8044 Montgomery Road
Cincinnati OH 45236
About Our Office
Our Cincinnati office offers a complete range of financing options for all types of commercial real estate. We serve the entire tristate area and can arrange commercial real estate loans for any property type through our unmatched network of lending partners. Call our local office to learn more.
Rob Gemerchak featured in GlobeSt: Prologis says ‘Frenzied Pace’ in logistics to normalize in 2023
CINCINNATI, OHIO (November 8, 2022) – The “frenzied” tempo of logistics leasing momentum of recent years is forecast to “normalize,” according to Prologis’ quarterly Industrial Business Indicator (IBI) and True Months Supply (TMS) research report issued last week.
Prologis said the pace of decision-making has already slowed “and is not expected to reaccelerate due to greater economic uncertainty.”
The firm added that users will have more options as the construction pipeline empties.
Compared with 2022, Prologis “expects more deliveries and slightly lower net absorption, roughly in line with the annual demand run rate at the current level of IBI activity.”
Market rent growth is expected to outpace inflation, TMS is expected to rise and the vacancy rate is expected to expand.
“Taken together, competition may ease in some places, but planning will be pivotal in key locations where options should continue to be limited.
Stuck in Pipeline, Supply Getting Delivered Prologis’ research showed that competition for limited available space continued in the US and the vacancy rate was at 3.1% in Q3, up 10 bps from the prior quarter with rents increasing 6.2%.
“Supply that was stuck in the pipeline is finally being delivered, with 105 MSF of new supply in Q3, up 25 MSF from the prior quarter,” the report said.
Max Bosso, VP/Real Estate Development, Ryan Companies, tells GlobeSt.com that the numbers and overall trends vary from region to region, but uncertainty is a common denominator in many markets right now.
“In Florida, it’s causing end users to take a bit longer in signing leases or making go/no-go decisions, but leases are still being executed,” Bosso said.
“This pattern is pushing out leasing and occupancy timelines for existing spec facilities and also has a trickle effect since interest rates and exit caps are the other two major issues for developers that are opting to slow down on starting new projects.
“Those projects are still happening, just at a slower pace due to a more deliberate strategy with location, purchase price and timing allowed by the PSA.
“Absorptions are still outpacing new starts, which is the light at the end of the tunnel. If this trend can continue for the next 12-18 months, or until the Feds stop raising interest rates, then we will be home free and avoid a major recession.
Companies Trying to Shorten Their Supply Chain Rob Gemerchak, investment sales broker and industrial specialist at Northmarq following the acquisition of Stan Johnson Company, tells GlobeSt.com that as the vulnerabilities of the global supply chain persist, companies continue to consider strategies to shorten their supply chain, which in turn drives demand for additional production and distribution facilities within the US.
“While many headlines have referenced Amazon’s slow-down in the pace of their distribution network expansion, the overall market demand for distribution space has remained at record levels through 2022, with corresponding increases in rent growth,” Gemerchak said.
“This rent growth is expected to continue in 2023 as the demand for distribution space, coupled with higher debt and construction costs, will maintain the pressure on base rental rates. From an investment perspective, there remains liquidity and motivated capital on the buy-side as net lease industrial assets remain in high demand and continue to grow as a favored asset among investors.”
Moody’s Uncommon and Astonishing Numbers Ermengarde Jabir PhD, associate director – senior economist, Moody’s Analytics, tells GlobeSt.com that industrial remains at the top of the CRE sectors.
“Developers have responded positively to robust demand, but new construction has been unable to keep pace with demand because of increasing land and materials costs, hence declining vacancy rates,” she said.
Completions in 2020 reached a record high although completions are expected to be lower in 2022 as construction activity has slowed, she said.
“This is due in large part to inflation that has caused a surge in the cost of raw materials as well as the higher cost of borrowing resulting from interest hikes intended to curb inflation,” Jabir said.
Quarterly completions have declined each quarter since the third quarter of 2021 and the pullback in new square footage coming online is ongoing, with just under 20 million square feet of new supply added to the warehouse/distribution pool in the third quarter, she added.
Despite steadily declining business confidence over the past year and looming fears of an impending recession, Jabir said that the tightening of new supply supported a healthy decline in the vacancy rate in the third quarter of 110 basis points.
“This quarter’s new record-low vacancy rate of 3.9% is so uncommon for warehouse/distribution that, although records have been set each quarter since 2021 Q3, the next lowest recorded vacancy rate prior to the past five quarters of successive record low vacancy was 9% in the third quarter of 2017.
