Newmark Completes $409 Million of Commercial Mortgages During 1Q2018
SAN FRANCISCO--(BUSINESS WIRE)--Newmark(TM),
the largest independent commercial mortgage banking firm in the western
U.S., completed $409 million of commercial mortgages during 1Q2018
across 54 unique transactions. Further, projected 2Q2018 production
volumes of $1 billion All City Movers by June 30, 2018 indicate production is consistent
with Newmark's expectations of placing more than $2 billion by year end.
"As we move further into 2018, the market has been business-as-usual and
consistent with production expectations that mirror the past 5-6 years,"
said Michael
Heagerty, Principal and CFO with Newmark. "That being said, as
interest rates tick up, the economy continues to perform in a positive
direction and refinancing demands decrease in the near term from the
dearth of placements in 2008 and 2009 expect that we are in a cycle
transition in 2018. We are also focused with our industry peers on a
legislative agenda in Washington that will have long-term impacts on
commercial finance moving forward, and are working diligently with our
trade associations to navigate the evolutions of legislation on this
front."
In terms of capital requirements for unique asset classes, the active
property types financed by Newmark during 1Q2018, in order from highest
descending, included multifamily, office, and retail assets; with the
company's Los Angeles, San Francisco and Seattle production offices
showing the highest transaction volumes during the period.
Heagerty pointed to the following trends as worthy of consideration at
the close of 2017:
1Q2018 Production - Commercial mortgage finance placements performed
as expected in 1Q2018, with overall rates remaining at historic lows.
Production was consistent with Newmark's expectations for the year,
with the company anticipating exceeding $2 billion of total production
in 2018.
2018 Interest Rates - Treasury rates are increased in 2018, but spread
compression is compensating to keep commercial mortgage finance rates
at historic lows for the near term.
Legislative Agenda - Newmark's executive leaders are working through
industry peer organizations like the Mortgage Bankers Association, the
Commercial Real Estate Finance Council and the California Mortgage
Bankers Association to help shape the emerging critical industry
issues surrounding Federal GSE, HVCRE, HMDA, Tax Reform and extension
of the National Flood Insurance Program legislation later in 2018.
Capital Sources - Newmark placed an above average number of commercial
mortgages with life insurer sources in 1Q2018, indicating this class
of lender has a growing and healthy appetite for commercial real
estate allocations.
About Newmark:
Newmark, a privately held company based in San Francisco, is a full
service mortgage banking firm with an extensive lineup of correspondent
lenders utilizing Newmark's production, closing and servicing
capabilities. Established in 1991, Newmark is currently staffed by over
70 employees in regional offices throughout the western United States.
The company's national servicing platform valued in excess of $10
billion represents more than 1,300 loans located in 40 states. Newmark
is rated as a Primary Servicer by Standard & Poor's and is one of a
select few non-banking/non-insurance chartered companies with this
designation. For more information please visit www.newmarkrealtycapital.com.
NEWMARK is a trademark of Newmark Realty Capital, Inc. NEWMARK & Design
and NEWMARK REALTY CAPITAL are registered trademarks of Newmark Realty
Capital, Inc.
https://www.businesswire.com/news/home/20180503006645/en/Newmark-Completes-409-Million-Commercial-Mortgages-1Q2018
the largest independent commercial mortgage banking firm in the western
U.S., completed $409 million of commercial mortgages during 1Q2018
across 54 unique transactions. Further, projected 2Q2018 production
volumes of $1 billion All City Movers by June 30, 2018 indicate production is consistent
with Newmark's expectations of placing more than $2 billion by year end.
"As we move further into 2018, the market has been business-as-usual and
consistent with production expectations that mirror the past 5-6 years,"
said Michael
Heagerty, Principal and CFO with Newmark. "That being said, as
interest rates tick up, the economy continues to perform in a positive
direction and refinancing demands decrease in the near term from the
dearth of placements in 2008 and 2009 expect that we are in a cycle
transition in 2018. We are also focused with our industry peers on a
legislative agenda in Washington that will have long-term impacts on
commercial finance moving forward, and are working diligently with our
trade associations to navigate the evolutions of legislation on this
front."
In terms of capital requirements for unique asset classes, the active
property types financed by Newmark during 1Q2018, in order from highest
descending, included multifamily, office, and retail assets; with the
company's Los Angeles, San Francisco and Seattle production offices
showing the highest transaction volumes during the period.
Heagerty pointed to the following trends as worthy of consideration at
the close of 2017:
1Q2018 Production - Commercial mortgage finance placements performed
as expected in 1Q2018, with overall rates remaining at historic lows.
Production was consistent with Newmark's expectations for the year,
with the company anticipating exceeding $2 billion of total production
in 2018.
2018 Interest Rates - Treasury rates are increased in 2018, but spread
compression is compensating to keep commercial mortgage finance rates
at historic lows for the near term.
Legislative Agenda - Newmark's executive leaders are working through
industry peer organizations like the Mortgage Bankers Association, the
Commercial Real Estate Finance Council and the California Mortgage
Bankers Association to help shape the emerging critical industry
issues surrounding Federal GSE, HVCRE, HMDA, Tax Reform and extension
of the National Flood Insurance Program legislation later in 2018.
Capital Sources - Newmark placed an above average number of commercial
mortgages with life insurer sources in 1Q2018, indicating this class
of lender has a growing and healthy appetite for commercial real
estate allocations.
About Newmark:
Newmark, a privately held company based in San Francisco, is a full
service mortgage banking firm with an extensive lineup of correspondent
lenders utilizing Newmark's production, closing and servicing
capabilities. Established in 1991, Newmark is currently staffed by over
70 employees in regional offices throughout the western United States.
The company's national servicing platform valued in excess of $10
billion represents more than 1,300 loans located in 40 states. Newmark
is rated as a Primary Servicer by Standard & Poor's and is one of a
select few non-banking/non-insurance chartered companies with this
designation. For more information please visit www.newmarkrealtycapital.com.
NEWMARK is a trademark of Newmark Realty Capital, Inc. NEWMARK & Design
and NEWMARK REALTY CAPITAL are registered trademarks of Newmark Realty
Capital, Inc.
https://www.businesswire.com/news/home/20180503006645/en/Newmark-Completes-409-Million-Commercial-Mortgages-1Q2018
