Bankers working with corps

Real Estate Weekly, Nov 7, 2001 by Richard Koch, M. Robert Goldman

In an effort to expand their origination volume and client base, an increasing number of mortgage bankers are turning to companies that own their own real estate (owner-occupants) as a means of providing their lenders with access to financing opportunities that have traditionally been met by the company's commercial bank.

This market is largely untapped as most "users" are unfamiliar with the real estate capital markets and they don't have the time or resources to locate different avenues of funding. Often real estate lenders will often consider loans without personal guarantees and for longer terms than commercial banks.

One recent example of this is a growing trend by many mortgage bankers to work with large corporations to structure and place commercial and industrial loans for properties they own. These companies have a variety of financing needs and mortgage bankers have the tools to effectively and efficiently service them. As a result, it is a "win-win" situation for everyone involved.

M. Robert Goldman and Company of New Jersey, Inc. recently arranged $13 million in financing for a 324,445-SF warehouse in Woodbridge, N.J. owned and operated by Amerex Group, Inc., one of the largest distributors of outerwear in the country.

The refinancing loan will be used by the borrower, Woodbridge Enterprises, Inc. -- a company controlled by the principals of Amerex -- to pay off existing debt, provide capital for strategic acquisitions, as well as possibly develop a 200,000-SF building on an adjacent site. The self-liquidating loan was placed with Guardian Life Insurance Company of America, whom MRG-NJ represents.