Effective rents continued to propel upward, increasing by an astonishing 5.6% in the quarter.
Supply Chain to Be ‘Caught Up’ By End of Q1 2023 Adam Roth, executive vice president of industrial services at NAI Hiffman and director of NAI Global Logistics, tells GlobeSt.com that the supply chain is projected to “catch up” at the end of first-quarter 2023.
“However, geopolitical concerns and transportation uncertainty have impacted how corporations assess risk,” he said.
“In the short term, just in time has become just in case, which will subside over time as the sting from the COVID supply chain bullwhip dissipates. Nonetheless, the need to reduce length of haul and shorten the supply chain where possible will be the long-term takeaways from the recent snarl in logistics.
Avison Young: NJ Vacancy to Remain at Historic Lows Looking specifically to New Jersey, Avison Young’s Q3 report showed that inventory levels have steadily risen throughout the year, with a busy development pipeline set to deliver late 2022 and early 2023. Meanwhile, vacancy has risen less than half a percentage since last quarter and is expected to stay at historical lows through year end.
Phoenix Picking Up Those Squeezed from SoCal CommercialEdge reports that Phoenix currently has the largest supply pipeline on a stock basis and the second largest in terms of square footage, as it continues to attract an increasing number of industrial players squeezed out of Southern California.
Phoenix had nearly 45 million square feet of new industrial space under construction as of late September, the equivalent of 15.1% of its existing stock. Moreover, the market’s planned projects could more than double that pipeline for a full increase of 31.7%.
Midwest Q2 Multifamily Market Insights: Vacancies drop and rents rise
Multifamily property performance improved in the Midwest in the second quarter with vacancies tightening and rents on the rise.
The average vacancy in the region dipped 30 basis points to 4.5 percent in the past three months. Year over year, vacancy has dropped 90 basis points.
Most markets across the region have posted annual rent increases of more than 10 percent. The pace of growth moderated across several markets during the second quarter.
Investment trends were mixed across the region in the second quarter. Prices are generally higher in 2022 than they were in 2021, and most markets have cap rates around 5 percent. Cap rates will likely trend higher in the second half.
Midwest Region Q1 Multifamily Market Insights: Rapid rent growth to start 2022, construction heating up
Deliveries of apartment properties in the Midwest region got off to a bit of a slow start to 2022 but are expected to accelerate across most markets through the end of this year and into 2023. Leading markets for new units include Chicago and Cincinnati.
Vacancy rates ended the first quarter averaging approximately 4.8 percent across the region, with some of the lowest rates in Milwaukee and St. Louis. Average vacancy rates are down 70 basis points from one year ago.
Rents in the Midwest have trended higher in the past several quarters. Rent growth in the first quarter averaged 2.5 percent, although a handful of markets posted gains ranging from 3 percent to nearly 4.5 percent. Year over year, rent growth reached 12.9 percent.
The median price in the tracked Midwest markets during the first quarter was approximately $139,000 per unit, while cap rates averaged 4.5 percent. The median price was pulled higher by transactions in a handful of markets. In many markets, pricing is closer to $100,000 per unit.
Conducting a loan portfolio analysis could reveal “trifecta” of financial incentives to refinance ahead of maturity dates.
CINCINNATI, OHIO (March 30, 2022) – On the heels of the long-anticipated Fed rate hike in mid-March – its first since 2018 – cost of capital is top-of-mind for real estate owners.
Capital markets have changed dramatically over the past two months due to rising rates and wider spreads created by external market forces. The 10-year treasury has climbed over 1.0% since 9/1/2021 and about 75 basis points in 2022 alone. In addition to its quarter point rate increase, the Federal Open Market Committee (FOMC) has signaled that the Fed will likely raise rates up to six more times this year and up to four times in 2023. Although that context is important, rate moves are never a sure thing. Frankly, no one has that crystal ball to say whether rates will move higher, when they could just as easily drop 30 or 40 basis points tomorrow.
One of the certainties of the current volatile environment is that now is an ideal time to review your portfolio and look at loans that might be maturing within the next three to four years, to see whether it makes sense to refinance. That analysis takes into consideration key factors – the ability to lock in a new low rate and pull cash out, while also weighing pre-payment premiums to determine how much an owner might save over the life of a new loan.
