We also have extensive real estate and development experience, in our backgrounds, which allows us to add significant value to the real estate projects our clients are involved with. This experience gives us the ability to be effective in raising both debt and equity for our clients.

GlobeSt.com: You've been in the real estate investment banking industry since the mid 1990s. What changes have you seen in the Southern California market and how has Bridgeport Investments adapted to these?

Bramel: We have seen a number of both small and large investment banking firms come and go over the years. Today, more equity capital is being provided by institutional sources versus high-net-worth private investors, since the financial market meltdown in 2007-2008. Because of this change we have been emphasizing arranging more deals with institutional equity sources recently. We continue to compete based on our market knowledge and relationships; our investment and development experience, which aids in structuring and raising equity for clients; our consistent performance, and the value of our strategic counsel.

GlobeSt.com: You have secured more than $47 million of in real estate financing in the past year. What are Bridgeport Investments' goals moving forward?

Bramel: The capital raised in the last year has essentially been equity capital, for distressed real estate or debt acquisitions. In addition to arranging equity for our clients, we raise a significant amount of debt, at the present time we are pursuing our first construction loan since 2008, permanent debt, and bridge/acquisition financing, as well, on behalf our clients. Our goal is to continue meeting the diverse capital needs of our clients in the areas of equity, bridge/acquisition debt, construction loans, permanent debt, and entity financing. We hope to grow our business by providing for the capital needs of our existing clients and selectively taking on new quality clients.

GlobeSt.com: What criteria do you use to identify investment opportunities in commercial real estate debt, and how difficult is it to secure financing for these deals?

Bramel: Our entrepreneurial sponsor/developer clients identify the assets for acquisition. In our experience some, some of the key criteria for evaluating distressed debt for acquisition are: the value and status of the underlying real estate, strength of the market where the real estate is located; assessment of the borrower situation, the economics of the deal, and various complex legal issues. Financing for distressed commercial debt is complex and is usually structured for each deal. Substantially all of the distressed projects we have financed over the last year and a half have been financed with all equity, unless the note seller carried back debt.

GlobeSt.com: Are there any specific property types that smaller real estate investment banking firms should focus on in the current market?

Bramel: They would be best served to work on product types and markets in which they have solid knowledge.

GlobeSt.com: What trends are you seeing in today's investment market and what do you expect to see in the coming year?

Bramel: The vast majority of distressed commercial real estate or debt has not yet been disposed of by lenders or owners. It will take a number of years for this real estate to be recycled. Hopefully, the distressed deal flow will continue to increase in the next year, as it has in 2011. Over the last eighteen months, quality commercial properties with cash flow have sold at values significantly higher than anticipated due to strong investor demand and available debt and equity financing, but a bubble in this sector has probably formed. Values for vacant buildings have been relatively static. Developers are beginning to look at build-to-suits and some new industrial projects, while office and retail markets continue to be oversupplied.

Equity capital has been generally available in the marketplace since 2010, for the right deals. Construction financing for commercial/industrial properties has generally only been available on a build-to-suit basis, up to now. We are beginning to see some lenders offer construction financing for spec projects in strong markets and where the developer has strong experience and liquidity. Bridge/acquisition debt is becoming more available in the marketplace. The amount of permanent financing for quality commercial/industrial properties is growing. However, in recent weeks the amount of CMBS financing in the marketplace has become constrained due to bond purchaser reluctance, financial market turmoil, and tighter rating agency requirements. Properties with cash flow are generally able to attract debt: vacant buildings have limited debt options today, but we expect that to change over the next year.