DIRECT LENDERS: BIGGER WACHOVIA SEEKS BIGGER SHARE
By Upendra Mishra
Jul 1, 2002 12:00 PM
THE SEPTEMBER 2001 MERGER OF WACHOVIA and First Union has not only
created a banking giant — Wachovia Corp. — with 20 million
customers and $322 billion in assets, but also a real estate lending
powerhouse.
“We don't see why we can't increase our market share in excess
of 6%. In fact, we could be 10% of the domestic market in the
near-term,” says Managing Director Bill Green, who came over from
First Union and leads the real estate capital markets division.
“There are no limitations to our platform.”
Wachovia finished No. 8 in NREI's Top Direct Lenders Survey,
with $4.1 billion financed in 2001.
While integration teams continue to work hard to implement best
practices, identify new marketing opportunities and explore
efficiencies, the full merger integration process is expected to be
completed in two to three years. So far, however, the merger has been
hailed as win-win for both parties, and especially for its real estate
group.
“There was very little crossover with First Union. What First
Union had, Wachovia did not,” Green says.
For example, in comparing the operations and services of the two
banks, executives determined the capital markets business at the merged
bank was made up of about 95% of First Union's accounts and 5% of
Wachovia's. In the investment banking arena, First Union had a share of
about 85% to Wachovia's 15%. Green adds that Wachovia's traditional
real estate banking business accounts for about $25 billion, or nearly
75%, of the merged bank's accounts.
Under the new structure, the firm's real estate financial services
are divided into two major categories: traditional real estate banking
and real estate corporate/investment banking.
The traditional real estate banking division serves developers,
investors, owners, and smaller pension and opportunity fund
managers.
The corporate/investment banking division provides services to
REITs, corporate real estate users, and larger pension and opportunity
fund managers. It also offers operating credit facilities, commercial
mortgage-backed securities (CMBS) and mezzanine financing, among other
services.
In May, Wachovia launched a national advertising campaign to promote
the new Wachovia brand. The campaign's initial stage will promote
Wachovia Securities, the brand name under which Wachovia Corp. provides
corporate and investment banking, including real estate and retail
brokerage services.
Mike Slocum, executive vice president of real estate financial
services at Wachovia, says the merger has strengthened the firm's
position in its market, which now extends from Connecticut to Florida
with 25 different offices throughout the East Coast.
With the integration of the merger process moving smoothly,
Wachovia's immediate goal is to increase its share in the $1.7 trillion
domestic real estate market, Green says, adding that Wachovia currently
provides 6% of the nation's mortgage debt to the banking sector and 6%
to the conduit sector.
Wachovia also is expanding into other financial services areas.
Earlier this year, the bank launched asset management services for
third parties. The future growth of Wachovia and any other real estate
financial services provider, however, is closely tied to the
economy.
“We have obviously seen a slowdown. Projects are staying much
longer on the drawing board,” adds Slocum. “But the markets
in New England, New Jersey and Eastern Pennsylvania are seeing less
deterioration than the Southeast. We have not seen any significant
deterioration in our portfolio.”
Top 25 Direct Lenders
The Top Direct Lenders & Intermediaries rankings were first
published in April 2002 and are based on responses to NREI's Top
Lender Survey questionnaire. The Top Direct Lenders listing reflects
total dollars financed during the 2001 calendar year. The second
survey, beginning on page 67, ranks financial intermediaries, including
mortgage brokers and financial firms that arranged or facilitated
transactions during 2001. The listing includes firms financing direct
loans, credit lines, CMBS lending and other forms of more direct
investment to the industry.
