bad credit cash advances
March 9th, 2010 NEW YORK — Island Capital Group LLC (“Island Capital”), a private real estate
oriented merchant banking firm controlled by Andrew L. Farkas, and
Centerline Holding Company (“Centerline”) announced today that through
its affiliate C-III Capital Partners (“C-III”), Island had acquired 100%
of Centerline’s institutional real estate debt fund management and
commercial mortgage loan servicing businesses. This transaction
immediately makes the newly created private company one of the largest
special servicers of CMBS in the United States, as it is presently the
named special servicer for approximately $110 billion of loans in 81
CMBS securitizations.
In connection with the acquisition, Island Capital along with Centerline
also announced that Island had completed a total restructuring of
Centerline’s financial structure and core business operations by
eliminating approximately $1.6 billion of debt, contingent liabilities
and preferred equity, providing a much needed injection of equity and
liquidity and permitting the company to emerge as one of the healthiest
and now most stable companies in its industry. Island Capital affiliates
provided in excess of $100 million of new cash equity in connection with
the acquisition and restructuring, and C-III will also own approximately
40% of Centerline, which will remain as a public company.
Subsidiaries of Anubis Advisors, which is a wholly-owned subsidiary of
Island Capital, have been retained as the exclusive external managers
for C-III and Centerline. In such capacity, Anubis will provide
strategic planning, corporate management, restructuring, MA and other
financial services to both companies.
Island Capital’s strategy in acquiring the CMBS fund management and real
estate loan servicing businesses from Centerline is all but identical to
the strategy successfully deployed in connection with the creation and
building of Insignia Financial Group, Inc. Insignia, founded by Mr.
Farkas in 1990, consolidated much of the then distressed real estate
syndication industry, ultimately growing to become one of the largest
owners and operators of real estate in the world, including 350,000
units of multi-family residential housing and in excess of 250 million
square feet of office, retail and industrial space. Insignia’s growth
was a function of the aggregation, restructuring and management of
complex real estate oriented equity derivatives. Mr. Farkas, now
Chairman and CEO of Island Capital, said “The creation of C-III
represents the adaptation and implementation of the Insignia strategic
and operating model to the present environment. Back in 1990 we started
acquiring real estate oriented equity derivatives and building a
property and asset management business to service the assets controlled
by the derivatives. With C-III we are seeking to acquire real estate
oriented debt derivatives and to build special servicing and ancillary
businesses to manage those.”
C-III will operate as special servicer for CMBS through its wholly-owned
subsidiary Centerline Servicing (which will continue to operate under
that name during a transition period), which is currently the named
special servicer for approximately $110 billion of loan in 81 CMBS
securitizations. Other C-III subsidiaries also control real estate debt
investments that have a face value of approximately $3.1 billion. Under
Anubis’s management, C-III’s intention is to integrate a principal
capital deployment and MA strategy within its operations to acquire
incremental CMBS, CMBS fund managers and other servicing operations.
C-III also intends to pursue institutional third-party servicing
relationships and to expand into business lines complementary to those
in which it presently operates.
CHICAGO — HFF (Holliday Fenoglio Fowler, L.P.) announced today they have completed
the sale of two small-balance commercial real estate loan pools totaling
$105.4 million on behalf of a special servicer and a money-center bank.
HFF managing director Bill Mitchell and senior managing director Stuart
Salins in Chicago represented the sellers in the transaction.
The two portfolios were marketed separately and include 95 loans in 25
states. Rather than offering and then selling the loans to investors on
a “bulk” or portfolio basis, which is typical in the industry for such
type of loans, HFF instead was able to tap into its investment sales
database and target local, strategic buyers willing to aggressively bid
on individual assets. In total, more than 600 confidentiality agreements
were executed. The assets offered were sold in 26 different transactions
to 18 different local and regional buyers.
“In all, HFF’s unique approach netted 20 to 25 percent more in sales
proceeds with fewer kick-out than had HFF sold the loans in aggregate to
traditional large-portfolio bidders,” said Mitchell.
The transaction, completed Jan. 29, raises Babson Capital’s total of
high yield assets under management – which includes bank loans and
high-yield bonds in a variety of accounts and funds – to $19.3 billion.
Babson Capital assumed the role of replacement collateral manager of the
CLOs, whose underlying collateral consists primarily of bank loans, from
Jefferies Capital Management, Inc., a subsidiary of Jefferies Group,
Inc. (NYSE:JEF). As part of the transaction, three Jefferies Capital
Management employees directly involved with the five funds join Babson
Capital: Mark Senkpiel as portfolio manager for the funds and a managing
director, Kimberly Atkinson as a director, and Alyssa Tabora as an
associate director.
“We are honored to have Jefferies Capital and other investors across the
CLOs choose to place their confidence in Babson Capital,” said Russell
Morrison, a managing director and head of high-yield investments for
Babson Capital. “We believe this transaction is a win for all parties
involved.”
Jefferies Group, Inc., Babson Capital and Massachusetts Mutual Life
Insurance Company (MassMutual) maintain an active strategic
relationship, including their joint ownership of Jefferies Finance LLC,
an originator of middle market credit solutions.