For example, Northmarq recently conducted a loan portfolio analysis for a client on eight different properties (self-storage and apartment). The analysis took a comprehensive look at pre-payments, current payments, future payments and cash out ability across different lender and loan product options. In this case, the pre-payment was a fixed 1% for the next three years. The client believes that rates are going up and recently moved forward with the the refinance of the first loan on a self-storage asset. The client was able to lock in the rate in the low 3% range on an IO loan, pull out several million dollars in equity and reduce the loan payment by $3,000 per month. That is a bit of a best-case scenario with a “trifecta” of incentives to refinance now. However, if the owner had not done the analysis, they would not have been aware of the opportunity. If you believe rates could substantially increase in the future, the cost to refinance early could easily be less than a higher-rate loan in the future. It is important to note, that comparatively speaking, we are still in a period of historically low rates. Figure 1 below depicts 10-year treasury rates since 1962. The 10-year treasury historic low occurred on August 4th, 2020, at 0.52% while the 10-year treasury high occurred on September 30th, 1981 at 15.84%. The historical average for the 10-year treasury since 1962 is 5.94% (with a median rate of 5.73%). The 10-year treasury today is above 2.40%
Despite rate volatility and speculation that rates could move higher, borrowers can still find attractive financing rates and lock in low rates for the next 10 or 20 years. Although lenders are shying away from risk, they are willing to lend on all property types, including stepping back into retail, office and, in some cases, hospitality.
Borrowers will benefit from life insurance company loans which offer early rate locks (at term sheet or loan application) which the lender can hold for 3-6 months at no additional premium. Some lenders are willing to hold a rate even longer, for 9-12 months, which delivers the added benefit of reducing any prepayment penalty. Holding that rate for a longer period does come with a slight premium, 2 to 5 basis points per month past three or four months. However, the upside is that it may allow you to reduce your prepayment penalty and provides the added benefit of holding your rate in a rising rate environment.
Another incentive fueling refi opportunities is the strong value appreciation that many property owners have experienced. Property cash flow and values have increased significantly over the last 5-10 years. However, if an owner decides to sell an asset to realize gains, it creates a question of what to do with the sale proceeds. Can you reinvest in today’s competitive marketplace and successfully complete a 1031 exchange, or could you potentially face a tax on the gain? A big advantage of a cash-out on a refi is that those proceeds are tax free, and you also continue to generate cash flow from the property.
Oftentimes, borrowers put long-term, fixed-rate debt on a property and forget about it until that loan is about to expire. That is even more true in what has been a long-running period of historically low interest rates. Now that the rate environment is starting to shift, it is a good time to conduct a financial analysis of loans with maturities through 2025 to determine if there are any opportunities to refinance. The best advice is to work with a service provider, such as Northmarq, that has the expertise and access to up-to-the-minute market data to run a comprehensive analysis with customized solutions.
Noah Juran recognized by Cincinnati Business Courier in 30 New Bosses To Watch
CINCINNATI, OHIO (January 10, 2022) – Noah Juran, senior vice president/managing director of Northmarq’s Cincinnati office joined the ranks of Cincinnati Business Courier’sTop 30 New Bosses To Watch. Juran took over the Cincinnati office on January 1, 2022 after the retirement of Susan Branscome, a 38-year commercial real estate veteran who joined Northmarq in 2014. Since February 2020, the office was co-managed by Juran and Branscome.
Since joining Northmarq, Juran has closed more than 130 loans totaling more than $600 million in loan volume. In 2016 Noah was recognized as the Rookie of the Year for the entire company and honored in 2017, 2018, and 2019 with the Producer’s Council award. He began his career in Commercial Real Estate financing in 2004 and has gained widespread lending experience through working at a life insurance company, a commercial bank and as a mortgage banker. After working as a lender for over nine years, Juran pursued a career in mortgage banking beginning in December 2013.
Dietz arrived shortly after long-time industry trailblazer Susan Branscome announced her retirement at the end of 2021
CINCINNATI, OHIO (September 14, 2021) – Jeff Dietz, a debt/equity professional with experience financing all types of commercial real estate assets, joined NorthMarq as a senior vice president based in NorthMarq’s Cincinnati office. As a commercial lender, Dietz has originated nearly $500 million of CRE loans.
