FINANCE WEEKLY The Insider’s Weekly Guide to the Commercial Mortgage Industry

In This Issue

5 RXR Recapitalizes Debt on 61 Broadway With $290M Loan 5 Citi Funds $102M Refi of Power Center 7 Sears Closings Pose Threat to CMBS, Operators 7 Harbor Group International Seals $59M HQ Refi With CIBC 9 Taconic, Clarion Land $110M Capital One Loan for Massive Bronx Portfolio 9 Lightstone Launches Program to Fund Entrepreneurial Deals 11 Macklowe Properties Refis UES Resi Condo With $53M Loan 11 Bronx Multifamily Acquisition Funded With $61.5M Signature Loan

“We keep expanding and growing. One of the interseting results of the credit crisis is that we get a shot at amazing talent.” —William David Tobin From Q&A on page 14 Tishman Speyer American Switching Seeks Tax Flights on JFK $882M Incentives for $707M LIC in Bond Debt Project

An affiliate ofTishmam Speyer is look- American Airlines is looking to refinance IDA, and replace them with new ones issued ing for tax breaks in connection with the con- its longstanding special facility revenue bonds by a state-run counterpart. The board of gov- struction of a $706.7 million two-tower Class A tied to the lease and construction of the eight- ernors for the Port Authority of New York & commercial project in Queens, according to the year-old Terminal 8 at John F. Kennedy , which controls the land at JFK, company’s benefits application with theNew International Airport. But before voted on April 28 to give its consent York City Industrial Development Agency. debt replacement can fully take flight, to refinance as well as to tweak condi- Tishman Speyer is seeking $65 million in the Fort Worth, Texas-based airline The tions of the mortgage on the terminal’s city tax exemptions and deferrals, NYCIDA must clear a runway full of bureau- ground lease. documents indicate. Of the $65 million, $8.3 cratic hurdles. LEAD American has $882 million in million are NYCIDA benefits, a NYCIDA As the financing faces maturity bonds (still due to shareholders) that spokesman explained, and $56.6 million this summer, government documents show funded its long-standing ground lease at the are Industrial and Commercial Abatement that American is looking to refund 11- and site and demolition of the previously existing Program, or ICAP, benefits provided through 14-year-old bonds issued by the Industrial Development Agency, or American Airlines... continued on page 3 Tishman Speyer... continued on page 3

1 | APRIL 29, 2016 2 | APRIL 29, 2016 28-10 Queens Plaza South.

Tishman Speyer...continued from page 1 The 26-story property will contain 1.1 Meanwhile, as Commercial Observer pre- million square feet of office space, 20,000 viously reported, Tishman Speyer and H&R the New York City Department of Finance. to 40,000 square feet of retail space and a Real Estate Investment Trust are devel- The money would contribute to the acqui- 388-space, 80,000-square-foot parking ga- oping Two Gotham Center, the 1.2-million- sition of the 71,692-square-foot site at 28-10 rage, according to the cost/benefit analysis square-foot, 1,789-unit rental complex across Queens Plaza South and the erection of the by the NYCIDA, a division of New York City the street, on a parcel of land bound by Queens development. Of the $706.7 million, $10.8 mil- Economic Development Corporation. Boulevard, Jackson Avenue, Orchard Street lion is allocated for land acquisition, $388.4 WeWork signed a lease for 285,000 square and the Sunnyside Yards. million is for construction hard costs, $72.7 feet in one of the buildings, The Real Deal NYCIDA will hold a public hearing on the tax million is for soft costs and $23.4 million is for previously reported. incentives on May 5. development fees. Tishman Speyer is also looking to raise LICPost first reported news about Tishman Construction is slated to commence next $145 million in EB-5 financing for the two Speyer seeking tax incentives. year and the project should be open three years structures, dubbed One and Three Gotham A spokesman for the developer declined to later. Center, TRD noted. comment.—Lauren Elkies Schram

