Jillian Mariutti, Director on the Debt & Equity Finance Desk here at Mission Capital, recently recorded an enlightening and engaging new podcast with the good people over at Leasing REality.

Jillian’s full episode can be found here.

And, be sure to check out their recent episode with Anthony Scaramucci, yes, that Scaramucci.

Episode Notes:

At 3:27, Jillian Mariutti discusses being a visual learner, learning from her colleagues, and how Mission Capital’s open office format provides for idea generation and collaboration. At 5:21, she mentions the importance of knowing your strengths, and also notes that she enjoys working with people and numbers. At 6:10, Jillian advises that she is continually fine tuning and mastering her craft by leveraging the expertise of individuals who have been in the industry for 30 to 40 years. At 7:22, she explains that planning, structure and organization are all crucial to her success. At 8:51, Jillian describes her morning routine, which starts with waking up at 5:30 AM and soon thereafter strengthening her mind and body through meditation and exercise. At 9:26, she talks about the importance of working hard, and at 9:49, Jillian dives into her recipe for success – intense focus, commitment, massive action and a little bit of luck. At 10:42, Jillian provides insight into networking, creating and building relationships. At 11:34, she conveys that her parents made education a priority, and how they sacrificed a great deal to send her to an all-girl private high school. Jillian also discusses graduating with top honors from the University of Pennsylvania, and spending 10 years at Wachovia on the derivatives desk. At 13:17, she discusses her passion to help others, her goal to create a scholarship fund to send one girl from South Philly every year to the private high school she attended, and being a member of the Red Hook Initiative where she tutors high schools students for the SAT and math. At 15:58, Jillian notes that people like working with people who they not only like, but also respect and who are passionate about what they’re doing. At 17:02, she speaks about being a woman in a male dominated industry, and how her former managing directors were gender blind and treated her well (as long as she was producing). At 19:23, Jillian provides us with some advice she received from one of her mentors, and that there is only a glass ceiling if you look for it. At 20:10, she describes how she dares to be different, by bringing a unique layer and perspective to the table and knowing the product better than anyone else. At 21:26, Jillian advocates on behalf of Mission Capital’s work environment, and talks about mentoring a young lady at Yeshiva University. At 23:55, she notes that the first step to her solving problems is by listening to her clients objectives, and then seeking a solution. At 25:19, Jillian discusses how failing and adversity is not always negative, and how it could lead to good if handled correctly. At 28:32, she gives us her definition of risk, and at 30:08 Jillian shares her “happy place” – the one street in Philadelphia that her whole family lives on.

Jillian Mariutti is a Director in the Debt & Equity Finance Group at Mission Capital, where she is responsible for originating and structuring real estate capital for the nation’s premier owners, investors, and developers. In addition to the finance business, Jillian focuses on sourcing and executing loan sale opportunities.

Mission Capital’s, Jordan Ray, chats about the range of clients we work with at Mission Capital. Jordan is a principal on the Debt & Equity Finance desk at Mission Capital.

ABOUT JORDAN RAY
Jordan Ray is the Principal of The Debt & Equity Finance Group at Mission, which he founded in 2009. Jordan has been honored with such industry awards as the 2016 Real Estate Finance and Investment Magazine – Mortgage Broker of the Year Award, the 2013 and 2012 Observer Top 20 under 35 and the 2017 NYU Schack Institute Financing Deal of the Year. Jordan sits on the board and co founded EquityMultiple – an online marketplace real estate finance company – in 2015. Jordan is also actively involved in UK/European real estate financing.

LEARN MORE ABOUT JORDAN RAY:
www.missioncap.com/team/?member=jray

LEARN ABOUT THE DEBT & EQUITY FINANCE DESK HERE:
www.missioncap.com/debt-equity/

VISIT MISSION CAPITAL’S WEBSITE:
www.missioncap.com

Director of Investments Jonathan Lesser sits down with Jonathan Jaeger of LWHA Asset and Property Management Services to discuss the Hospitality asset class and what individual investors should keep in mind as they do diligence on potential investments.

EQUITYMULTIPLE is the only online investing platform backed by an established real estate company – Mission Capital, a leading national real estate capital markets firm. Mission Capital is a technology-forward real estate capital markets firm built on a culture of deep client service. Founded in 2002, our complementary asset sales and capital raising platforms, combined with our diligence and consulting services, allow our institutional and governmental client-base to achieve liquidity and optimize portfolio strategy throughout the credit cycle.

Hotel Investing for Individual Real Estate Investors from Mission Capital on Vimeo.