“I am very excited to be part of NorthMarq, where I can bring a more entrepreneurial and advisory approach to my network of commercial real estate clients. Instead of representing one financial institution, I can deliver clients direct access to the nation’s largest network of lenders including, agency, life insurance companies, CMBS lenders, bridge lenders, and local, regional, and national banks for debt placements. When putting together a project’s capital stack, NorthMarq provides access to both public and private equity partners, making it an amazing asset for clients and their financing requirements,” said Dietz.
Prior to joining NorthMarq, Dietz was a vice president with Truist (formerly BB&T) as a senior commercial real estate lender. At Truist, he originated construction and mini-perm loans for clients is Ohio, Indiana, and Kentucky. Prior to Truist, Dietz served as vice president with US Bank as a commercial real estate lender and underwriter. He began his career in CRE in 2005 with Corporex Companies by securing financing for office, industrial, hospitality, and land assets.
“We are extremely excited to have Jeff join our growing team in Cincinnati as he possesses many close relationships with prominent commercial real estate owners and developers in the greater Cincinnati market,” said Juran. “Jeff’s connections, relationships, and deal origination track record fit perfectly with NorthMarq’s platform and he will bring tremendous value to his clients when evaluating their best options for financing.
Dietz is an active member of NAIOP, ULI, and University of Cincinnati’s Roundtable Program. In 2020, Jeff served as President of the Cincinnati / Northern Kentucky NAIOP chapter. He is also a mentor for ULI Cincinnati’s Real Estate Accelerator Lab (REAL) program.
Dietz will help lead the office under the direction of Managing Director Noah Juran. Dietz’s arrival comes on the heels of Susan Branscome’s announcement that she would retire at the end of the year. A trailblazer for more than 28 years in the industry, Branscome has established the Cincinnati office as a continually productive asset for the company. She is one of only two women in the country to start a commercial real estate company (she founded Quest Commercial Capital, fka Triad Capital Advisors in 1998, which was acquired by NorthMarq in 2014).
CRE financing expert and trailblazer Susan Branscome retires at YE 2021
Branscome will exit the company having first established a platform and team for her successors
CINCINNATI, OHIO (August 30, 2021) — After more than 38 years in commercial real estate financing, Managing Director Susan Branscome announced her retirement, effective December 31, 2021. Branscome, who co-leads the Cincinnati office, joined NorthMarq in 2014 when the Quest Commercial Capital office she founded in Cincinnati was sold to NorthMarq. At NorthMarq, she has participated on the Production Committee, the Diversity, Equity, and Inclusion Committee, and with the Women of NorthMarq network.
Under Branscome’s leadership, the Cincinnati office has continually exceeded its previous year’s production. Already the office has reached its mortgage loan origination goal for 2021 and is on schedule to possibly double it for the year. With Branscome at the helm, the office grew from two employees to nine. Recent additions on the production team include Jeffrey Dietz, senior vice president/managing director, Christina Grimme, vice president, and Chase Dawson, vice president. Long-time co-managing director Noah Juran will manage the office with Dietz.
“I feel very good about leaving this office in really good shape,” Branscome said. “This is the time for them to take it to the next level.
Noah Juran shares his insights on Cincinnati market in Heartland Real Estate Business
Juran was featured as an expert in Heartland Real Estate Business’ Market Highlight: Cincinnati. Topics included: COVID-19 impact; market conditions, what’s drawing investors, rising construction costs, increasing competition, robust financing market and single-family housing.
CINCINNATI, OHIO (August 18, 2021) — Cincinnati remains a highly sought after market for multifamily investors as the U.S. emerges from the COVID-19 pandemic. The Cincinnati area’s apartment market fundamentals, including rent growth, rent collections and occupancy levels are holding up well.
Significant amounts of capital — including local, out-of-state and international — are aggressively seeking to be deployed into multifamily assets, which continues to drive up pricing. Multifamily has outperformed many other commercial real estate sectors during COVID, as many investors consider it a safe-haven investment. However, a lack of inventory for sale is slowing transaction activity.
COVID-19 Impact While delinquencies increased in 2020 due to pandemic-related layoffs and furloughs, many apartment owners in Cincinnati recorded strong rent performance, especially those properties that are well-managed and efficiently screen tenants. There was an eviction moratorium in Ohio, but it had a minimal impact. Workforce housing properties with lower-income tenants experienced the most negative effects during the pandemic.
Many operators in Cincinnati and throughout the Midwest recorded collections at or above 90 percent, which is typical. Owners may have had a couple of tenants who requested rent relief or deferred payments, but after the dust settled, most borrowers, owners and operators did not experience significant collections issues.
