Milestone Recognizes Firm’s Success Since 1991 in Placing More Than $30 Billion of Commercial Mortgages Encompassing 3,500 Unique Loans Across the Spectrum of Commercial Property Classes
Newmark Announces Placement of New $61 Million Commercial Mortgage for Monterey Plaza Hotel & Spa to Coincide with Celebration; Ten Year, Fixed Rate Loan Stabilizes Property and Funds Long-Term Improvement Program
San Francisco, California – Newmark, the largest independent commercial mortgage banking firm in the western United States, marked its 25th anniversary of operations with a companywide celebration and retreat hosted at the iconic Monterey Plaza Hotel & Spa, including a unique dinner hosted at the Monterey Bay Aquarium where the firm acknowledged the many reasons for the gathering.
Newmark’s principals and associates had plenty to celebrate, starting with having just closed on long-term financing for the Four Diamond, AAA-rated Monterey Plaza (details below) totaling $61 million. Newmark principals were proud to acknowledge this recent success, while recognizing that since its founding on Nov. 1, 1991, the firm has placed more than $30 billion of commercial mortgages across 3,500 unique transactions covering the spectrum of commercial real estate asset classes including office, industrial, retail, multifamily, mixed use, hospitality, self storage and mobile home parks.
“It’s honestly stunning to realize Newmark has placed and serviced more than $30 billion of commercial mortgages since its founding in 1991,” said Michael Heagerty, principal and CFO for Newmark, who joined the company in 1993 shortly after its launch. “It is a testament to the vision of our founders that we have grown as a dedicated partner for a roster of institutional lenders that trust us as their correspondent and servicing partner of choice in the western U.S.”
Company principals also announced during the festivities that it is on track to close more than $2 billion in commercial mortgages in 2016, the fifth year in a row Newmark has exceeded this volume. Newmark principals were quick to applaud this milestone as validation for the strength of its service ethic, production platform, human capital and the overall health of the commercial real estate markets. Newmark also currently services a portfolio of $9 billion in commercial mortgages on behalf of its roster of institutional lenders, representing more than 1,100 unique loans.
“The fact we are exceeding $2 billion in transaction volume in 2016, a benchmark we have exceeded for the past five years, is a testament to the hard work, expertise and client dedication exhibited by our current team of producers and associates,” continued Heagerty. “Newmark has achieved what our founders set out to create. A ‘Newmark’ in the commercial real estate finance markets built on trust and superior performance that would stand the test of time. We look forward to the next 25 years.”
During the celebration, Newmark principals recognized the vision of the company’s founders, Mitchell Zeemont and William Monheit, and their role in establishing the foundation for a company that would evolve to become a platform reflecting the expertise of its growing team of partners and associates. Their original vision has developed into a brand identity, institutional culture and operating platform focused by its producers on superior client service and business ethics paired to diligent execution and expert market knowledge. This unique culture became the driving theme of Newmark principal George Mitsanas’ comments to the event attendees as he reflected on Newmark being a privately held firm where principals and its growing roster of producers and associates have worked together for decades to build a platform that is a direct reflection of their individual vision and dedication.
“Unlike so many companies in our industry where people jump around every couple of years to companies owned by some big parent company or outside investors who really don’t know much about our business, we at Newmark have grown up together as direct producers in the business,” said Mitsanas. “We can take pride in how we have been making our way successfully through the cycles during the past decades, assisting clients with identifying the best financial structure for their investment success no matter the market realities they face. This is a direct reflection of the talent we develop and retain, and we have grown out of each recession by successfully competing against the firms that come and go during each cycle. Each year we compete on a national level and win top production awards from our institutional lenders. Newmark is a great firm and we should all be proud of what we have built together as we look to the next 25 years to come.”
The Newmark brand today now represents one of the most trusted independent commercial mortgage platforms operating in the contemporary U.S. markets, serving the needs of 20 institutional lenders as their correspondent and servicing agent. The Newmark culture, in large part, has been developed by the many production teams that have driven the company’s success and created a unique platform championing individual workstyle supported by peer collaboration and robust operational resources. This platform has now grown from its original partners operating in San Francisco and Sacramento offices to include 65 principals, associates and employees operating from eight production offices located in four states that serve a diverse client base throughout the western U.S. markets.
Transaction Details: The Monterey Plaza Hotel & Spa
Newmark’s Robert Slatt and Jeff Wilcox, Principals, and Charlie Kokernak, Associate, arranged $61,000,000 in fixed-rate financing for The Monterey Plaza Hotel & Spa, a 290-room full service hotel. The premier establishment is located on Monterey’s Cannery Row on seven contiguous ground leased parcels. The operator worked closely with Newmark to arrange the new first deed of trust, which was used to refinance existing debt, cover closing costs, and fund scheduled capital improvements. The non-recourse financing solution was arranged from one of Newmark’s New York-based correspondent life insurance companies, and will be serviced throughout the remainder of its term by Newmark.
Newmark is a full service independent 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 60 employees in regional offices throughout the western United States. The company services approximately $9 billion representing over 1,100 loans. Newmark is rated as a Primary Servicer by Standard and 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