American Airlines...continued from page 1 new bonds issued by the New York State expected to vote to approve the documents at Transportation Development Corporation, its May meeting, the agenda indicates. buildings there, as well as construction of a a wing of Empire State Development that The Tax Equity and Fiscal new 1.4-million-square-foot terminal that helps fund major transit projects. Responsibility Act requires that a hearing opened in 2007 and was fully finished a year The Port Authority’s consent was re- be held when certain bonds are refunded and later, according to government documents. quired for the new transaction to go through. the issuer changes—in this case going from the Along with American Airlines and subsidi- American will pay the agency a one-time fee IDA to the NYS Transportation Development ary American Eagle, the 35-gate terminal of $3.2 million in the refinancing process as it Corporation. Gov. Andrew Cuomo is also handles flights from airlines includingAir will update the leasehold mortgage on the air- required to sign off on the issuance once the Berlin, Finnair and Qatar Airways. line's ground lease. The agency will amend its board approves the financing. The airline originally borrowed $1.2 bil- lease with American at Terminal 8, which cur- A spokesman for ESD said a hearing had not lion for the development. That breaks down rently expires in December 2036, so that the yet been scheduled, but one should be calen- as follows: American first took out $500 bil- leasehold mortgage on the land indicates that dared in the near future. lion worth of tax-exempt bonds in 2002 the bonds have been issued by the state and not Going through the city or the state to issue through IDA, a New York City Economic by the city, Port Authority Executive Director bonds is not an uncommon practice for com- Development Corporation subsidiary, to Patrick Foye said in a post-meeting press con- panies doing major infrastructure projects at fund work on the JFK project, which cost a ference. “Right now the leasehold mortgage airports. LaGuardia Gateway Partners, the reported $1.3 billion. Part of that debt was re- runs in the interest of the bond holders who group of developers building a new terminal tired in 2012, Port Authority documents in- bought under the debt that was issued through building at LaGuardia Airport, is seeking a dicate. That was followed up in 2005 with a the [NYCIDA] conduit,” Mr. Foye said. “That similar issuance for its project, which is expect- $700 million issuance through the agency, leasehold mortgage then will run through debt ed to cost more than $4 billion. The consortium according to a press release from EDC at the issued through the [ESD] conduit.” is looking for about $2.5 billion in special fa- time. The second set of bonds was uninsured NYS Transportation Development cility bonds, which will also be issued by NYS and carried a fixed rate, trade publicationThe Corporation board of directors voted earli- Tranportation Development Corporation, to Bond Buyer reported in 2005. er this month to approve documentation and fund its work at the airport, according to cred- The combined debt is now slated to ex- hire lawyers in preparation for the approxi- it rating agencies. pire this August, according to Port Authority mately $900 million bond issuance, according A representative for American did not return documents. American plans to refund it with to an agenda for its April meeting. The board is a request for comment.—Terence Cullen

3 | APRIL 29, 2016 POWERING YOUR PROSPERITY John Gochberg Steve Macy Michael Frazzetta Zach Goldman TGM Associates Avid Outdoorsmen Walker & Dunlop borrower since 2012

Commercial Real Estate Finance Commercialwww.walkerdunlop.com Real Estate Finance California loans will be made pursuant towww.walkerdunlop.com a Finance Lenders Law License from the Department of Business Oversight. California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.

