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Debt deals have bankers talking.

At its March monthly lunch meeting, the Real Estate Board of New York Finance Committee, chaired by Marc Haves, of Haves, Pine & Seligman, hosted a panel of top mortgage bankers entitled "Notable 2005 Debt Transactions--the Broker's Perspective."

Joining the panel, moderated by lone S. V. Permison of MetLife, were Augustus J. Costaldo, of Houlihan-Parnes/iCap Realty Advisors, Patrick Hanlon, of The Ackman-Ziff Real Estate Group, LLC, Jeffrey Horowitz, of Cooper Horowitz, and Scott Singer, of The Singer and Bassuk Organization.

The panelists highlighted various transactions ranging in size from $32 to $600 million.

Key themes emerging included significant spread compression between high and low LTV transactions, high degree of structure to transactions, competitive bidding from Wall Street, insurance companies and commercial banks and aggressive lender underwriting and terms to win deals.

Panelists described structures funding over 90% LTVs at 1.0 debt service coverage based on recognition of future value, structures providing tremendous flexibility of earnout conditions and potential future development and the common use of interest only debt.

They also noted that mortgage bankers are increasingly required to bring first mortgage debt, mezzanine debt and equity to the table to win business.

The next lunch meeting of the REBNY Finance Committee will be a joint meeting with the Sales Brokers Committee on April 24, 2006 at the Yale Club and, as always, will host an industry panel or keynote speaker. All members are encouraged to attend.
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Publication:Real Estate Weekly
Article Type:Brief article
Geographic Code:1USA
Date:Apr 5, 2006
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