CINCINNATI, OHIO (June 21, 2021) – Noah Juran CRE, senior vice president/managing director of NorthMarq’s Cincinnati office has been awarded the CRE® (Counselor of Real Estate) designation by The Counselors of Real Estate®, an international group of high-profile real estate professionals who provide expert advisory services to clients on complex real property and land-related matters. The credential was officially awarded in June 2021.
Juran currently serves as senior vice president/managing director of NorthMarq’s Cincinnati office. He joined the company in June 2015 as a vice president responsible for arranging debt and equity financing for all types of commercial real estate assets, including multifamily, hospitality, retail, office and industrial properties. He is well connected with national, regional, and local funding sources including, but not limited to, agency lenders (e.g. Fannie Mae, Freddie Mac), commercial banks, CMBS lenders, life insurance companies, private and public funds and bridge lenders.
Since joining NorthMarq, Juran has closed more than 125 loans totaling more than $550 million in loan volume. In 2016 Noah was recognized as the Rookie of the Year for the entire company and honored in 2017, 2018, and 2019 with the Producer’s Council award. He was promoted to Managing Director in 2020 and co-manages the Cincinnati office with Susan Branscome.
Juran began his career in Commercial Real Estate financing in 2004 and has gained widespread lending experience through working at a life insurance company, a commercial bank and as a mortgage banker. After working as a lender for over nine years, he pursued a career in mortgage banking beginning in December 2013.
About The Award Only 1,000 professionals in all disciplines of real estate hold the CRE credential in the United States and 20 additional countries. Membership is selective and extended by invitation, although commercial real estate practitioners with 10 years of proven experience may apply.
Members of The Counselors of Real Estate, which was established in 1953, are commercial property professionals from leading real estate, financial, law, valuation, and business advisory firms, as well as real property experts in academia and government. For additional information, visit www.cre.org.
NorthMarq’s Cincinnati office adds to its ranks with the addition of Christina Grimme
CINCINNATI, OHIO (April 20, 2021) – NorthMarq’s Cincinnati office added to its debt/equity team by bringing on Christina Grimme as vice president. She will be responsible for the origination of debt/equity financing for all types of commercial real estate assets, including multifamily, hospitality, retail, office and industrial properties. She will leverage her own and NorthMarq’s relationships with national, regional, and local funding sources including, but not limited to, agency lenders (e.g. Fannie Mae, Freddie Mac), commercial banks, CMBS lenders, life insurance companies, private and public funds and bridge lenders. Grimme will work with managing directors, Susan Branscome and Noah Juran.
“We are extremely excited to have Christina join our growing team in Cincinnati as she possesses tremendous deal origination and closing experience. Christina will bring great value to our clients when evaluating their best options for financing. She has an outstanding reputation for getting deals done and we look forward to our clients benefiting from her new access to NorthMarq’s unparalleled lending platforms,” said Branscome.
Prior to joining NorthMarq, Christina was an Associate at Cushman & Wakefield and Vice President at JLL in Denver, Colorado, where she was directly involved with the production of over $1.15 billion in debt and equity financing transactions. Prior to her role as Vice President at JLL, Christina served as a senior financial analyst at JLL on the Corporate Finance team where she was involved in strategic planning and budgeting from the company.
“I am proud to be joining this group of respected professionals and look forward to contributing to the growth of the Cincinnati office. NorthMarq has an outstanding reputation and I am very excited to provide our clients with innovative financing opportunities from an unmatched network of lending partners,” said Grimme.
Grimme graduated Cum Laude with her Bachelor of Science in Finance from Miami University.
NorthMarq Cincinnati’s Noah Juran recognized in GlobeSt’s Fifty Under Forty
CINCINNATI, OHIO (October 21, 2020) – Noah Juran, senior vice president/managing director of NorthMarq’s Cincinnati office joined 49 other top industry professionals as a recipient of the GlobetSt.com Fifty Under Forty recognition. The annual award features a list of rising stars in the CRE industry whose accomplishments differentiate them from their peers. The publication notes that “These men and women have all brought something unique to the table, to say nothing of hard work and a winning attitude, thus meriting their inclusion in this year’s list.”
Juran is already a leader and top producer in NorthMarq and the greater Cincinnati region. He is responsible for arranging debt and equity financing for all types of commercial real estate assets, including multifamily, hospitality, retail, office and industrial properties. In less than seven years as a mortgage banker Juran has developed client and lender relationships all over the country and financed deals in more than 15 states including a variety of product and loan types.