 

About EQUITYMULTIPLE

We’re committed to making commercial real estate more accessible for individual investors.
Our team brings diverse industry experience in real estate finance, private equity, law and technology. We were brought together by a shared vision of transforming real estate investing through technology – providing a new level of access to private transactions and streamlining the investment process. While we believe in the transformative power of technology, we recognize that our platform is only as good as the people and experience behind it. We’re committed to transparency, rigorous underwriting, and investor support.

EQUITYMULTIPLE is the only online investing platform backed by an established real estate company – Mission Capital, a leading national real estate capital markets firm. Mission Capital is a technology-forward real estate capital markets firm built on a culture of deep client service. Founded in 2002, our complementary asset sales and capital raising platforms, combined with our diligence and consulting services, allow our institutional and governmental client-base to achieve liquidity and optimize portfolio strategy throughout the credit cycle.

Jordan Ray, Principal of the Debt & Equity desk, is a major proponent of FinTech that modernizes the ‘old economy’ business of real estate. Always ahead of curve and owner of an impressive CRM, you don’t want to miss Jordan’s insight.

Watch the first two parts of this video series here:
https://www.missioncap.com/news/jordan-ray-principal-on-mission-capital/

ABOUT JORDAN RAY
Jordan Ray is the Principal of The Debt & Equity Finance Group at Mission, which he founded in 2009. Jordan has been honored with such industry awards as the 2016 Real Estate Finance and Investment Magazine – Mortgage Broker of the Year Award, the 2013 and 2012 Observer Top 20 under 35 and the 2017 NYU Schack Institute Financing Deal of the Year. Jordan sits on the board and co founded EquityMultiple – an online marketplace real estate finance company – in 2015. Jordan is also actively involved in UK/European real estate financing.

LEARN MORE ABOUT JORDAN RAY:
www.missioncap.com/team/?member=jray

LEARN ABOUT THE DEBT & EQUITY FINANCE DESK HERE:
www.missioncap.com/debt-equity/

VISIT MISSION CAPITAL’S WEBSITE:
www.missioncap.com

Managing Directors of The Debt & Equity Finance Group, Melanie Herald & Jonathan More, share valuable insight on the red hot Miami Office Market in our Miami Market Update video series. This is Chapter 2 of our Miami Market Update series.

Watch Chapter 1: Miami Market Update | Transportation Connectivity here

JONATHAN MORE – MANAGING DIRECTOR – THE DEBT & EQUITY FINANCE GROUP

Jonathan More is a Managing Director in the Debt & Equity Finance Group at Mission Capital, where he is responsible for originating, underwriting and structuring commercial real estate transactions nationwide on behalf of owner-operators, private equity firms, developers and family offices. Jonathan’s diverse skill sets, deep market knowledge and industry relationships have proved critical in working through transactions and originating business over his 15-year real estate career.
Prior to joining Mission Capital, Jonathan worked on the execution and originations teams for Ackman-Ziff, specializing in financing office, retail and residential properties, as well as loan sale advisory work. At Ackman-Ziff, Jonathan structured and completed $2.0 billion of closed debt, mezzanine, preferred equity, joint venture equity and loan sale transactions. Prior to Ackman-Ziff, Jonathan worked in leasing and investment sales for the Manhattan office of CBRE Group. Jonathan received a B.A. in Economics from the University of Michigan, and an M.B.A from Columbia Business School, where he placed first overall in the Bodini Competition for Real Estate Investment & Entrepreneurship. He is licensed as a real estate broker in the state of New York.

MELANIE HERALD – MANAGING DIRECTOR – THE DEBT & EQUITY FINANCE GROUP

Melanie Herald serves as a Managing Director of the Debt & Equity Finance Group at Mission Capital where she is responsible for the origination, structuring, and placement of commercial real estate transactions on behalf of operators, developers and global institutional and family office investors. In addition to the finance business, Melanie focuses on sourcing and executing loan sale opportunities and will oversee growth in the Miami office for Mission Capital.
Prior to joining Mission Capital, Melanie was a Principal with Sienna Capital Partners where she executed over $200mm in equity fund recaps and new acquisition transactions for clients. Prior to Sienna, Melanie served as Head of Capital Markets and Investors Relations for Urban American, a multifamily operator in New York City for whom she currently consults. From 2002 – 2011, Melanie executed over $50bn of commercial and residential mortgage transactions as a senior salesperson at Goldman Sachs Melanie holds a BA from Bowdoin College, where she received a Thomas J. Watson Fellowship and earned an MBA from the Johnson School at Cornell University and served as a Student Agencies Fellow. She serves on the corporate board of PopTracker LLC, a technology and media company and FORCE, a non-profit. Melanie is a fluent Spanish speaker and holds Series 63 and 7 licenses.

