Local and regional US banks are “aggressively” trying to fill the capital void left by the collapse of the securitised mortgage market and the departure of more traditional lenders.
Holliday Fenoglio Fowler managing director Gerry Yates said in a statement smaller local and regional banks whose balance sheets had not been severely impacted by the credit and subprime crisis were taking advantage of the “lack of appetite” among life insurance companies and CMBS providers.
Yates recently arranged a $35 million refinancing for opportunistic real estate investment firm Talcott Realty Investors. Talcott secured a three-year, adjustable-rate loan from Bridgeport, Connecticut-based People’s United Bank.
The loan was secured against the Class A office property, One Financial Plaza, in Hartford, Connecticut. The building is known as the “Gold Building” and is 99 percent leased with tenants including People’s Bank and United Technologies Corporation.
In January, HFF arranged a $94 million refinancing for private equity real estate firm Cornerstone Real Estate Advisers with a local New York bank. The four-year, fixed rate loan, which has a five year extension option, was secured against the 44-story multifamily property, Riverbank West, on West 43rd Street, Manhattan.
Cornerstone, run by president and chief executive officer David Reilly and chief operating officer Thomas Dudeck, is a subsidiary of MassMutual life insurance company.