1. Bank of America/Banc of America Securities LLC
100 N. Tryon St., Charlotte, NC 28255 Phone: (704) 386-2278 Fax: (704) 387-1710 Web site:www.bankofamerica.com Officers: Eugene J. Godbold, Jr., Real Estate Banking Executive;
Ron D. Sturzenegger, Managing Director Real Estate & Lodging
Invest. Banking; George G. Ellison, Managing Director Global Structured
Finance; Linda M. Westphal, VP Financed in 2001: $21.6 billion
2 Lehman Brothers745 Seventh Avenue, New York, NY 10019 Phone: (212) 526-5191 E-mail:kcohen@lehman.com Officers: Richard S. Fuld, Jr., Chairman/CEO; Joseph M. Gregory,
Managing Director/CEO; Kenneth Cohen, Managing Director Financed in 2001: $8.2 billion
Lending goal for 2002: $10.0 billion
3 Credit Suisse First Boston
*Totals include lending volume of Column Financial
11 Madison Ave., New York, NY 10010 Phone: (212) 325-2000 Web site:www.csfb.com Officers: Steve Kantor, Managing Director/CSFB; Robert Brennan,
Managing Director/CSFB; Kieran P. Quinn, President/Column; Darrell
Moore, CFO/Column Financed in 2001: $6.4 billion
4 Goldman, Sachs & Co.
85 Broad St., New York, NY 10004 Phone: (212) 902-1000 Fax: (212) 902-3000 Web site:www.gs.com Officers: Mark Weiss, Managing Director; Dan Sparks, Managing
Director; Jeff Fastov, Managing Director; Mark Buono, VP Financed in 2001: $5.7 billion
Financed by Region:
Northeast: $2.9 billion
Southeast: $532.2 million
Southwest: $428.7 million
West: $1.9 billion 5
5 UBS Warburg
1285 Avenue of the Americas
New York, NY 10019 Phone: (212) 713-8844 Fax: (212) 713-2099 Officers: Brian Harris, Managing Director; Peter Smith, Exec.
Director; Marc Warren, Exec. Director Financed in 2001: $4.8 billion
Financed by Region:
Northeast: $2.4 billion
Southeast: $500 million
Midwest: $500 million
Southwest: $400 million
West: $1 billion
Lending goal for 2002: $5 billion
6 Prudential Mortgage Capital Co.
100 Mulberry St., G-4, 8th Floor
Newark, NJ 07102 Phone: (888) 263-6800 Fax: (973) 367-8210 E-mail:pru_mortgage-capital@prudential.com Web site:www.prudential.com Officers: David Twardock, President; David Durning, Managing
Director/Originations; Amy Rubin, Director, Marketing &
Promotions Financed in 2001: $4.6 billion
7 Morgan Stanley
1585 Broadway, New York, NY 10036 Phone: (212) 761-6282 Fax: (212) 761-3289 E-mail:fred.harmeyer@morganstanley.com Officers: John Westerfield, Managing Director; James Flaum,
Managing Director; Fred Harmeyer, Exec. Director Financed in 2001: $4.2 billion
Lending goal for 2002: $4.5 billion
8 Wachovia Securities
301 S. College, Charlotte, NC 28288 Phone: (704) 383-6315 E-mail:brett.smith@wachovia.com Web site:www.wachovia.com Officers: Ben Williams, Managing Director, Real Estate &
Finance Services; Bill Green, Managing Director, Real Estate Capital
Markets; Brett Smith, Managing Director, Mortgage Origination &
Placement; Jim Pierpoint, VP/Corporate Communications Financed in 2001: $4.1 billion
9 TIAA-CREF
730 Third Ave., New York, NY 10017 Phone: (212) 916-4476 Fax: (212) 916-6005 Officers: John H. Biggs, Chairman, President/CEO; Martin L.