About Mission Capital:
Mission Capital is a technology-forward real estate capital markets firm built on a culture of deep client service. Founded in 2002, our complementary asset sales and capital raising platforms, combined with our diligence and consulting services, allow our institutional and governmental client-base to achieve liquidity and optimize portfolio strategy throughout the credit cycle.

Learn more about the multitude of offerings at Mission Capital here: https://www.missioncap.com

Jonathan More (MANAGING DIRECTOR – The Debt & Equity Finance Group) and Melanie Herald (MANAGING DIRECTOR – The Debt & Equity Finance Group) sit down and chat about the thriving Miami Market. We start with the growing Transportation Connectivity servicing the Miami metropolis.

JONATHAN MORE – MANAGING DIRECTOR – THE DEBT & EQUITY FINANCE GROUP

Jonathan More is a Managing Director in the Debt & Equity Finance Group at Mission Capital, where he is responsible for originating, underwriting and structuring commercial real estate transactions nationwide on behalf of owner-operators, private equity firms, developers and family offices. Jonathan’s diverse skill sets, deep market knowledge and industry relationships have proved critical in working through transactions and originating business over his 15-year real estate career.
Prior to joining Mission Capital, Jonathan worked on the execution and originations teams for Ackman-Ziff, specializing in financing office, retail and residential properties, as well as loan sale advisory work. At Ackman-Ziff, Jonathan structured and completed $2.0 billion of closed debt, mezzanine, preferred equity, joint venture equity and loan sale transactions. Prior to Ackman-Ziff, Jonathan worked in leasing and investment sales for the Manhattan office of CBRE Group. Jonathan received a B.A. in Economics from the University of Michigan, and an M.B.A from Columbia Business School, where he placed first overall in the Bodini Competition for Real Estate Investment & Entrepreneurship. He is licensed as a real estate broker in the state of New York.

MELANIE HERALD – MANAGING DIRECTOR – THE DEBT & EQUITY FINANCE GROUP

Melanie Herald serves as a Managing Director of the Debt & Equity Finance Group at Mission Capital where she is responsible for the origination, structuring, and placement of commercial real estate transactions on behalf of operators, developers and global institutional and family office investors. In addition to the finance business, Melanie focuses on sourcing and executing loan sale opportunities and will oversee growth in the Miami office for Mission Capital.
Prior to joining Mission Capital, Melanie was a Principal with Sienna Capital Partners where she executed over $200mm in equity fund recaps and new acquisition transactions for clients. Prior to Sienna, Melanie served as Head of Capital Markets and Investors Relations for Urban American, a multifamily operator in New York City for whom she currently consults. From 2002 – 2011, Melanie executed over $50bn of commercial and residential mortgage transactions as a senior salesperson at Goldman Sachs Melanie holds a BA from Bowdoin College, where she received a Thomas J. Watson Fellowship and earned an MBA from the Johnson School at Cornell University and served as a Student Agencies Fellow. She serves on the corporate board of PopTracker LLC, a technology and media company and FORCE, a non-profit. Melanie is a fluent Spanish speaker and holds Series 63 and 7 licenses.

About Mission Capital:
Mission Capital is a technology-forward real estate capital markets firm built on a culture of deep client service. Founded in 2002, our complementary asset sales and capital raising platforms, combined with our diligence and consulting services, allow our institutional and governmental client-base to achieve liquidity and optimize portfolio strategy throughout the credit cycle.

Learn more about the multitude of offerings at Mission Capital here: https://www.missioncap.com

Jordan Ray (Principal) On Mission Capital [VIDEO]

Mission Capital’s Principal, Jordan Ray, discusses an array of topics about Mission Capital. From the company origins, business philosophies, to what the future of the company has in store, this is a fascinating insider’s view about the company. Watch the first two chapters below.

If you’ve ever been curious about learning more about Mission Capital, watch these videos now.

To learn more about Jordan Ray, please visit his team page here.

Construction Financing: “When To Go To Market”

Ari Hirt and Steve Buchwald of the Debt & Equity Finance Desk discuss “When To Go To Market,” a new video detailing the complexities of Construction Lending.

Highlights from When To Go To Market

  • When to approach lenders for construction financing?
  • Ideal time to approach lenders is three to six months.
  • Conditions to close: building permits, construction drawings, and buyout of major sub-contractors.
  • Risks of going out too early: lender deal fatigue, market change, and budget increases.
  • More construction financing in 2018 than 2017.

