Midwest, from Chicago to Arizona. "We will pick opportunities in pretty much any market in the country," Palmier says.
Potomac expects to open an office in Chicago this year as well, from which it will continue to expand throughout the rest of the US. "Now that our senior management team is in place, we will continue to grow our sales force," Palmier adds.
Also in Q3 or Q4, the company plans to issue a CDO as well as preferred stock in order to lower the overall cost of funds and make the company more competitive in the marketplace, Palmier says--activities in which Vickery is expected to play a key role. "And we will continue to raise additional equity through private and institutional sources, which he will also lead."
Then there is its developing servicing initiative. In 2005, Potomac originated over $1 billion in commercial mortgage loans. Potomac Realty expects to double that number this year; half of those assets, Palmier says, are to remain on its own balance sheet – which the firm would service. "We are looking to be a rated servicer of mortgage loans, servicing the CMBS transactions that we would also be originating on Wall Street."
Vickery is a former senior business manager/vice president for Deutsche Bank Berkshire Mortgage Inc. Prior to that, he worked for the Berkshire Group where he was the vice president of financial planning and analysis for the Berkshire Mortgage Finance division.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
