Wachovia's "hired gun" expands on securitization.

When Wachovia Bank wanted to create a stronger presence in the New York marketplace about two years ago, it wanted to make a statement that it was becoming a formidable competitor with a serious commitment in the real estate investment banking arena. Wachovia reached out to Chad Johnson, 38, who became its "big hired gun." Since real estate investment banking constitutes a surprisingly small network where everybody knows everybody else, Chad Johnson exiting Deutsche Bank (where he spent several years in a similar capacity) to be come managing director of Wachovia's midtown Manhattan office was a reverberating message.

A native of Dallas, Texas, Chad graduated from nearby Southern Methodist University with a B.A. in accounting and finance. He became a certified public accountant in both Texas and New York, working for Kenneth Leventhal & Co. in New York City. It was a stable occupation, but Chad felt there was more to the business than just number crunching.

He enjoyed the fast pace and action of the real estate marketplace, where he was afforded the opportunity to be an eyewitness to many exciting deals and strategies as he was completing the due diligence on his transactions. He had acquired an increasing expertise in securitization investments, a relatively new financing method in the late 1980's that was beginning to mature and become more intriguing to real estate developers.

Chad left the large accounting firm's sanctuary to become a dealmaker for New York-based Remsen Partners. He provided financial advice for single borrower real estate securitizations. His first big deal was with the Southern Management Corporation in the District of Columbia. At the time, the transaction was the largest single borrower securitization ever done.

Chad says the most important aspect to closing a deal is "going to the edge but not over it--no one wins if you over-commit, but at the same time, you often lose the deal if you can't stretch in this hyper competitive environment. This is where experience and sound market knowledge (both real estate and secondary market knowledge) enable you to win deals, make money and keep clients."

But what is still key, he said, is "developing long-term relationships with my clients (many of whom I consider among my best friends and some of the more interesting people in the world). What's better than succeeding at your job and contributing to the success of your friends? Closing a good deal is like the feeling you get after you've left a great private party."

Chad progressively cut his deal making artistry on projects like Trump Tower, 4 Times Square, 32 Ave. of the Americas, 40 Wall St., 20 Exchange and 580 Fifth Ave. Meanwhile, he cut a path that included work at GMAC and UBS after he left Remsen Partners. At Wachovia, Chad Johnson primarily structures large national loans, with a range of $50 million to several billion dollars.

"Unfortunately, even though many real estate developers are now sophisticated in the workings of securitization loans, there is a common, negative misperception based on a bunch of handed down horror stories when the securitization concept was pioneered about twenty years ago," Chad said.

"Some real estate developers make a big mistake by assuming that securitization lenders are more expensive or less accommodating than traditional lenders. This just isn't the case with large loan securitizations."

Chad is ready to jump on a plane anytime, anywhere for a good deal. He likes to feel he has the fight and spirit to do whatever he has to do, to bring in the deal!

Chad's home is in Manchester, Vermont with his wife, Kim, an attorney (who sidelined her career to be a homemaker). They are the parents of three boys.

Recently Chad Johnson took time out from his pressure-cooker schedule to be the guest of honor alongside his friend, real estate entrepreneur Howard Lorber (Prudential/Douglas Elliman) at the Guardian Angels Annual Dinner Dance in midtown Manhattan. The event was a sellout. It wasn't hard to see why.

What's next for Chad?

"I would like to grow the universe of products and clients for Wachovia," he said. "Providing capital to fill voids is a way we may create entirely new markets. The key is working with a firm that allows that to happen, meaning the environment is receptive to new ideas and the capital is available."

For those who would like to follow in his footsteps, Chad says "remember that the power is in the product and always has been."

"If you don't have good contacts and sound client relations, you really have nothing but a good idea."

And the client is, and always will be, king.

"Remember that your client is more than a one-time trade," Chad said. "Too many people on Wall Street forget that. Focus on building a business--not just picking someone off when the opportunity presents itself. It happens more than you would believe."

"Measure your success by what you should have done, not by what you did. A bunch of back-slapping in a bull market really isn't the measure of success."