4 | APRIL 29, 2016 RXR Recapitalizes Debt on 61 Broadway With $290M Loan

Scott Rechler sure must have been filling and Morris Streets, to an overseas investor. out a lot of paperwork recently. JLL brokers Scott Latham, Richard Baxter, On April 21, his real estate company RXR Anthony Ledesma, Stephen Shapiro, Jon Realty took a $290 mil- Caplan and Yoron Cohen negotiated the deal. EXCLUSIVE lion mortgage from Bank “We are thrilled to have China Orient join of China and SL Green us as our new partner and are pleased that we Realty Corp. on 61 Broadway in Manhattan’s were able to create meaningful value by up- Financial District, Commercial Observer grading 61 Broadway and executing more than Finance has learned. 100,000 square feet of leases at extremely at- While a spokesman for RXR declined to tractive rents,” Mr. Rechler said in prepared re- comment on the financing, a source with inti- marks provided to COF. “We look forward to mate knowledge of the transaction confirmed executing the next level of value creation as we that Bank of China originated a $240 million recapture space and release it at higher rents mortgage and SL Green provided a $50 mil- to the dynamic 21st-century tenants that 61 lion mezzanine loan to recapitalize the prop- Broadway is now attracting.” 61 Broadway. erty. The new financing replaces $200 million Tenants at the building include Bjarke in debt that HSBC provided on the property at Ingels Group, which occupies the penthouse, the time of the acquisition. law firmGodsky & Gentile and securitization value-add opportunity and locally-based RXR simultaneously sold a 49 percent stake company Samuel A. Ramirez & Co. Think operators. in the 33-story FiDi office tower to an affiliate tank Human Conditional Global recent- Mr. Rechler’s Long Island-based firm pur- of China Orient Asset Management, retain- ly signed a lease at the building for a full floor chased the 787,000-square-foot building in ing 51 percent for itself. of just over 24,400 square feet and data gover- May 2014 for $330 million, property records The sale price of the stake in the building nance firmCollibra signed on for more than indicate. was roughly $215.6 million, and was based on 12,000 square feet. A spokesman for SL Green declined to com- a gross valuation of $440 million. Commercial Roy Chen, the managing director of China ment. A representative for Bank of China de- Observer first broke the news in December Orient, said in prepared comments, that 61 clined to comment. Representatives for JLL 2015 of RXR’s contract to sell a stake in the Broadway’s fundamentals are consistent did not respond to comment. property, which is located between Rector with its U.S. strategy of acquiring assets with —Danielle Balbi

Citi Funds $102M Refi of Ohio Power Center

Real estate development firm Stark after Meridian made a market for this credit office, hotel and multifamily properties in Enterprises received a $102 million mort- by highlighting the quality of the fully leased its portfolio. gage from Citigroup for a multi-tenant strip asset and sponsorship,” Mr. Anderman said A spokesman for Citigroup declined to mall in North Canton, Ohio, in prepared remarks. comment. A spokeswoman for Stark did not EXCLUSIVE Commercial Observer Stark, which is based in Cleveland, has respond to a request for comment. Finance can first report. more than 7 million square feet of retail, —Danielle Balbi The debt from Citigroup will be securitized in the commercial mortgage-backed securi- ties market, and carries a 10-year term with a rate of 4.75 percent, a source with intimate knowledge of the deal told COF. The retail property, The Strip, is at 6338- 6765 Strip Avenue NW and has one mile of frontage along Interstate 77. The stores total 786,000 square feet with tenants in- cluding Wal-Mart, Lowes, Old Navy, Bed Bath & Beyond, Starbucks Coffee and Panera Bread, according to marketing ma- terials from Stark. The shopping center is fully leased. Meridian Capital Group’s Drew Anderman and Ben Nevid negotiated the deal on behalf of the borrower. “CMBS lenders competed for this loan The Strip in North Canton, Ohio.

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6 | APRIL 29, 2016 Sears Closings Pose Threat to CMBS, Retail Operators

