Boston Capital, Llama form finance venture.

Boston Capital, a diversified real estate investment firm and Llama Company, one of the nation's best capitalized regional investment banking firms, announced today Boston Capital Mortgage Company (BCMC), a new $100 million joint venture company which will finance, as a principal lender, multifamily and commercial real estate loans. The launching of BCMC was announced by Jack Manning, president and co-founder of Boston Capital, and Alice Walton, president, CEO and founder of Llama Company.

BCMC will originate and close loans as a principal and then issue mortgage pass through certificates which will be underwritten and distributed by Llama Company.

"Working closely with Alice Walton and with Llama Company's substantial infusion of capital and making use of its multi-faceted investment banking and underwriting expertise has enabled BCMC to become one of the most innovative and diversified real estate finance organizations in the country," Manning said. "This significant joint venture is truly one of the great moments in Boston Capital's 22-year history."

Alice Walton stated that "This joint venture between two strong partners will prove to be of tremendous importance to the real estate industry. We saw a great opportunity when the joint venture was first conceived. We now have a mortgage company which not only has the capacity to act as an originator of multi-family and commercial mortgage loans but also will issue its own Commercial Mortgage-Backed Securities (CMBS)."

At the briefing, Manning also reported that J. Kingsley Greenland 11 has been named president of Boston Capital Mortgage Company, and that the company's former chief operating officer, S. Michael Lucash, has joined Llama Company as managing director of the firm's Real Estate Finance Group.

About Boston Capital Mortgage Company

Commenting on the new entity, Mr. Greenland, BCMC's president, explained that the company will make a strong presence as it competes against conduits which have not provided the best execution for borrowers needing to finance their multifamily and commercial properties. As a principal and CMBS issuer, Boston Capital Mortgage Company will bring efficiencies to the market which will result in superior service and competitive rates for its customers.

Lucash, managing director of Llama Company's Real Estate Finance Group said, "This joint venture between two powerful companies provides not only capital but unique industry expertise which will make BCMC the premier and most effective commercial conduit in the country. What makes this venture truly unique is that there has been a merger of goals between the mortgage and investment banking functions. We are all focused on the same levels of profitability."

Lucash said the first mortgage-backed security is expected to be issued this Fall. "The market for commercial mortgage - backed securities is still in its formative years," he said. "We believe that our joint venture will accelerate its maturation. Llama has already received strong interest from the institutional marketplace, including pension funds, life insurance companies, banks, and other large institutional investors seeking secure investments in the real estate transaction."

Greenland outlined how BCMC will source its product by stating, "Mortgage bankers, banks and brokers will be invited to participate in the program as correspondents. We will provide these institutions with the level of service they need to satisfy their customers. Furthermore, we will be encouraging correspondents to bring us loan applications from secondary and tertiary markets which are normally excluded from other lender programs."