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SMITH BARNEY SHEARSON INC. FORMS STRATEGIC ALLIANCE WITH REMSEN PARTNERS LTD. TO FUND COMMERCIAL REAL ESTATE

 NEW YORK, Jan. 11 /PRNewswire/ -- Smith Barney Shearson Inc., a subsidiary of The Travellers, Inc. (NYSE: TRV), and Remsen Partners Ltd. (Remsen), a privately-held real estate funding source headquartered in New York City, announced the formation of an exclusive strategic alliance that will provide long-term financing for commercial real estate on a nationwide basis.
 Under the alliance, Remsen will provide funding to real estate owners and developers. The alliance expects to generate financings in excess of $1 billion during calendar year 1994.
 The alliance with Remsen Partners Ltd. will allow Smith Barney Shearson to expand its presence in the commercial mortgage-backed securities market. Remsen, founded in 1985, specializes in the underwriting and funding of multi-family and commercial mortgages. The firm has been involved in refinancing approximately $700 million of commercial real estate.
 "Commercial mortgage finance is a growth area for our firm and we intend to be a major force in the marketplace," said Michael D. Youngblood, managing director in Smith Barney Shearson's mortgage finance department.
 Smith Barney Shearson has significantly expanded its efforts in the commercial mortgage securities arena and served as lead or co-manager in $5 billion of mortgage finance transactions in 1993.
 "We sought out Remsen for this relationship as a result of their knowledge and background in commercial real estate portfolio financings and their reputation for client service and responsiveness," Mr. Youngblood said.
 Commenting on the announcement, William A. Teitelbaum, Remsen's managing partner, noted that, "We are extremely honored to be recognized by a quality institution like Smith Barney Shearson."
 "The bottom line is that Smith Barney Shearson has provided excellent service and committed capital for our clients. That's why we want to be part of their team," he added.
 "Remsen's nationwide network of real estate owners and mortgage bankers, coupled with Smith Barney Shearson's institutional sales force and retail office network, complement one another well," Mr. Teitelbaum said.
 "Smith Barney Shearson and Remsen are looking to establish long-term relationships with quality real estate owners across the country. This alliance serves as the mechanism to access and service these owners," he added.
 "The real estate owner wants someone who is on the scene before, during -- and most importantly -- after the financing," said Mr. Teitelbaum.
 "While rates and terms are always important, we have found that many borrowers and their counsel are now focusing on the fairness and reasonableness of our legal documents and the responsiveness and customer service provided by the lending source," said Mr. Teitelbaum.
 "Certainly this is a result of the real estate and banking environments of the 1980's," he added. Remsen is represented by the law firm of Jones Day Reavis and Pogue in the closing process.
 "We are committed to providing the highest level of service, regardless of whether we are closing a $70 million, 10-property refinancing or a single $6 million mortgage," Mr. Youngblood noted.
 The strategic alliance is designed so that a real estate owner can expect funding to take place very quickly -- typically 60 to 90 days from application to closing.
 "One other unique aspect of the strategic alliance is that the program can fund mortgages as large as $30 million -- allowing us to compete in a market segment which was previously the sole domain of insurance company type lenders," said Mr. Youngblood.
 "The $15 million to $30 million individual multi-family mortgage market has been neglected," said Mr. Youngblood. "We want to expand in this sector, because we believe this will help us to establish lending relationships with quality real estate owners," he added.
 The strategic alliance will initially concentrate on multi-family mortgages. However, the firms are actively seeking opportunities in the hotel/motel, anchored retail shopping center and industrial property sectors.
 Based in New York City, Smith Barney Shearson is the nation's second largest securities firm, with 500 offices throughout the United States and overseas. Smith Barney Shearson is a wholly-owned subsidiary of The Travellers, Inc., one of the nation's largest financial services companies, with more than $100 million in assets.
 Headquartered in New York, Remsen Partners Ltd. is a privately-held real estate funding source specializing in the underwriting and funding of multi-family and commercial mortgage loans. Remsen is in the process of opening an office in Newport Beach, Calif., in the first quarter of 1994. The company has been involved in refinancing approximately $700 million of commercial real estate.
 -0- 1/11/94
 /CONTACT: Peter Rosenthal or John Henderson of Howard J. Rubenstein Associates, 212-489-6900/
 (TRV)


CO: Smith Barney Shearson Inc.; Remsen Partners Ltd. ST: New York IN: FIN SU:

SP-JG -- NY065 -- 1057 01/11/94 14:21 EST
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Publication:PR Newswire
Date:Jan 11, 1994
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