Morningstar Credit Ratings has identified break-even and push the loan-to-value-ratio $56.9 million in debt across five commercial nearer to 100 percent. mortgage-backed securities deals that could be “The closings are going to have a meaning- adversely affected bySears Holdings’ closure ful impact on CMBS deals with significant ex- of 78 stores nationwide. In a report released on posure to Sears and Kmart, as an economic Monday, the rating agency identified an addi- impairment to these securities will be felt tional five CMBS loans with elevated risk of should these underlying loans with exposure term or maturity default related to the closings. default,” a CMBS bondholder who declined The retailer announced the decision to close 68 to be named, told Commercial Observer Kmart and 10 Sears stores last week. Finance. Additionally, the source explained, The greatest risk is posed to the $32.2 mil- as Sears and Kmart are considered “anchor lion mortgage on the 354,762-square-foot tenants,” a “dark” or vacant store could trig- Midland Mall in Midland, Mich., according ger co-tenancy provisions in the leases of to the Morningstar report. The note com- surrounding tenants causing damage to the prises 1.7 percent of the Lehman Brothers- finances of the center. sponsored LBUBS 2006-C6 CMBS deal. The source also offered further concerns Sears is the second-largest tenant and oc- regarding CMBS deals with exposure to both cupies 17.7 percent, or 62,700 square feet, of Sears and Macy’s stores; both retailers are the mall. Although the property generated often anchor tenants, and both are in the pro- $3.2 million in cash flow in 2015, and had a cess of shuttering several stores in 2016. Sears debt service coverage ratio of 1.17x, the loss officials did not return requests for comment. of Sears could drive the loan’s DSCR closer to —Cathy Cunningham

Harbor Group International Seals $59M HQ Refi With CIBC

Norfolk, Va.-based Harbor Group International completed a $59 million re- financing of its Dominion Tower head- quarters with lender EXCLUSIVE Canadian Imperial Bank of Commerce on April 21, Commercial Observer Finance has learned. The financing replaces HGI’s previous mortgage from Bank of America, which was set to mature on May 1. The loan is now refinanced out of theBACM 2006-2 com- mercial mortgage-backed security and the change will be reflected in the May remit- tance report, a source with intimate knowl- edge of the deal told COF. Given the size of Dominion Tower on the Elizabeth River. the loan, it is likely that it will be contribut- ed into a new CMBS deal, the source said, al- though no further details could be gleaned borders the entrance to the city’s main high- amenities include conference rooms, a at this time. way, Interstate 264. YMCA, multiple stores and a restaurant, Located at 999 Waterside Drive, in the The property was built in 1987 from steel VINTAGE kitchen. primary financial district for the Hamptons and granite, and has floor-to-ceiling insulat- The tower’s other tenants include Wells Road region of Virginia, Dominion Tower has ed glass panels. The 26-story office building Fargo Advisors and Palladium Partners. 360-degree views of Elizabeth River and the is 436,000 square feet, 403,276 square feet of Officials at HGI did not respond to re- Norfolk skyline. The structure is the tallest which are rentable. The attached eight-level quests for comment. A representative for building in Norfolk and is named after the garage has 1,255 spaces, 372 are dedicated to CIBC declined to comment. state’s nickname, “The Old Dominion.” It the neighboring Sheraton Hotel. Building —Cathy Cunningham

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8 | APRIL 29, 2016 Eastchester Heights. Taconic, Clarion Land $110M Capital One Loan for Massive Bronx Multifamily Property

Capital One lent $110 million against provided to Taconic and Clarion in March The buildings were built in 1935 and include Taconic Investment Partners and Clarion 2007 for the acquisition of the buildings. studios and one-, two- and three-bedroom Partners’ 118-building apartment complex HFF served as the broker on the transaction. units, according to the property’s website. in the Bronx, records filed with the city on The two firms scooped up the multifami- Earlier this month, NYCB refinanced an- April 21 indicate. ly complex, Eastchester Heights, for $133 other large Bronx multifamily portfolio. The Paul Kesicki, a senior vice president at million from Urban American, a New bank provided $148.6 million in financing to the bank’s commercial real estate group, led Jersey-based rental property owner. Greenwich, Conn.-based Morgan Group for the deal, which carries a 30-month term with The residential buildings range from four 21 apartment buildings throughout the bor- the option to extend for 30 months in six- to six stories and span five blocks bound- ough, as COF previously reported. month intervals, a source with close knowl- ed by Eastchester Avenue to the north, Representatives for Taconic, Clarion and edge of the deal told Commercial Observer Boston Road to the east, Wilson Avenue the HFF did not respond to a request for com- Finance. It is being used to replace $86.5 mil- south and Hicks Street to the west in the ment. A spokesman for Capital One declined lion, which New York Community Bank Williamsbridge neighborhood of the Bronx. to comment.—Danielle Balbi

