CREMAC back in the game.

CREMAC, a Brooklyn-based asset management firm specializing in real estate securities and debt instruments, is launching a whole loan trading platform for discounted commercial real estate loans. The announcement was made by Joseph Cafiero, President of CREMAC.

This announcement marks CREMAC's return to the commercial real estate mortgage market. Between 1995 and 2001, CREMAC invested in over $750 million of distressed commercial mortgage loans.

Mr. Cafiero said the launch of this trading platform is tied to growing opportunities in the commercial mortgage arena, as well as his firm's efforts to raise equity capital. CREMAC is building $50 million in equity for an opportunity fund that will ultimately leverage as much as $200 million of purchase power. The fund's focus will be small balance U.S. commercial real estate mortgage loans between $1 and $10 million.

Mr. Cafiero stated, "CREMAC has the ability to effectively access mortgage product in submarkets through our national database. We feel the timing for this strategy is perfect. The real estate market has peaked and may even be over valued in certain markets.

"The risk/reward dynamics are skewed. Over-complacent and overleveraged investors are buying properties with very little margin for error.

"CREMAC has developed a dedicated special servicing platform that provides the expertise and management required to invest in credit sensitive assets. We have the capabilities to employ a variety of resolution strategies through this platform."