Mission Capital is expanding its Southeast presence with two new additions to its Palm Beach Gardens office.
Mission Capital expands southeast
presence
May 1, 2015
Mission Capital is expanding its Southeast presence with two new additions to its Palm Beach Gardens office. Terry Stronginis joining as director in the Debt and Equity Finance Group andRob Beyer will be relocating from the firm’s New York City headquarters as a director in the same group.
Prior to joining the team, Strongin headed the commercial lending group for a major REIT, and worked as a principal in boutique real estate investment and advisory companies. He will now be responsible for sourcing, structuring and executing debt and equity financing across the US.
As part of a strategic plan to grow its Florida presence and expand its Southeastern U.S. coverage capability, Mission Capital Advisors announced a significant new hire and the relocation of one of its top executives.
Mission Capital Expands Southeastern U.S. Presence With Two
Additions to Florida Office
Terry Strongin Joins Firm as Director, While Director Rob Beyer Relocates from NYC
PALM BEACH GARDENS, Fla. (April 29, 2015) — As part of a strategic plan to grow its Florida presence and expand its Southeastern U.S. coverage capability, leading real estate capital markets solutions firm Mission Capital Advisors today announced a significant new hire and the relocation of one of its top executives.
A veteran of the commercial real estate and securities industries, Terry Strongin joins Mission Capital’s Palm Beach Gardens office as a Director in the Debt and Equity Finance Group.
Additionally, Rob Beyer, also a Director in Mission Capital’s Debt and Equity Finance Group, will relocate to the Palm Beach Gardens office from the company’s headquarters in New York City.
Since establishing a presence in Florida, Mission Capital has proved to be one of the Southeast’s most active arrangers of real estate debt and equity. Since 2010, the firm has arranged 12 deals in the Southeast, with a total value of approximately $550 million.
Noteworthy financings arranged by Mission Capital in Florida include the $16.75-million first-mortgage financing of Doral Court, a 209,075-square-foot office building in Doral; the $21-million refinancing of the Freehand Miami, a 256-bed, upscale boutique hotel located in Miami Beach; the $19.2-million construction financing of Sage Beach, a 24- unit luxury oceanfront condominium development in Hollywood; the $106-million construction financing of Echo Aventura, a 190-unit luxury condominium high-rise in Aventura; the $10-million acquisition financing for Hotel 18, a 45-key hotel in Miami Beach; the $38.5-million renovation financing of Garden South Beach, a 133-key, full- service hotel in Miami Beach; and the $22.5-million financing of a land loan for Echo Brickell, a 166-unit luxury condominium high-rise in Miami.
“The Southeastern U.S. is one of the regions that we’re strategically focused on. Aggressive expansion of our Debt & Equity Finance Group here is well supported by our ability to attract the market’s top talent and the strong economic activity and growth prospects,” Mission Capital Principal David Tobin stated. “As we work to expand our coverage of the region, we’ll continue to seek out talented commercial mortgage brokers with skill sets that are strongly aligned with the needs of our clients.”
In his new role, Strongin is responsible for sourcing, structuring and executing both debt and equity finance transactions nationwide. Additionally, he sources and executes commercial real estate investment sales transactions for the firm’s clients. Prior to joining Mission Capital, Strongin headed the commercial lending group for a major real estate investment trust, and worked as a principal in boutique real estate investment and advisory companies. Career activities include commercial real estate lending, joint venture advisory, non-performing loan valuation and portfolio sales, equity syndication, commercial real estate brokerage, real estate development, and direct real estate investing. He has advised both private and institutional investors including major banks, top tier investment banks, FDIC, and large insurance companies and been directly responsible for negotiating, structuring, and closing over $500 million of real estate equity and debt transactions. “Mission Capital has demonstrated its ability to execute transactions in Florida and a commitment to growing its Debt & Equity Financing business line in the state and the Southeastern region, and I’m excited to play a part in the expansion,” Strongin said. “I look forward to driving new businesses and cementing the firm’s key relationships in the region.” In addition, Beyer, who is a graduate of the University of Miami, is relocating to a market with which he is extremely familiar. During his time at Mission Capital, where he is responsible for the origination, structuring and placement of debt, mezzanine and equity capital on behalf of real estate owners and developers, he has completed a number of significant deals. Examples include securing $37 million in financing on behalf of The Siegel Group, which operates flexible-stay apartment communities in Las Vegas known as Siegel Suites and a highly structured shopping center refinance in the Midwest. He is also raising $30 million in construction financing and joint venture equity for the development of Union Village, a 125-bed skilled nursing facility and 40-bed long-term acute care hospital in Henderson, Nevada. Prior to joining Mission Capital, Beyer worked for such prominent real estate firms as the Related Companies and a real estate investment bank in New York, where he consummated over $1 billion in equity and debt transactions for real estate companies throughout North America, Latin America and the Caribbean, with a particular focus on hotel assets. “My time at Mission Capital has been extremely gratifying, and I’m very excited to relocate to Florida and serve as a leader of the firm’s effort to grow its footprint in this part of the country,” Beyer said. “I’m particularly interested in leveraging my experience in the hospitality and senior care sectors to help establish a pipeline of future projects in Florida, where we believe much opportunity exists.”