Lightstone Launches Program to Fund Entrepreneurial Deals

New York City-based development firm vet any suggestions that come in to deter- fund fits in with the types of deals Lightstone has started an “incubator mine feasibility and market need. Lightstone tends to do. He pointed to its fund,” which it will use to finance real es- Lightstone has not set a limit on how work with to tate-focused investments many deals it will invest in, and if an idea bring Moxy Hotels, a trendy micro-hotel EXCLUSIVE pitched by entrepreneurs, comes in that the firm likes, it will move for- chain that started in Milan, Italy, into the Commercial Observer ward using capital from itself or investment U.S. Now, there are Marriott Moxy hotels in Finance has learned. partners, Mr. Lichtenstein said. “If there are New Orleans and Tempe, Ariz., and seven “Well you see, internally, a lot of what we good deals, between us and our partners currently under construction across the do is entrepreneurial,” David Lichtenstein, there’s capital available,” he said. globe, including in Nashville, New Berlin the chairman and the chief executive officer The company has already started to place and London. of Lightstone, told COF. “Why not give the advertisements in real estate trade publi- In January, Lightstone landed a $330 mil- opportunity to others who might not have cations so individuals can start submitting lion financing package fromSquare Mile the means to do so?” their investment pitches, and two individu- Capital Management to develop a Moxy Mr. Lichtenstein explained that as a com- als are already in the interview process. “It’s location at 485 Seventh Avenue in Times pany, Lightstone places focus on “coming up the first of its kind,” Mr. Lichtenstein said. Square. And as far as developing off the high with where real estate is going to be as op- “It’s about people who have an idea and op- streets, Lightstone recently completed a posed to where it is today.” Ideal projects for portunity and don’t have the money. We’ll rental building at 365 Bond Street direct- the fund can range from $1 million to $50 write the check.” ly adjacent to the , a super- million, and researchers at Lightstone will He explained that the newly launched fund site in .—Danielle Balbi

9 | APRIL 29, 2016 The Takeaway

“Non-agency commercial mortgage-backed securities issuance for first-quarter 2016 came in at an underwhelming clip, totaling just $16.5 billion,” said Sean Barrie, an analyst at Trepp. “That figure is down 34 percent from first-quarter 2015’s total. For March 2016, the office sector led the way with $2.34 billion of issuance, or 28.7 percent of March’s $8.16 billion issuance total. The office sector’s March total was aided by a $526.4 million pool of properties and a $426 million refinancing for 787 Seventh Avenue in Midtown.”

Source:

CMBS Issuance March 2016

Property Number of Percentage of Amount Type Code Loans Origination Volume OFFICE $2,342,594,067 34 28.70 percent

INDUSTRIAL $1,243,379,875 21 15.23 percent

MIXED USE $1,242,194,990 9 15.22 percent

RETAIL $1,199,675,326 62 14.70 percent

LODGING $978,466,813 38 11.99 percent

MULTIFAMILY $681,180,488 31 8.35 percent

SELF-STORAGE $299,318,596 20 3.67 percent

MANUFACTURED HOUSING $124,389,605 12 1.52 percent

CO-OP HOUSING $39,128,800 14 0.48 percent

OTHER $11,667,648 2 0.14 percent

TOTALS $8,161,996,209 100 percent

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10 | APRIL 29, 2016 Macklowe Properties Refis UES Resi Condo With $53M Loan

Harry Macklowe’s Macklowe Properties secured a $52.8 million mortgage from First Republic Bank to refinance the recently developed residential condominium at 737 Park Avenue, according to mortgage docu- ments made public on April 21. Mr. Macklowe’s firm originally used a $164.5 million construction loan from Dublin-based Talos Partners in August 2011 to convert the rental units in the 20-story residential building into condos, city records indicate. Almost three years later, in March 2014, Macklowe Properties had paid the debt down to $62.3 million and split it into two notes, the first being $8.5 million and the sec- ond totaling $53.8 million, which the new loan from First Republic is replacing. New York City-based Macklowe Properties and New York City-based partner CIM Group first acquired the property between East 71st and East 72nd Streets in August 2011 for $360 million, as The Real Deal re- 737 Park Avenue. ported at the time. The partnership redevel- oped the building, which was constructed in currently listed for $3.6 million, while a sev- Representatives for Macklowe Properties 1940, and launched sales for the newly con- en-bedroom, 6,111-square-foot unit is priced and First Republic did not respond to requests verted condos in April 2013. at $25 million, according to the building’s for comment. A one-bedroom, 1,316-square-foot condo is website. —Danielle Balbi

Bronx Multifamily Acquisition Funded With $61.5M Signature Loan

Signature Bank has provided a $61.5 mil- 3.375 percent for five years and a rate adjust- Equity Group, a subsidiary of Spencer lion loan to FBE Limited for the acquisi- ment for an additional five years, the source Equity Group, was the seller of the apart- tion of 1600 Sedgwick Avenue, a 25-story told Commercial Observer Finance. ment complex. Signature Bank also pro- multifamily building in the Bronx, accord- The property, also referred to as vided Riverview Equity Group with a $54 ing to a source with intimate knowledge of Riverview House, is located in the Morris million mortgage on Aug. 19, 2015, accord- the transaction. Heights area of the Bronx. It is comprised ing to public records. The fee and leasehold mortgagors, listed in of 383 apartments, 316 of which are rent-as- Representatives for FBE Limited and public records, are Riverview Development sisted under a Housing Assistance Program Signature Bank declined to comment. Officials Company and HP Riverview Housing contract. The remaining 67 apartments are at Riverview Equity Group and Spencer Development Fund Company, respective- rent-stabilized. Equity Group could not be reached for com- ly. The $61.5 million loan has a fixed rate of According to public records, Riverview ment.—Cathy Cunningham

11 | APRIL 29, 2016 Workforce

Fortress Exec Joins “In order to remain a top real estate in- With the appointment of Mr. Deitch, Jason Lightstone vestor and developer, Lightstone must stay was promoted to executive chairman from creative and innovative in our pursuit of CEO, the firm announced in a press release Alan Liu, a managing director at new investment opportunities,” Mitchell on Monday. Fortress Investment Group, has been Hochberg, the president of Lightstone, Mr. Deitch served as a managing director appointed as a senior vice president and said in the release. “Alan has proven to be at Oaktree Capital and oversaw the compa- the head of alternative investments at among the best in the business not only at ny’s operating infrastructure, investment Lightstone, the company announced in a identifying strategic deals, but at manag- strategies, acquisition of other firms and press release. ing them through to completion. By pair- leading of its initial public offering in 2012. Mr. Liu joined Fortress by way of its 2015 ing Alan with Lightstone’s resources, we “We are excited to have someone of acquisition of Mount Kellett Capital are excited to see what new opportunities Paul’s caliber and experience join Patch Management, where he served as the co- emerge.” of Land as we push past $100 million in head of North America real estate. He was lending activity,” Jason said in prepared responsible for investing in property and Online Crowdfunding remarks. “Paul brings executive experi- identifying emerging industry trends. ence from multi-billion-dollar companies In his new role, Mr. Liu will oversee the Firm Takes on New CEO in both banking and investment manage- development and execution of alternative ment running at scale and has deep expe- investments for Lightstone, which com- Former Oaktree Capital Management rience across a broad range of functions pany Chairman David Lichtenstein told executive Paul Deitch has joined online including technology, operations, risk Commercial Observer Finance will involve real estate marketplace Patch of Land as management, product development, mar- looking for business opportunities beyond chief executive officer. keting, finance and compliance—all of the core Manhattan properties and off the high Jason Fritton and Brian Fritton ingredients we will need as we successful- street. founded Patch of Land in October 2013. ly grow our firm.”

