Remsen forms mortgage program for shopping centers.
"This strategic move came about after a careful examination of the market," said William A. Teitelbaum, Remsen's chief executive officer. "We sought to avoid the pitfalls that have affected others who rushed into this business without doing their homework. In that regard, we have initially arranged a $5000 million funding commitment from overseas capital sources to fund our retail shopping center financings," he added.
"This product has already proven itself to be desirable in the market and we have reviewed over $200 million of transactions in the first few weeks alone," said Judd A. Volk, a Remsen vice president. "I expect this volume to multiply now that we have formally announced the program," he added.
The move into retail shopping center financing is part of Remsen's strategy to further enhance their position as a major force in commercial loan origination. The company is already well-positioned in the multi-family market, closing over $1 billion in loan transactions. "We are bringing the same level of commitment, reliability and expertise to the reatil shopping center market," Teitelbaum explained.
According to Teitelbaum, the focus of Remsen's program will be on regional or community shopping centers with long-term anchors, such as regional supermarkets, drug stores or department stores. However, shopping centers that lack true anchors but have good mixes of strong credit and local tenants will also be considered.
"We are very excited about the possibility of financing individual properties and portfolios that require additional vision to maximize their full market potential," said Volk.
Similar to Remsen's successful multifamily whole loan program, the new retail program will focus on individual properties in metropolitan areas throughout the country.
However, unlike the multi-family program, the retail program will have varying terms and loan structures based more specifically on the characteristics of each particular shopping center.
For example, shoping centers with a high percentage of anchor and credit tenants will receive the most favorable terms, while centers without "ideal" characteristics will still receive attractive financing. As always, large portfolios will be eligible for advantageous terms.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||Remsen Partners Ltd.|
|Publication:||Real Estate Weekly|
|Date:||Oct 12, 1994|
|Previous Article:||Major facade restoration completed at One Broadway.|
|Next Article:||Westchester sees steady absorption, declining vacancy.|