Market News 1/ 14/ 2015

Market Knowledge Up to the Minute

Armed with a new technology, NorthMarq Capital can provide clients with an in-depth snapshot of where the market is today using our proprietary software called Traqer. Traqer enables our producers to reference up-to-the-minute quotes from hundreds of lenders, for all types of real estate. The result: NorthMarq consistently demonstrates the superiority of our quotes with real-time evidence. Here is how it works.

When any one of our 250 producers or analysts receives a quote on a deal, they input this information into the Traqer system. Immediately, these quotes become available to any producer/analyst within our internal database and can be sorted by variables such as Deal Type, Property Type, Lender Type and Individual Lenders by name. Quotes can be queried over the last 30, 60, 90 or 180 days and separated by “winning” quotes as well.

To streamline this information and make it available instantaneously for our producers, the Traqer system automatically generates an email every time a deal is put under application. These emails find their way to our Production staff (every producer and analyst), allowing them to stay up-to-date on new loan activity throughout our 34 offices across the nation. The Traqer email also includes a link that takes the recipient directly to all quotes entered into the system for that deal. This displays to the Production staff not only where the competition was, but also the winning quote. In the “Winning Quote” section, originating producers post commentary explaining why the quote was chosen by the client.

Recent Examples:

  • First is a standard class “B” suburban office building in Tampa, Florida. Four quotes from life companies and CMBS shops showed CMBS quoting anywhere from an additional 10% to 20% in proceeds, at interest rates almost 60 basis points lower. However, the CMBS deals included some structure in payment (springing cash management) and Defeasance rather than declining prepayment penalties. This was a clear case of more dollars at a lower rate in return for less flexibility.
  • An even more significant example involves a $140 million multifamily deal. It was being restructured from a tax-exempt bond structure to a credit company loan that enabled the borrower to escape a requirement for affordable units, raise rents, do some renovation and add value over a three-year term. Following the renovations, the borrower will be able to recapitalize again and pull some additional equity out of the property. In this example, there was only one quote, but the complex loan structure of the deal was displayed for all producers to acknowledge and to perhaps share with their own client or local market.

The message is clear—utilizing Traqer’s potential, NorthMarq allows producers to present clients a range of quotes as well as a genuine knowledge of where the market is today. When combined with our personal relationships with our lenders and long history of success, the Traqer system reinforces NorthMarq’s compelling platform strength.

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