Ramsfield Hospitality Finance started by Richard Mandel

Real Estate Weekly, June 4, 2003

In response to a distressed hospitality real estate sector, Richard Mandel, former president of Kennedy-Wilson Inc.'s Commercial Investment Sales Group, has formed Ramsfield Hospitality Finance (RHF), a new investment firm set up to provide mezzanine financing for hotel owners and investors.

Mandel's joint venture partner is an affiliate of Cargill Value Investment, based in Minnetonka, Minn.

"The time is right to launch Ramsfield Hospitality Finance as we feel hotel property values are close to bottoming," says RHF president Richard Mandel.

Ramsfield Hospitality Finance will provide subordinate loans ranging from $3 to $12 million on properties located in the top 25 U.S. hotel markets and that are valued at $15 million to $60 million.

"Our capital will be competitive and our execution streamlined so that we can quickly respond to borrowers' needs," Mandel stated.

Mandel brings a wealth of success to his new venture. Under his leadership at Kennedy-Wilson, the company completed transactions valued at over $3 billion in a five-year period. Mandel also founded Kennedy-Wilson's Japan operation, which he later spun off as a separate public company.

Helping Mandel build the business at Ramsfield Hospitality Finance is managing director, Raymond M. Anthony, a 20-year veteran in real estate lending. Anthony is responsible for originating, structuring and acquiring collaterized financing on hospitality properties.

Anthony was previously a principal and the chief investment officer of Allegiance Capital Partners, a boutique financial institution providing structured mezzanine loans and investments behind restricted first mortgage loans on commercial real estate. He was also a managing director with Nomura Securities' Real Estate Division and a past president of the Commercial Mortgage Securities Association (CMSA). Rounding out the new RHF team is senior associate Erik Warner, who will mainly underwrite potential investments, compile due diligence and asset manage RHF's investments. Warner was formerly a senior associate with Jones Lang LaSalle, where he worked with the international advisory/banking group for the lodging and gaming industry.