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Q+A FINANCE WEEKLY

1 Whitehall Street, New York, NY 10004 David Tobin 212.755.2400 Principal of Mission Capital Cathy Cunningham Commercial Observer Finance: How Finance Editor did you get into real estate? Danielle Balbi Mr. Tobin: I majored in medieval and Staff Reporter renaissance English literature, which has nothing to do with real estate. Coming out Terence Cullen of school I spent a winter in Colorado with Lauren Elkies Schram a buddy working in Aspen and quickly real- Contributing Writers ized I didn’t want to be a ski bum—as much Cole Hill as I love skiing, it’s my passion—and I want- Copy Editor ed to actually make money. I had had a lit- tle carpentry and house-painting business in college and I had studied architecture as Barbara Ginsburg Shapiro a minor that I didn’t finish, so I was very Associate Publisher much interested in real estate. [A friend of a friend] worked at a bank called Dime Lisa Medchill Savings Bank [of Williamsburgh]. He alert- Advertising and Production Manager ed me to an interview opportunity and I went and I really didn’t know anything David Tobin. OBSERVER MEDIA GROUP about real estate—I had taken a real estate salesperson’s class. We spent five minutes Jared Kushner talking about real estate, but the woman in- We were ahead of that because we have con- Publisher tracts with the government. The Federal terviewing me was a literature buff and so Joseph Meyer we spent the rest of the interview talking Deposit Insurance Corporation was sort of a Chief Executive Officer about Mario Vargas Llosa and Charles leader in pushing all that stuff back in 2007 Bukowski and all sorts of weird literature and 2008. Some of our bigger clients were into Matthew Talomie stuff. I had three or four other rounds of in- it back then and now it’s everybody. To work Chief Revenue Officer terviews, but English literature helped me for a bank, whether you’re selling real estate Ken Kurson get my first job. assets or loan portfolios or doing valuation or Editorial Director consulting, you have to have a very deep audit, How has Mission Capital progressed dive and IT security process. At first I hated Robyn Reiss since it was founded in 2002? it because it was just oppressive to have to go Executive Director We keep expanding and growing. The through that stuff and change your systems and Associate Publisher team has gotten bigger and bigger. One of and add security, but it’s become a huge issue Thomas D’Agostino the interesting results of the [last] credit with banking with the explosion of the inter- Controller crisis and the sort of declining relevance net and data breaches and data thefts. It keeps of investment banks and big banking prin- out everybody that can’t comply with those Laurence Rabinowitz cipal investments is that we get a shot at things. It actually has been a great way to bat- General Counsel amazing talent—kids that [may have ended tle against larger firms and win out over small For editorial comments or to submit up] at an investment bank and stuck in a firms that haven’t made those investments. a tip, please email Danielle Balbi at black hole of 18-hour days, with no ability We were growing from 2002 to 2006, we [email protected]. to move up because [those firms] are down- were setting up a great team as we started, and For advertising, contact sizing. We get better and better talent ei- then when the credit crisis hit we were per- Barbara Ginsburg Shapiro ther coming out of college or coming out fectly positioned. We started getting contracts at [email protected] of banks who are just disillusioned with with the FDIC; we had a business of valuing or call 212-407-9383. that lifestyle and that career prospect. We assets and had a great business of selling as- have an office in Newport Beach, Calif., and sets. All during the downturn, we were in the For general questions and concerns, contact Danielle Balbi at we’ve had kids in New York that say New perfect business and then in 2009 we added dbalbi@ York’s nice, can’t afford it, it’s too oppres- a debt and equity team from Ackman-Ziff— commercialobserver.com sive. We’ve had people move out there. Jordan Ray and Jason Cohen—and that team is or call 212-407-9385. now 25 people strong around the country. They What challenges have met you along did $1.75 billion or $1.8 billion of loans—75 dif- To receive a trial subscription to Commercial Observer the way? ferent transactions—some really cool stuff like Finance Weekly, One of the biggest issues across all of our the Soho House in and the Freehand contact Shannon Rooney businesses is compliance and IT security. Hotel in Miami. at [email protected], or call 212-407-9367

14 | APRIL 29, 2016