George Smith Partners Launches Lender Services

CENTURY CITY, CA-So many lenders are trying to raise cash these days by selling assets and so many investors are interested in buying those assets that commercial real estate investment banking firm George Smith Partners Inc. has formed a new unit called the Lender Services Group to market and sell lenders’ assets. Craig Hamilton, a George Smith senior vice president, tells GlobeSt.com the new unit—which predominantly will be selling loans—is a response to a large and growing demand from the lenders and investors that the Century City-based firm is in contact with every day.

The new Lender Services Group is looking at potential asset sales that range from individual loans as low as $2 million to pools of assets approaching $1 billion. Hamilton says the firm already has interest from private investors and investor groups that have committed to “substantial amounts” of funds to acquire the assets. Since many of the banks selling assets are looking to raise substantial amounts of cash, the larger assets and pools are expected to attract “quite a bit of interest” from institutional investors, Hamilton notes.

“Virtually every group that calls in today is calling to discuss assets and opportunities to purchase assets from lenders,” Hamilton says. At the same time, he says, lenders who are trying to raise cash by selling assets are asking GSP to find buyers for them. At the lenders’ discretion, the new George Smith group will be able to close deals quickly and quietly by choosing from a select list of potential bidders for lenders who want to execute discreetly, but it will also be able to utilize a broad-based bid system.