Printer Friendly

NEW BARNETT, SHOPTAW-JAMES JOINT VENTURE WILL INCREASE AVAILABILITY OF COMMERCIAL REAL ESTATE LOANS

 JACKSONVILLE, Fla., Oct. 28 /PRNewswire/ -- Barnett Banks, Inc. (NYSE: BBI) is establishing a joint venture with an affiliate of Shoptaw-James, Inc., Atlanta-based mortgage bankers, to provide long- term commercial real estate financing.
 The venture, Main America Capital, will provide mortgage loans up to $3 million on commercial properties in the Southeastern United States. It will focus on apartments, industrial buildings and shopping centers.
 Main America Capital will make commercial mortgages and then securitize pools of these loans for sale to institutional investors. This process has been used recently by the Resolution Trust Corporation to liquidate portions of its commercial real estate portfolio.
 "Our goal is to provide financing to the sector of the commercial real estate industry that has had a more difficult time finding loans in recent years as savings and loans have closed, insurance companies have pulled out of the market and other financial intermediaries have reduced their exposures," said William R. Nicholson, Barnett's director of commercial real estate. "This will be a complement, not a substitute, for Barnett's existing commercial real estate lending activities. This process gives us an opportunity to better serve our markets by providing another source for loans when, for such reasons of balance sheet management, we do not feel our banks can lend for their own portfolio. The concept is similar to the way banks originate residential mortgages and sell them into the secondary market, providing more liquidity in the process."
 The venture will provide Barnett with a new source of fee income, and better access and relationships with the permanent lending community and investment banks.
 Bill W. Shoptaw, chairman and chief executive office of Shoptaw- James, Inc., said, "The concept of originating commercial real estate loans and converting them into marketable securities is a natural extension of our loan underwriting and servicing activities. With the support of Barnett Banks, Main America Capital will have the resources and the breadth of professional experience to fill a market void for smaller mortgages."
 Shoptaw-James, Inc. is one of the Southeast's largest privately owned commercial mortgage banking firms, providing a broad range of real estate financial services to institutional investors. Headquartered in Atlanta, Shoptaw-James, Inc. has branch offices in Tampa, Fla. and Raleigh, N.C.
 The venture is subject to regulatory approval.
 With $37 billion in assets and 632 offices in Florida and Georgia, Barnett Banks, Inc. is the leading financial institution in Florida and the 19th-largest in the United States. The company's stock (BBI) is listed on the New York Stock Exchange.
 -0- 10/28/93
 /CONTACT: Bob Stickler (media), 904-791-5437, or home, 904-396-9284, or Susan Friloux (analysts), 904-791-7627, or home 904-246-2965, both of Barnett Banks/
 (BBI)


CO: Barnett Banks, Inc.; Shoptaw-James, Inc. ST: Florida, Georgia IN: FIN SU: JVN

JB-AW -- FL012 -- 7843 10/28/93 11:16 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 28, 1993
Words:464
Previous Article:LABARGE ANNOUNCES 58 PERCENT INCREASE IN NET EARNINGS FOR ITS FISCAL 1994 FIRST QUARTER
Next Article:ENERGY BIOSYSTEMS ANNOUNCES NEW VICE PRESIDENT, FINANCE
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters