Building long-term customer relationships in real estate finance.

Since its inception in 1995, JHP Realty Advisors, Inc. has become a leading mortgage origination source in the industry. JHP Realty Advisors serves as an exclusive PruExpress advisor in the national PruExpress advisor network for the Prudential Life Insurance Company, and as an originator for Prudential Mortgage Capital Company (PMCC), the Prudential Conduit established in late 1997. Additionally, JHP has forged many relationships with local and national lenders and is presently negotiating significant third-party placement.

JHP's main goal is to build long-term customer relationships. The principal's of JHP Realty Advisors, Inc. and the Regional Directors have extensive and varied experience in the mortgage origination field. In the five years that JHP has been business, they have specialized in the financing of multi-family apartment buildings, office buildings, anchored and unanchored retail properties, warehouse and industrial properties, full and limited service hotels, health-related facilities, parking garages and self-storage facilities. More recently, JHP Realty Advisors have arranged several complex transactions that included forward commitments, earn-outs on existing properties, new construction and renovation projects, and interim loans suitable for repositioned properties. Additionally, JHP Realty Advisors has expanded its product base from long-term fixed-rate financing to include short and interim loans that feature LIBOR-based floating rate products.

James J. Houlihan, a partner in Houlihan-Parnes Realtors, Inc., is president of JHP Realty Advisors. Original Regional Directors Tom Halligan and Jeanne Cronin have been subsequently joined by Harry Woods and Gus Costaldo. Diana Gaines, who joined JHP in 1998, has been specializing in both loan origination and underwriting. Fred Mui serves as a staff underwriter and Rosa Sollecito serves as office assistant.

The various attributes of this diversified team feature extensive experience as investing principals, institutional loan originators and underwriters, active mortgage brokers, loan workout officers and project managers. In 1998 alone, JHP Realty Advisors originated over $250 million of loans for the Prudential account. Additionally, many third-party loans were placed with local institutions, other life companies and lenders active in the CMBS market. Originally concentrating at inception on local origination, JHP has expanded its mortgage production capacities to include deals throughout the United States. Recent closings include properties in Massachusetts, Connecticut, Rhode Island, North Carolina, Florida and New Jersey, as well as New York.

JHP continues to be primarily focused on growth and expansion in both borrower and lender relationships. JHP has been encouraged to broaden their horizons and position itself to be able to offer a full-service menu to their clientele.

Many of JHP's recent placements have been high-profile transactions. They include a $41 million loan on a residential complex known as The Wellesley located at 200 East 72nd Street in New York City; a $23.5 million fee loan facilitating the acquisition of The Steinway building located at 111 West 57th Street; a $33 million loan on Turtle Bay cooperative apartments located at 310 East 46th Street; and a $19 million loan on the Allied Irish Bank building at 405 Park Avenue on the corner of East 54th Street.

The Steinway transaction was notable for the quick and professional turnaround accomplished by JHP staff. The loan application was accepted on the 15th of the month and closed on the 30th. During this 15-day period, JHP completed its due diligence and processed loan documentation that created a fee and leasehold estate. This was a crucial component to the purchaser, who was under a tight time contract deadline.

JHP has processed many complex transactions recently. For instance, JHP arranged a $20 million acquisition loan of 809 First Avenue, facing the United Nations Complex. The property is located between East 45th Street and East 46 Street. The transaction is presently under review for the Real Estate Board of New York's Most Ingenious Deal of the Year for mortgage brokerage. The applicant of this property was under contract to purchase the property. The sales contract provided for a partial leaseback to the seller.

JHP was able to overcome a number of obstacles in order to close the transaction. These obstacles included a not-for-profit seller with a leaseback of space at a below market rent, and substantial space being delivered vacant at closing. The purchaser was a foreign-based not-for-profit foundation with no prior commercial real estate experience. The targeted tenants for the vacant space were primarily mission-related entities to the United Nations with sovereign immunity issues, and the landlord was obligated to perform, at its own cost and expense, substantial mechanical upgrades of the former owner's areas, as well as the common areas. Additionally, there were no significant U.S.-based individuals to execute carve-out provisions in any loan documents.

Despite all of these and other obstacles, JHP was able to arrange a transaction that closed December 18th, 1998, which satisfied the purchaser's time-of-the-essence closing requirements for that date. To accomplish this transaction, the owner followed JHP's recommendations to split the property into three condominiums and have the lender fund three separate loans with cross-default provisions.

JHP Realty Advisors remains confident in its ability to find the best solution for a borrowers' financing needs. JHP's client base features a virtual "Who's Who" of real estate owners and builders. JHP has been able to arrange and close transactions for Rose Associates, The Macklowe Organization, Henry Elghanyan and the Dimson Family, among others.

Since its inception, JHP has also marketed their services to the mortgage brokerage community. Approximately 25 percent of transactions of JHP originations have come through co-brokerage assignments or loan referrals. Many of the leading mortgage brokers in New York use JHP services when appropriate.

JHP has made a significant impact on the local financing market in the short time it has been in existence. The depth of experience provided by the members of the JHP Realty Advisors ensures comprehensive, quick solutions and the highest level of professional experience to the most difficult financing needs.