As a natural leader, Juran is a great mentor for future producers within the company and also for the younger associates in his office. He is well connected with national, regional, and local funding sources including, but not limited to, agency lenders (e.g. Fannie Mae, Freddie Mac), commercial banks, CMBS lenders, life insurance companies, private and public funds and bridge lenders.
Juran has been within the Top 5 in the whole company for number of loans closed each year since 2015. He received the Rookie of the Year Award at NorthMarq for 2016 production (highest fees for first year at NorthMarq), received the Producer’s Council award in 2017, 2018, and 2019 (given to highest non Managing Director producers in the company each year), and was promoted to Managing Director in 2020.
He is involved in the local Jewish community with various organizations including the Jewish Federation and the Jewish Community Center. Juran is part of the Mentor/Mentee program at the University of Cincinnati’s Real Estate School, and a regular attendee at local real estate events for the University of Cincinnati Real Estate Roundtable, NAIOP, and ULI. He is also actively involved in youth sports and serves as a coach for his son’s soccer, basketball, and baseball teams.
Words of advice to someone looking to start a career in CRE: Hard work will always pay off. It is very difficult to break in to CRE and make a name for yourself; there is a lot of competition. However, you don’t have to be the smartest person in your college class or even in your office, but if you put the time in to learn the business, and you out-work your competitors, you will succeed. Make that extra phone call before you leave the office and don’t make excuses for lack of hard work. Be honest with yourself and your clients and you will develop strong, long-term relationships.
CINCINNATI, OHIO (July 27, 2020) – NorthMarq’s Cincinnati office welcomed Chase Dawson to its team as vice president. He will assist in the development of debt and equity transactions under the leadership of managing directors Susan Branscome and Noah Juran. Chase will primarily focus on sourcing debt and equity for Multifamily and Industrial transactions with a secondary focus on self-storage, office, retail, and hotels.
“We are thrilled to have Chase join our Cincinnati office. Chase has a unique background that combines both real estate and sales and is a natural fit for our local team in Cincinnati. He is a pleasure to work with and we look forward to watching Chase grow individually and as part of the team. NorthMarq brings Chase a plethora of financing and equity sources to rely upon as he builds his career,” said Juran.
Dawson has been involved in commercial real estate and sales for six years. Prior to joining NorthMarq from ConstructConnect, he led a team of Business Development Representatives for two years while hitting his own sales goals. Before this, he worked as the Lead Transaction Management Coordinator at CBRE. At CBRE, Dawson assisted in all transactions related to Fifth Third Bank in the Southeast region. At the end of 2016, he started his own residential real estate investment company focusing on smaller multi-family value add properties which he still runs today. As a finance major, Dawson joined Plummer, Daffin and Associates in 2016 as an Associate Financial Representative upon graduation for two years. While attending college, he was an intern at Phillips Edison, The Landstone Group, and Miller-Valentine working in property management and leasing.
“I am excited to be part of an office that has such strong producers and analysts for me to learn from, and an organization with such a great reputation and deep capital sources. I am looking forward to hitting the ground running,” said Dawson.
Dawson holds a Bachelor’s degree in Finance with a minor in Real Estate from the University of Cincinnati. He was a student member of the ICSC and Alpha Rho while attending UC, and received scholarships from both organizations.
Congratulations to Susan Branscome on being recognized by GlobeSt. Real Estate Forum Magazine as a 2019 Rainmaker
Susan Branscome, senior vice president and managing director
of our Cincinnati office, was named a 2019 Rainmaker by GlobeSt. Real Estate Forum Magazine in its January/February
edition. Branscome serves as one of only two women in the U.S. to have started
their own mortgage banking firm. She founded Quest Commercial Capital in 1998,
which she grew to $1 billion in loan servicing business and more than $3
billion in debt and equity transactions, before being acquired by NorthMarq in
With more than 40 years of lending and mortgage banking
experience, Branscome has originated more than $3 billion in industry debt for
all lender and property types. Leading NorthMarq’s Cincinnati and Louisville
offices, she finds solutions to complex financial challenges, offering in-depth
knowledge on real estate cycles and submarket strengths. She develops and
nurtures long-term relationships with lenders, owners, developers and clients,
while sourcing the most competitive loan terms in the marketplace.
