CapitalThinking completes first transaction.

CapitalThinking, Inc., a national online commercial mortgage marketplace which launched on March 1, 2000, announced the completion of its first transaction 40 days after the loan application was executed. Initiated by the borrower, M.A.G. Ohio, L.P., through the company's Internet application, the deal delivers $2.8 million in mortgage financing from JP Morgan Mortgage Capital for a 96-unit Class B multi-family property located in Mason, Ohio, just outside of Cincinnati.

David Camins, director of Real Estate Capital Markets at CapitalThinking, facilitated the transaction.

"Closing our first deal so much faster than traditional channels typically allow validates one of our founding premises: that seasoned technology and real estate professionals working together can leverage the Internet to dramatically streamline the loan process and benefit all parties in a transaction," said Heather Shively, cofounder and CEO of CapitalThinking. "The business-to-business, e-finance solution we are building and already applying will continue to re-engineer this industry, bringing efficiency, standardization and liquidity to a fragmented, paper-intensive and non-liquid marketplace."

"Working with CapitalThinking to close this deal made me realize that their web-based system has the potential to change the way our industry does business going forward," said Geoff Smith, vice president of JP Morgan Mortgage Capital. "CapitalThinking delivered a complete and accurate electronic loan package that substantially simplified the decision-making process."

CapitalThinking sought indicative quotes on the deal from five of its 20 lenders for whom the property type and loan amount was best suited. Two conduits, two commercial banks and one insurance company offered attractive loan products for the property. JP Morgan Mortgage Capital offered the borrower the most competitive rate and terms, and ultimately underwrote the loan.

In addition to arranging, qualifying and preliminarily underwriting the loan request, several additional stages of the transaction were conducted online, including document management, web-based communication through CapitalThinking's messaging system and real-time deal status updates posted by the lender as progress was made through the various stages.

A spokesperson for M.A.G. Ohio, L.P. noted, "We had full confidence in the professionalism, expertise and ability of our CapitalThinking relationship manager, David Camins, to resolve any issue standing between us and closing. JP Morgan also provided superior, round-the-clock service, working seamlessly with CapitalThinking to bring the transaction to a remarkably rapid conclusion. We felt we were in very capable hands from start to finish."