Top Mortgage Brokers 2016Mortgage Broker 2016
Whilst the mortgage brokerage industry works smoothly, there is of course a lot of cash at stake. Last year, all companies that achieved the rankings profited from a peak year for capital expenditure in 2015. Most of the people TRD has spoken to, however, do not anticipate that 2016 will be a second year.
"Meridian CEO Ralph Herzka said in an email: "We expect 2016 to be a year of relatively moderate economic expansion and possibly some heightened prudence on the part of our investor and lender base. However, the deal these companies arrange is spread across the entire range, from the sale of trophies to the huge multi-family portfolios.
The eighth-place director of the Iron Hound Management shop, Robert Verrone, was more outspoken in his assessment of the overall quality of the store than Herzka. Go to the brokers or not? Last year when TRD was rating mortgage brokers in 2013, we were looking at $100 million and more in credit.
Eastdil and Meridian actually led the way, but with less time. In this year's rankings, where urban ownership was sought for registered credit and then matched with companies through newspaper coverage, sector resources and the brokers themselves, Eastdil and Meridian not only have a strong foothold in the business, but also the ability for other companies to grow.
TRD audited more than 350 credits of $50 million or more in Manhattan alone, with a total value of more than $65 billion. TRD was able to pinpoint brokers for 94 of these transactions. This means that more than two third of the transactions remain either unindebted or mediated by under-the-radar agencies. E.g. affiliated companies, which had backed several billion credits for Hudson Yards last year, did not use a real estate agent, a spokesman for the developers said to TRD.
Whilst some say that these unmediated transactions show that borrower are well prepared to bargain for themselves, those in the brokerage industry say that it is an option. "This is because those who fund and manage asset dealing do not have the amount of capital or timing to investigate indebtedness issues in the market in real terms," Herzka said.
Agents and creditors market their products in an aggressive manner to lessors or purchasers. "The majority of the groups we represents are directly and consistently hit by other brokers and lenders," said Scott Singer, a principale of the Singer & Bassuk Organization broking company, which was not ranked this year.
The TRD was unable to pinpoint transactions worth more than $100 million - the cut-off for the company's rankings - and Singer would not publish any transactions he had arrange. However, the company often works with multi-generation ownership companies such as Rockrose Development and Jack Resnick & Sons. Early this year, Singer signed an asset management deal for Resnick's whole billion dollar Resnick investment pipeline.
It is likely that the company would also act as its mortgage agent as part of this transaction, but Singer refused to explain the terms of the agreement. A further large company that refused to reveal its transactions was Midtown-based Estreich & Company, which works in close collaboration with large shareholders such as A&E Real Estate Management and Thor Equities.
Eastdil, which also predominates the New York City entertainment class, masters the discipline of self-financing. The company not only arranged the divestment of the 11,200 units of Stuyvesant Town and Peter Cooper Village to the Blackstone Group and Ivanhoe Cambridge in December, but also arranged the $2.7 billion credit they bought earlier.
Still, according to general records, Eastdil has knocked a large selection of lenders other than Wells Fargo on its agreements, both insurance corporations such as New York Life and privately held equities such as TPG Capital. Meanwhile, Meridians most important dealer was RXR Realty's 785 million dollar loans to RXR, backed by 230 Park Avenue.
However, the company has also provided several large multi-family credit portfolios, among them a $592 million Blackstone mortgage, which bought a large group of multi-family homes formerly known as the Kaiola family. Annaly Capital Management granted this facility. This year, too, several new companies made their debut in the rankings.
Among them were Great Neck, Long Island resident GCP Capital Group and Midtown resident RM Capital Management. Established by Paul Greenbaum, Matthew Classi and Alan Perlmutter, GCP Capital has completed 10 transactions for a total of $734 million in multi-family asset lending. Last year, RM Capital - led by Marc Sznajderman and Romano Tio - placed a US$ 115 million large credit from Deutsche Bank for Savanna and the Silvermintz family's business expansion at 540West 26th Street in Chelsea.
Whilst more dealings are more equivalent to more financing, there may be a silver streak for these reputable mortgage brokers if the mortgage brokerage business goes on to soft a little - at least that's the selling talk that mortgage brokers make. Mortgage brokers can create added value in more rocky regions, they say. For example, if a builder works alone with a local banking institution and that banking institution chooses to discontinue building lending, a mortgage agent will be in a better situation to enter the mortgage brokerage business in order to find other creditors.