Most recently, Branscome founded an organization called
Leading She, which offers bi-weekly podcasts and online resources to support
women in leadership positions within male-dominated industries. Recognized
nationally as an industry expert, she continually writes articles for national
publications and serves as a frequent speaker, sharing her perspective on
commercial mortgage banking best practices.
GlobeSt. Real Estate Forum selects its Rainmakers based on their contributions to the industry, their success in loan production, and the innovation and best practices they have introduced to the business. See the full list of this year’s Rainmakers here
Susan Branscome joins other CRE experts in Southeast Real Estate Business story anticipating a busy 2020
The commercial real estate mortgage banking environment in early 2020 is nothing like it was a year ago. The major stock market indices opened the new year by hitting record highs after climbing more than 20 percent in 2019. That’s a dramatic turnaround from 12 months earlier when a fourth-quarter selloff had set back the market more than 15 percent.
The 10-year Treasury yield, a benchmark for long-term financing in commercial real estate, has hovered around 1.8 percent early this year, some 140 bps lower than it was near the end of 2018.
One variable that has remained consistent, however, is the vast amount of commercial real estate liquidity available to borrowers. Mortgage banksers are expected to originate $683 billion in commercial property and multifamily loans in 2020,. according to the Mortgage Bankers Association (MBA) based in Washington, D.C. If that figure is realized, it would represent a 9 percent increase over MBA’s projection of $628 billion in loan volume in 2019, also a record.
MBA’s outlook even represents a departure from its view a year ago, acknowledges Jamie Woodwell, MBA’s vice president for commercial real estate research. Back then the organization anticipated that rising interest rates in 2019 would dent commercial real estate values. But instead, interest rates reversed course.
CINCINNATI, OHIO (January 29, 2020) – The Cincinnati office of NorthMarq announces the promotion of Noah Juran to managing director. In his new role, Juran will co-manage the daily operations of the Cincinnati office with Managing Director Susan Branscome. NorthMarq provides a complete range of debt and equity options through its unmatched number of insurance company relationships, network of CMBS, bank and debt fund contacts and full array of in-house agency debt options (Fannie Mae DUS, Freddie Mac and FHA).
“Noah is an excellent mortgage banker and ranked in the top 10 producers in the 120+ producer company in production during 2019. He is driven, knowledgeable and relationship-based. I look forward to managing and growing the office with Noah,” said Branscome.
Juran joined the Cincinnati office of NorthMarq in June 2015 as a vice president responsible for arranging debt and equity financing for all types of commercial real estate assets, including multifamily, hospitality, retail, office and industrial properties. Since joining NorthMarq, Juran has closed more than 125 loans totaling more than $500 million in loan volume. In 2016 Noah was recognized as the Rookie of the Year for the company and was selected to serve on the Producer’s Council in 2017 and 2018.
Prior to joining NorthMarq, Juran launched a Cincinnati office for Marcus & Millichap Capital Corporation (MMCC), was an assistant vice president with US Bank’s national commercial real estate division and was a senior commercial mortgage analyst with Summit Investment Partners (Union Central Life Insurance Company which is now Ameritas Life).
Juran graduated from The Ohio State University’s Max Fisher College of Business, where he earned a B.S. in Business Administration with specialization in Marketing and Logistics.
Susan Branscome selected for national recognition in Connect Media’s 2019 Women in Real Estate Awards
Connect Media announced that Susan Branscome was selected as one of 10 inspirational women for national recognition in the publication’s third annual Women in Real Estate Awards. Winners were chosen based on their talent, drive and fresh ideas.
Notable highlights in Branscome’s nomination included:
Founded Quest Commercial, which was acquired by NorthMarq in 2014
Has originated more than $3 billion in CRE debt
Launched LeadingShe series of podcasts
More than 400 nominees applied for the recognition from all parts of the country and from all sectors of the commercial real estate industry— from investment and leasing to development, management and finance.
Midwest Real Estate News asks Susan Branscome about the strength of the Cincinnati CRE market and the health of its commercial sectors
Susan Branscome, senior vice president/managing director of the Cincinnati office of NorthMarq, knows the ins and outs of the Cincinnati commercial real estate market. Because of this, Midwest Real Estate News asked her three key questions about the strength of the Cincinnati CRE market and the health of its commercial sectors.
Here is what Susan had to say:
This is a big, broad question, but how busy is the Cincinnati commercial real estate market today? Are you seeing a lot of activity when compared to last year or five years ago? And if the market is busy – or even if it’s just solidly steady – what do you think are some of the reasons for the strong activity?
