(Read more on the debt and equity markets and the multifamily market .)
NEW YORK CITY-Real estate investment bank Carlton Advisory Services Inc. has been retained by several Wall Street investment and commercial banks to assist them with the marketing and sale of more than $1 billion in troubled real estate loans. The loans are primarily a combination of failed condominium and development projects in the Southeast, sub-performing subprime residential mortgages and small balance commercial mortgages spread throughout the country.
Carlton has previously sold in excess of $7 billion in whole loans for various institutions. This business has picked up tremendously in recent months, according to Thomas McCarthy, managing director at Carlton, who tells GlobeSt.com that the current market climate helps Carlton at this time. "We get people liquidity for their assets," he adds.
A summary of the pending loan sale transactions are as follows: $120 million of residential subprime loan assets on behalf of a Wall Street investment bank; $16.5-million nonperforming mezzanine loan pertaining to a condominium conversion project for a subsidiary of a top 15 bank holding company; $480-million commercial floating rate pool on behalf of a private finance company; $76 million of residential option ARM loan assets on behalf of a Wall Street investment bank; $21-million nonperforming loan secured by a first lien on a condominium conversion project on behalf of a top 30 bank holding company; $112-million nonperforming development loan portfolio on behalf of a top 25 bank holding company; $106-million nonperforming development loan portfolio on behalf of a top 35 bank; $35-million residential subprime loan portfolio (negotiated transaction between a top 10 bank and a regional niche bank); $20.9 million of residential home equity loans on behalf of a Wall Street investment bank.
McCarthy tells GlobeSt.com that they are unable to disclose who the specific sellers are at this time. He explains that a typical scenario of Carlton markets and sells loans are as follows: "First we put together a secure website with all the loan information, purchase and sale agreements, bid forms etc. We then send out an offering specific to the sale to companies in our database, which is approaching 10,000 names," he says. "And finally we put together calling campaigns. We provide clients with access to a variety of potential buyers they may not have been able to reach in the past."
To handle the increased growth of this business and the need for Carlton's services by financial institutions and lenders, Carlton has hired five whole loan trading professionals to work with the financial institutions and buyers of these assets. These appointments bring the firm's loan sales advisory group to eight full time individuals.
The five new Carlton loan sale executives are: Jason Kopcak, who prior to joining Carlton was the president and owner of Genesis Mortgage, a 140-person firm in five states; Mark Kreisler, whose most recent experience includes being the CEO and president of Zurich Mortgage Solutions as well as prior experience at Premier Mortgage and Merrill Lynch; Andrew Belew, whose 23 years of combined real estate development, acquisition and experience includes being the director of asset management at Ocwen Financial and Metropolitan Mortgage Securities; Vincent A. White, who prior to being the COO for LEI Mortgage in San Diego, was the director of secondary marketing for Lydian Bank and the VP of secondary marketing for SIB Mortgage; and Justin R. Piasecki, who has been the COO of Zurich Mortgage, as well as a VP for the United Appraisal Network.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