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
Lenders including Bank of America Corp. and Citigroup Inc. are accelerating their sales of soured U.S. mortgages as investment firms compete to buy the debt.
Sales of U.S. delinquent mortgages are accelerating as lenders rush to meet demand from hedge funds and private-equity firms that has sent prices surging. Mission Capital Advisor’s Principal David Tobin discusses the topic.
The FDIC is marketing a $215.5 million portfolio of mixed quality debt on commercial and residential properties in 20 states. The FDIC is seeking bids for an outright sale, but also is willing to sell a stake in the portfolio via its structured-sales program. Investors can begin conducting due diligence on Aug. 23. Bids are due Oct. 1. Mission Capital is running the auction.
FDIC Floats Pool of Seized Mortgages
The FDIC is marketing a $215.5 million portfolio of mixed- quality debt on commercial and residential properties in 20 states. The 446 assets, which the agency assumed from 20 failed banks, range from performing loans to foreclosed properties. Commercial buildings account for $166.9 million, or 78%, of the underlying collateral. Another $22.4 million, or 10%, is land suitable for residential development. Acquisition, devel- opment and construction loans and land loans make up the rest of the package. The FDIC is seeking bids for an outright sale, but also is willing to sell a stake in the portfolio via its “structured-sales” program. Investors can begin conducting due diligence on Aug. 23. Bids are due Oct. 1. Mission Capital is running the auction. In a structured sale, the winning bidder would work out the assets and split the proceeds with the FDIC, which may be will- ing to provide low-cost financing for the purchase. In the 34 structured sales completed since the program began in May 2008, the stakes sold by the FDIC ranged from 20% to 50%. The average balance on the mix of fixed- and floating-rate loans in the offered portfolio is just under $500,000. Some 192 mortgages totaling $70.9 million, or 33% of the overall balance, are current on payments. Another 165 mortgages totaling $92 million (43%) have already matured. The rest are delinquent by at least a month, including 72 loans totaling $48.5 million (23%) that are more than 120 days past due. Some 92 mortgages with balances adding up to $57.7 mil- lion (27%) mature in the next year, and 63 loans totaling $18.9 million (8.8%) come due in the year after that. The remaining $46.9 million of notes have maturities ranging up to 25 years from now. The collateral properties are concentrated in Pennsylvania (27% of the overall loan balance), Florida (12.7%) and Virginia (12.3%). Loans that the FDIC inherited from Nova Bank of Ber- wyn, Pa., represent the largest share (33%), followed by mort- gages seized from Bank of the Commonwealth in Norfolk, Va. (13.1%).
COMMERCIAL MORTGAGE ALERT: Aug. 16, 2013, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700
Mission Capital’s David Tobin comments on the current trend of fixed rates.