Leibowitz, Vice Chairman/Chief Investment Officer; Joseph W. Luik,
Senior Managing Director, Mortgage & Real Estate; Claire Sheahan,
External Affairs Officer Financed in 2001: $3.7 billion
Lending goal for 2002: $3.3 billion
10 Berkshire Mortgage Finance
One Beacon St., 14th Floor, Boston, MA 02108 Phone: (617) 523-0066 Fax: (617) 556-1507 E-Mail:contactus@bmfloan.com Web site:www.bmfloan.com Officers: Peter Donovan, CEO; Ron Halpern, President/COO; Bryan
L. Frazier, President, Irvine; Tom Szydlowski, President, Boston; Scott
Suttle, President, Bethesda Financed in 2001: $3.5 billion
Financed by Region:
Northeast: $750 million
Southeast: $327 million
Midwest: $940 million
Southwest: $208 million
West: $1.3 billion
Lending goal for 2002: $2.9 billion
11 ARCS Commercial Mortgage Co. LP
26901 Agoura Rd., Suite 200
Calabasas Hills, CA 91301 Phone: (800) ASK-ARCS Fax: (818) 880-3330 E-Mail:info@arcscommercial.com Web site:www.askarcs.com Officers: Howard Levine, CEO; Tim White, COO; Holli Leon, SVP
Production; Arthur Nissman, VP, Corporate Communications Financed in 2001: $3.3 billion
Financed by Region:
Northeast: $530 million
Southeast: $450 million
Midwest: $220 million
Southwest: $370 million
West: $1.7 billion
12 PNC Real Estate Finance
249 Fifth Ave., 19th Floor, Pittsburgh, PA 15222 Phone: (800) 253-0005 Fax: (412) 768-5297 E-mail:realestateinfo@pnc.com Web site:www.pncrealestatefinance.com Officers: Andy Siwulec, President; Susanne Andres, Marketing
Manager Financed in 2001: $3.2 billion
Lending goal for 2002: $3.0 billion
13 National City Corp.
1900 E Ninth St., Cleveland, OH 44114 Phone: (216) 222-2332 Fax: (216) 222-9650 Officers: Kenneth M. Goetz, Exec. VP/Business Line Manager Financed in 2001: $2.9 billion
14 Bear, Stearns & Co. Inc.
383 Madison Ave., New York, NY 10179 Phone: (212) 272-7918 Fax: (212) 272-7047 E-Mail:choeffel@bear.com Web site:www.bearstearns.com Officers: J. Christopher Hoeffel, Senior Managing Director; Jeff
Taschler, Managing Director Financed in 2001: $2.8 billion
Financed by Region:
Northeast: $1.1 billion
Southeast: $317 million
Midwest: $374 million
Southwest: $324 million
West: $698 million
Lending goal for 2002: $3.6 billion
15 Lend Lease Real Estate Investments
700 N. Pearl St., Suite 2400
Dallas, TX 75201 Phone: (214) 953-7923 Fax: (214) 953-7703 Web site:www.lendleaserei.com Officers: Donnie M. Skidmore, President; Edward L. Hurley,
Managing Principal; Boyd Johnson, Principal, Debt Advisory Group; Frank
Creamer, Managing Principal Financed in 2001: $2.4 billion
16 Key Commercial Real Estate*
127 Public Square
Cleveland, OH 44114 Phone: (888) KEY-2221 E-mail:george_emmons@keybank.com Web site:www.key.com/cre Officers: George Emmons, Exec. VP/National Manager; Kristine
Cerny, Chief Administrative Officer/SVP; John Case, Sr. Managing
Director/Key Commercial Mortgage; Laurie Masters, Marketing
Manager/VP Financed in 2001: $2 billion
Financed by Region:
Northeast: $263 million
Southeast: $407 million
Midwest: $435 million
Southwest: $417 million
West: $528 million
Lending goal for 2002: $2.7 billion
* The correct origination total should be $7.2 billion. The revised
figure reflects data provided to NREI after publication.
17 GE Capital Real Estate
292 Long Ridge Rd., Stamford, CT 06927 Phone: (888) GE-FIRST Fax: (203) 357-4475 Web site:www.gecapitalrealestate.com Officers: Michael E. Pralle, President/CEO; Dan Smith, Managing
Director, Principal Capital Group, North America; Joan Lavis, SVP
Marketing Financed in 2001: $1.9 billion
Financed by Region:
Northeast: $231.5 million
Southeast: $560.3 million
Midwest: $96.8 million
Southwest: $424.8 million
West: $575.6 million
Lending goal for 2002: $2.3 billion
18 Red Capital Group
150 E. Gay St., 22nd Floor
Columbus, OH 43215 Phone: (800) 837-5100 Fax: (614) 857-1660 E-mail:financing@redcapitalgroup.com Web site:www.redcapitalgroup.com Officers: Wm. E. Roberts, Chairman/CEO, Red Capital Group; David
