Banking Industry's CMBS Leader Crosses $1 Billion Production Threshold.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--May 10, 2002

Bridger Commercial Funding, the leading commercial real estate capital markets partner covering the U.S. banking industry, today crossed the $1,000,000,000 mark in CMBS (Commercial Mortgage Backed Securities) loan fundings. Providing regional and community banks with a CMBS alternative for commercial real estate financing has been Bridger's mission, and the firm has closed loans with over 60 banks since its formation in mid-1998.

Bridger's founder and CEO, Bob Schonefeld, noted that commercial banks are playing an ever-increasing role in the CMBS industry. "We recognized that banks needed a secondary market alternative for commercial real estate loans, because their borrowers were obtaining this product from non-bank sources. Banks typically have close and long-standing relationships with their borrowers, and it seemed logical to us that they should try to preserve, if not enhance, those relationships."

Providing CMBS origination capability to banks that are active commercial real estate lenders has broken new ground for the banking industry, according to Peter Grabell, who heads relationship management for Bridger. "Our strategy has been to bring CMBS origination capability to banks that lack real estate capital markets functions, giving them the ability to compete with the money center banks and non-bank intermediaries.

"Bridger's bank customers are all across the country, and represent all types of banks--de novos, community banks, regional banks and two banks that are among the nation's 10 largest in terms of assets," Grabell added. "We've closed loans with 63 banks, and we've looked at potential loans from over 230 banks. No doubt, banks are a very viable origination channel."

While the CMBS industry's production volume so far in 2002 trails 2001's levels, business should pick up as the economy and the commercial real estate markets recover from the economic downturn. "The good news for borrowers is that the commercial mortgage-backed securities market remains a competitive source of mortgage capital. All-in rates have declined, which bodes well for our bank clients and their customers. Fixed-rate loans continue to exhibit overall pricing that remains low by historical standards. Under such conditions, all banks and their borrowers need a program like Bridger's," said Bridger's Schonefeld.

Bridger Commercial Funding is the leading commercial real estate capital markets resource serving the U.S. banking industry, with over 850 bank relationships nationwide. Bridger's innovative products and technology applications help banks maximize their risk-adjusted returns by accessing the secondary mortgage market. Bridger's commercial mortgage-backed securities (CMBS) loan origination program enables banks to boost financial performance by generating substantial fee income while retaining and enhancing borrower relationships. In addition, Bridger's BankXchange(TM) program optimizes banks' loan portfolio risk profiles and returns by facilitating purchases and sales of loan portfolios, whole loans and participations. Through a growing network of over 3,100 commercial loan officers nationwide, Bridger is commercial real estate banking's premier provider of secondary market origination and trading solutions.