Fixed-Rate Focus Could Spell
Trouble For Smaller Banks
By Andy Peters
April 3rd, 2013
Community bankers know they must prepare for an eventual rise in interest rates. One way to get ready involves making variable-rate loans, but that task is proving daunting for many banks. Just ask Paul Erwin, chief financial officer at Nuvo Bank & Trust in Springfield, Mass., who says it is tempting to stick with fixed-rate loans because they produce immediate profits. “You can make profits today, even though the yield is low,” he says. Banks can get in trouble if they are too reliant on fixed rate products, especially on longer-term loans, says Chris Marinac, an analyst at FIG Partners. Those banks will face significant pressure when the Federal Reserve Board ratchets up interest rates. “You don’t want to have a bank making a disproportionate amount of eight- to 10-year loans that are fixed at 3.75%,” Marinac says. “When rates go up, they’re going to hop up a lot, by 150 or 200 basis points. You could really be mismatched. Most large banks are well-positioned for Fed tightening, according to data from SNL Financial. At banks with at least $100 billion of assets, the median gap between short-term assets and short-term liabilities, as a percentage of assets, was 22% at Dec. 31. It is a different story at small banks. The median gap at banks with less than $2 billion in assets was 5.6% at the end of last year. Banks with a high percentage of short-term loans can react quickly to changing rates. Variable rates add even more flexibility. Many small banks are struggling with the issue. “It’s a two-edged sword,” Erwin says. “If you fund short and book long, you get [a better short-term return]. But you would get killed if rates go higher.” Regulators have long harbored concerns about interest rate risk. The Federal Deposit Insurance Corp., as part of a series of technical assistance videos, plans to include a program that focuses on managing interest rate risk. “If rates went up today, you could have serious consequences,” Daniel Frye, the FDIC’s Boston area director, said during a Wednesday meeting of the agency’s advisory committee on community banking. “Not to the extent it would cause banks to fail, but it would put them in a position where it’s difficult to absorb credit costs.” Many community banks could end up in a precarious position when rates rise, Marinac says. In recent annual reports, about 80 banks disclosed data on the mix of loans in their portfolios. Of those, five banks reported that fixed-rate loans made up at least 85% of total loans, Marinac says. At Dec. 31, fixed-rate loans made up about 91% of the total loans at Bank of Marin Bancorp (BMRC) in Novato, Calif. To be sure, banks can migrate their risk by relyng on shorter durations. They can also use interest rate swaps as a hedge. “These hedges allow us to offer long-term fixed-rate loans to customers without assuming the interest rate risk of a long-term asset by swapping our fixed-rate interest stream for a floating-rate interest stream,” the $1.4 billion-asset Bank of Marin said in it’s annual report. Bank of Marin spokeswoman Sandy Pfaff declined to comment further. Swaps have limited use as a hedge. For instance, the $13 billion-asset IberiaBank (IBKC) uses interest swaps to cover less than half its fixed-rate loans, Marinac says. The Lafayette, La., company has roughly $3.6 billion in loans that it doesn’t get hedge against. “They know you can’t hedge everything because it’s too expensive,” Marinac says. Smaller banks should remain cautious about hedging because of it’s complexity. “You need to go into it with a well-though-out plan,” Frye said. “You really need to get it right before you enter a hedging strategy.” Another problem is that many borrowers demand fixed rates to “lock in low-rate financing,” says David Tobin, a principal at Mission Capital Advisors. It is very hard for banks to turn away business when credit-worthy borrowers are hard to come by. “If I’m a bank with a lot of fixed-rate loans, the good news is that I’m making a tremendous amount of money today,” Tobin says. Plus, some fixed rate loans may be safe to hold when rates rise. “If you have a legacy fixed-rate book that had some credit issues, rising rates aren’t going to affect [the portfolio] because those borrowers couldn’t refinance anyway,” Tobin Says.
Mission Capital Advisors, LLC, one of the leading capital markets advisory firms in the country, announced today that it completed $3.79 billion of loan sales in 47 separate transactions in 2012. Its Debt & Equity Finance team has completed $730.5 million in transactions since its inception in 2011 in 18 separate transactions.
David Tobin, one of the Principals of Mission Capital Advisors, was named one of the 50 Most Important People in Commercial Real Estate by the Commercial Observer.
BY CARL GAINES (/AUTHOR/CARL-GAINES/) MARCH 5, 2013, 7:30 A.M.
ant People in Commercial Real
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Founded by David Tobin in 2002 as just a five-person firm focused on note sales, wi some debt and equity capital-raising activities, Mission Capital Advisors is brimmin with both business and employees—so much so that Mr. Tobin said they’ll be lookin for larger office space when their current lease is up.
“Fast-forward to 2008, 2009—business has been steadily increasing up until then, and then it really took off,” Mr. Tobin said. “Even though our note sale business wa growing nicely during the upturn, it’s a fundamentally counter-cyclical business. So when banks started going sideways, we really kicked into high gear.”
Major contracts with the FDIC and the Federal Reserve Bank of New York followed.
2012, Mission traded roughly $3.8 billion of commercial and residential real estate loans, which represented a 23.5 percent increase over the year previous.
Then, over the course of both 2011 and 2012, Mission closed $730.5 million of debt and equity transactions. This volume includes land loans for condo developments i New York and Florida.
Asked how the debt and equity side compares with the note sales side, and how the two shift as a percentage of Mission’s business, Mr. Tobin explained by taking a loo back over the past several years.
“It was basically zero in 2009,” he said of the volume of debt and equity business. Now, he pointed out, the firm has staffed up that group, a reflection of how that portion of the business has grown. “From zero, I would say that if you take our 2011 and 2012 totals, which probably measure somewhere on the order of $8 billion of debt sold, those guys have done close to $1 billion of debt and equity over the same period.”
He estimated that this made it 10 percent of their business and added that “I would expect [it] within two years to be 50 percent of our business.”