L. Goodman, Chairman/CEO, Red Mortgage Capital, Inc.; Linda L. Machov,
Director Financed in 2001: $1.8 billion
19 Credit Lyonnais
1301 Sixth Ave.
New York, NY 10019 Phone: (212) 261-7854 Fax: (212) 261-3830 E-Mail:jim.fitzgerald@clamericas.com Officers: J. R. Fitzgerald, SVP; Ron Krolick, Managing Director;
Jack Confusione, First VP Financed in 2001: $1.4 billion
Financed by Region:
Northeast: $800 million
Southeast: $200 million
West: $400 million
International: $1 billion
Lending goal for 2002: $2 billion
20 Fremont Investment & Loan
175 N. Riverview Dr., Anaheim, CA 92808 Phone: (714) 283-6500 Fax: (714) 283-6555 Web site:www.1800fremont.com Officers: Thomas Whitesell, SVP Financed in 2001: $1.35 billion
Financed by Region:
Northeast: $360 million
Southeast: $100 million
Midwest: $160 million
Southwest: $85 million
West: $645 million
21 Capri Capital LP
1655 N. Fort Myer Dr., Arlington, VA 22209 Phone: (703) 243-5100 Fax: (703) 525-4323 E-mail:info@capricapital.com Web site:www.capricap.com Officers: Daryl J. Carter, Co-Chairman; Quintin E. Primo,
Co-Chairman; Patrick J. Colliton, Exec. VP; Robert L. Moore, Jr., Vice
Chairman Financed in 2001: $1.3 billion
Lending goal for 2002: $1.2 billion
21 Wells Fargo Commercial Mortgage Group
45 Fremont St., 9th Floor
San Francisco, CA 94163 Phone: (415) 396-6616 Fax: (415) 975-7813 Web site:www.wellsfargo/cmg.com Officers: Ed Blakey, Exec. VP/ Managing Director; Jim McDevitt,
SVP, Origination Manager; Julie Forsythe, VP/ Director of
Marketing Financed in 2001: $1.3 billion
Financed by Region:
Northeast: $95.4 million
Southeast: $69.9 million
Midwest: $136.7 million
Southwest: $134.6 million
West: $855.5 million
23 American Property Financing
6 E. 43rd St., New York, NY 10017 Phone: (212) 850-4200 Fax: (212) 850-4216 Web site:www.apfmultifamily.com Officers: Alan Wiener, Chairman; Art Habighorst, President Financed in 2001: $1.2 billion
23 iStar Financial Inc.
1114 Avenue of the Americas
New York, NY 10036 Phone: (212) 930-9400 Fax: (212) 930-9455 E-mail:customers@istarfinancial.com Web site:www.istarfinancial.com Officers: Jay Sugarman, Chairman/CEO; Spencer B. Haber,
President/CFO; Jeffrey R. Digel, Exec. VP/Investments; Roger M. Cozzi,
Exec. VP/Investments; Andrew C. Richardson, SVP/Capital Markets; Lianne
A. Merchant, VP/Marketing Financed in 2001: $1.2 billion
Financed by Region:
Northeast: $271.5 million
Southeast: $279 million
Midwest: $147.7 million
Southwest: $312.1 million
West: $223.2 million
25 CDC Mortgage Capital Inc.
9 West 57th Street, New York, NY 10019 Phone: (212) 891-5700 Fax: (212) 891-5777 Web site:www.cdcmc.com Officers: Brook Payner, Managing Director; Scott Zucker,
Managing Director; Agna Brayshaw, Advertising and Marketing
Coordinator Financed in 2001: $1 billion
Financed by Region:
Northeast: $350 million
Southeast: $250 million
Midwest: $200 million
West: $200 million