Banks have been reluctant to part with well yielding performing loans despite strong premium pricing in recent years. The common themes warranting sales include overall CRE concentration issues (>300% of total risk based capital), portfolio risk management sales (tenant exposure, lease roll, etc.), divesting of non-strategic geographies and/or high risk asset classes (e.g. hospitality) or exiting non-strategic borrower relationships (e.g. offered loan is bank’s sole asset with a borrower). M&A activity, monetizing legacy assets on disparate servicing systems or taking profits on low basis reperforming loans have also emerged as top themes for banks seeking to sell performing debt. Despite weak supply, 2016 performing sales attracted a broad bidder market from community banks to large super-regionals (who were not always able to out price smaller rivals). Transactions settling in late Q4 suffered a relatively minor post-election setback, as well as negative price adjustments following the Fed’s rate hike announcement in December. Despite the adjustment, transactions continued to execute by year end with premium pricing. 2017 has seen increased sales resulting from mergers. Additionally, the volume of conduit “kick-out” loans has increased, as smaller CMBS shops struggle to compete under “risk retention” paradigm and others close their doors.

PERFORMING COMMERCIAL & MULTIFAMILY LOAN SALES


PORTFOLIO CHALLENGE


CRE Concentration Regulatory
Guidance
Regulator guidance to banks cautions that CRE
concentration in bank portfolios should not exceed
300% of risk based capital, and the outstanding balance
of bank CRE portfolio should not grow more than 50%
during the prior 36 months

MISSION CAPITAL SOLUTION



Over-Exposure to Specific Borrower Strategic dispositions when lending limits to specific borrowers impede ability to originate new loans to the borrower
Mission Capital advises clients
nationwide on the sale of performing
Exit Non-Strategic Borrower
Relationships
Offered loan is bank’s sole relationship with a borrower
(i.e. no depository or other banking services)
loan portfolios, delivering custom asset marketing solutions via our world-class talent, proprietary

Prudent Risk Management Exiting geographies, change in credit appetite, exiting deals with tenant roll risk, divesting asset classes, etc.
technology, transactional experience, and deep relationships.

M&A Activity

Legacy or Reperforming Portfolios
Strategic disposition of assets outside desired footprint / outside lending parameters
Monetize legacy assets on disparate systems or
low basis reperforming TDRs

TRANSACTION TRADE THEME SUMMARY

Small Regional West Coast Bank


CRE Loans, Performing

Large National Commercial Bank Lender


CRE Loans, Performing

GSE Lender


Healthcare & Multifamily/Student Housing, Performing

Private Equity

CRE Loans, Performing

Premium to Par, Gain on Book Value

Premium to Par, Gain on Book Value

Gain on Book Value, Portfolio Risk Management

Gain on Book Value, Harvest Gains

$23mm total UPB, recently originated, traded at 100.85%. High demand from secondary market.
$11.6mm total UPB, traded at 100.11%. Bids ranged from 90% of par to 100.11%. High demand from secondary market, market accustomed to asset type.
$194mm total UPB, traded at 91%. Government Seller. High demand from secondary market.

$12.3mm total UPB, traded for 89%. Portfolio made up of non- seller originated loans previously acquired on the secondary market. High demand from secondary market.

KEY FACTORS

FOR UPSIDE PRICING

KEY FACTORS

FOR UPSIDE PRICING

At or above market coupon

KEY FACTORS

FOR UPSIDE PRICING

Strong cash flow and payment history

KEY FACTORS

FOR UPSIDE PRICING

LTV < 70%; DSCR > 1.3x; Maturity < 5 yrs

KEY FACTORS

FOR UPSIDE PRICING

Average asset size > $2.5mm

KEY FACTORS

FOR UPSIDE PRICING

Variable rate or limited remaining fixed rate term

KEY FACTORS

FOR UPSIDE PRICING

Reasonable floor on variable rate portion of term

KEY FACTORS

FOR UPSIDE PRICING

Prepayment protection

KEY FACTORS

FOR UPSIDE PRICING

Full recourse / Personal guarantees

KEY FACTORS

FOR UPSIDE PRICING

Credit tenant

KEY FACTORS

FOR UPSIDE PRICING

No lease hangout on single tenant loans

KEY FACTORS

FOR UPSIDE PRICING

“Full doc” / in compliance with financial reporting requirements

KEY FACTORS

FOR UPSIDE PRICING

Recent appraisals

KEY FACTORS

FOR UPSIDE PRICING

TYPES OF

INVESTORS


Banks

Mortgage REITs

Insurance Companies

Structured Finance Buyers

CONTACT

NEW YORK

Tel: 212-925-6692

FLORIDA

Tel: 561-622-7022

TEXAS

Tel: 512-327-0101

CALIFORNIA

Tel: 949-706-3001

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