The Mortgage Observer asked Mr. Tobin if having a multifunctional business—in which clients buying sub-performing and distressed debt deals on the private equit side return to invest JV equity in real estate deals Mission arranges—was always a goal.
“It was always the intent, but the debt trading side was the thing that took off immediately when we started the firm in 2002,” he said. “So in 2002 we were still cleaning up the ’98 mess and the dot-com implosion mess, and that accelerated to
’06, and it was busy, and we did new origination trading where banks are buying portfolios of newly originated loans and trading them and syndicating them. When the wheels came off everything, we were just perfectly positioned to help clean up the mess.”
Next up for the firm, he said, is investment sales. “We’re licensed in a number of states, and we’re rolling out that whole platform, because it dovetails well with the note sales platform,” Mr. Tobin said. “Ideally, we will be a very diversified, multiple office shop at the end of 2014.”
National Academy Puts Three Carnegie Hill
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The Leaderboard section in each issue of Forbes highlights three entrepreneurs doing really cool things who are worth watching. Mission Capital’s David Tobin was featured in November’s issue.
Up and Comers: Priya Haji, David Tobin, Amy Jo Martin
In the Leaderboard section in each issue of Forbes we highlight three entrepreneurs doing really cool things who are worth watching. Meet our latest Up And Comers:
The serial social entrepreneur, 42, got into business as a teenager in Texas, helping her father build a free health clinic. In 2004 the Stanford grad founded World of Good, which sold products made by women in more than 70 countries; eBay bought it in 2010. Her current company, SaveUp (founded in 2011), is a gamelike site that links to users’ financial accounts and awards points for saving money and paying down debt. Points give users a shot to win $2 million, cars, vacations and gift cards. SaveUp has raised nearly $7 million and has helped members bank $149 million and pay off $122 million in debt.
David Tobin: Mission Capital
Advisors
The Syracuse English major won his first job in Dime Bancorp’s distressed real estate group in 1992 after talking with the hiring manager about writers Charles Bukowski and Jerzy Kosinski, a shared interest. Tobin, 42, started his own distressed real estate loan brokerage, Mission Capital, in 2002 in a SoHo loft. (Neighbors: indie record labels and Keith Richards’ business manager.) Today Mission uses its digital platform to enable 35,000 active clients to bid and conduct due diligence on $40 billion in loans a year. Now based in Tribeca, Mission has logged $60 billionplus in financing and sales overall.
The Mortgage Observer features Mission Capital’s Jordan Ray as one of its “20 On The Rise” – Top Commercial Mortgage Brokers Under 35.
20 on the llisc / Nm·cmbcr lll 2
ON THE
TOP COMMERCIAL MORTGAGE BROKERS UNDER 35
Back in September, we sent word out that we were looking for the best and brightestamongcommercial mortgagebrokersworkingin the New York tristate area.The one caveat? They had to be 35 or under or fairly newly 36,we decided as the nominations rolled in.With some real legends firmly established in the field, we were curious to find out about the younger generation nipping at their heels. What we got was a real variety of commercial mortgage professionals, racking up an impressive volume offinancings-the youngest of whom, now 24, closed over $50 million in transactions in his first six months on the job.
One of them also provided a nod to the past, as his family harks back
to the early days of the business.
With our 20 on the Rise, The Mortgage Observer found that the future is bright– and in good hands.
JORDAN RAY
ManagingDirector of theDebt andEquity AdvisoryGroup at MissionCapti alAdvisors llEI
Jordan Ray is directly involved in each transaction of Mission Capital Advisor's finance group, which in 2012 will close over
5700 million of JV equity and debt. Prior
to joining Mission Capital in 2009, Mr. Ray served as managing director at the Ackman Ziff Real Estate Group.A total capitalization of just under $600 million for the Trump Bcachwalk Project in Waikiki has been his largest deal.
"To be successful in this business,you have to like what you do," he said. Mr. Ray takes pride in being part of a firm that focuses heavily on new technologies.A team of mony
"children of the technology revolution" in their 30s or 40s helped to build "a very different kind of form,"he said. Born in Montreal,Canada,he grew up in Southern Florida.He holds a master'sdegree in real estate from New York University and a B.A. in fonance from American University.
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Mission Capitol Advisor's Debt and Equity Advisory team has raised more than $8 billion of capitol for real estate owners and developers nationwide during their careers. Mission Capitol is one of the leading capitol markets advisory firms in the country,having completed more than $55 billion of financing,loon sole and Fannie Moe / Freddie Moe transactions since 2002. Contact Jordan Ray,Jason Cohen, Ari Hirt or David Tobin at 212–925-6692 to discuss your debt and equity financing needs.
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