Carlton tapped to sell $1b of distressed real estate loans

Real Estate Weekly,  August 29, 2007  

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According to Chairman Howard L. Michaels, real estate investment bank Carlton Advisory Services has been retained by several Wall Street investment banks and commercial banks to assist them with the marketing and sale of over one billion dollars in troubled real estate loans. The loans are primarily a combination of failed condominium and development projects in the Southeast, sub-performing subprime residential mortgages and small balance commercial mortgages spread throughout the country.

Carlton has previously sold in excess of $7 billion in whole loans for various institutions. This business, which previously had slowed as a result of the strong U.S. economy and robust capital markets, has now picked up tremendously, according to Michaels.

A summary of the pending loan sale transactions are as follows: $120 million of residential subprime loan assets on behalf of a Wall Street investment bank; $16.5 million nonperforming mezzanine loan pertaining to a condominium conversion project for a subsidiary of a top 15 bank holding company; $480 million commercial floating rate pool on behalf of a private finance company; $76 million of residential option ARM loan assets on behalf of a Wall Street investment bank; $21 million nonperforming loan secured by a first lien on a condominium conversion project on behalf of a top 30 bank holding company; $112 million nonperforming development loan portfolio on behalf of a top 25 bank holding company; $106 million nonperforming development loan portfolio on behalf of a top 35 bank; $35 million residential subprime loan portfolio (negotiated transaction between a top 10 bank and a regional niche bank); $20.9 million of residential home equity loans on behalf of a Wall Street investment bank.

To handle the increased growth of this business and the need for Carlton's services by financial institutions and lenders, Carlton has hired five whole loan trading professionals to work with the financial institutions and buyers of these assets. The new team members are Jason Kopeak, vice president, who prior to joining Carlton was the president and owner of Genesis Mortgage;

Mark Kreisler, vice president, whose most recent experience includes being the CEO and president of Zurich Mortgage Solutions as well as prior experience at Premier Mortgage and Merrill Lynch;

Andrew Belew, vice president, whose 23 years of combined real estate development, acquisition and experience includes being the director of asset management at Ocwen Financial and Metropolitan Mortgage Securities;

Vincent A. White, vice president, who prior to being the chief operating officer for LEI Mortgage in San Diego, was the director of Secondary Marketing for Lydian Bank and the vice president of Secondary Marketing for SIB Mortgage;

Justin R. Piasecki, vice president, has been the chief operating officer of Zurich Mortgage, as well as a vice president for the United Appraisal Network.

Co-Heads Thomas K. McCarthy, managing director, and Stephen R. Scorgie, senior vice president, run the Carlton Loan Sale Advisory Group and have sold and acquired over 10 billion dollars in residential and commercial loans, both in their prior capacity at Ocwen Financial Corporation and at Carlton over the last 18 years.

COPYRIGHT 2007 Hagedorn Publication
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