Susan Branscome: The job growth has been strong in the Cincinnati market plus there is a strong focus on more growth and keeping jobs. With the investment by Amazon near the airport, there has been a tremendous amount of industrial development. Industrial is starting to become the “new retail” with online purchases growing. One of the challenges is that the employment market is so tight, with nearly full employment, that it’s been hard for companies to find good people.
The market is definitely more active than five years ago in terms of growth. As far as sales, there is a disconnect between the returns required and prices most investors are willing to pay and the prices being paid by out of town buyers with different return expectations.
When looking at the main commercial sectors, which ones are performing especially well in the Cincinnati area today? Which ones are struggling?
Branscome: The fundamentals in all CRE sectors are very good. Demand, supply and vacancies are strong in all sectors with development being controlled by judicious development decisions and more conservative financing, with lenders requiring more equity in projects.
The exception is Class-B office downtown, which has a higher vacancy. Some of these buildings are being transitioned to multi-family to meet the growing housing demand downtown. The delivery of many new Class-A apartments may increase the vacancy and concessions as absorption may not keep up with the new supply.
A lot of the cities we cover are seeing a boom in their down-towns, from retailers setting up shop to new apartments rising and companies opening or filling office space in the center of town. Are you seeing this in downtown Cincinnati, too? And if so, what do you think is fueling the downtown activity?
Branscome: The growth of the Over-The-Rhine market has been extraordinary. The amount of investment by the public and private has spurred a tremendous amount of housing and retail in this market north of downtown Cincinnati. The downtown center has grown, too, especially when it comes to multifamily development and the re-development of older office buildings.
Retail has struggled a bit with the closings of Macy’s and Tiffany’s, yet this is a national trend, too, and represents the lifecycle of commercial real estate. The highest and best use can change over time.
Two NorthMarq professionals selected for GlobeSt.com’s Women of Influence recognition
Susan Branscome selected for third time; Sharon Plattner is first-time winner
NorthMarq, a leader in commercial real estate capital markets, announces two winners for GlobeSt.com’s annual Women of Influence recognition. Susan Branscome, managing director-Cincinnati, and Sharon Plattner, managing director-Freddie Mac production, are both long-time leaders in debt and equity transactions and within the commercial real estate industry. They were two of seven winners in the debt and equity category for the awards.
Three-time winner Branscome founded Quest Realty in 1998, as one of two women in the country to start a commercial real estate mortgage banking firm. She and her team joined NorthMarq in 2014 when her firm was acquired; in her career, she has originated more than $3 billion in commercial real estate debt for all property types with all types of lenders. Prior to beginning her career in commercial mortgage banking, Susan was a construction lender with Bank One and permanent loan lender with Carillon Advisors, the investment advisor for Union Central Life Insurance Company and Manhattan National Life, now Ameritas.
First-time winner Sharon Plattner joined NorthMarq in 2018 as managing director of Freddie Mac production, responsible for assisting NorthMarq’s originators in securing Freddie Mac financing for their clients. She has more than 20 years of experience in the mortgage banking industry, with 11 years at Freddie Mac, where she was responsible for leading a team of 17 with production of more than $16 billion. She also has experience as an originator for Berkadia, an underwriter for Morgan Stanley, and a project manager for a Chicago-area developer.
In addition to her professional career, Plattner started RENEW, a professional association focused on women working in commercial real estate finance roles. The association started in 2017, and after one full year of operation, reached more than 250 members at the beginning of 2019. https://renewcre.com
Susan Branscome, senior vice president/managing director of NorthMarq’s Cincinnati office, shared her insights with the Cincinnati Business Courier regarding trends and the current state of the market. Branscome was one of four panelists, representing Cincinnati’s top commercial real estate experts, participating on the Commercial Real Estate Roundtable. Discussion topics included: growth in the market, hot development areas, Opportunity Zones, driverless cars, retail and more.
Susan Branscome featured in Midwest Real Estate News: Midwest Women in CRE
Susan Branscome, managing director of NorthMarq Capital’s Cincinnati regional office, was recently featured in “Midwest Women in CRE,” an annual recognition in Midwest Real Estate News. Susan answered questions about her life beyond the CRE industry, her personal inspirations, as well as her favorite things about working in the CRE field. Susan’s commercial track record was also highlighted, including 36 years of experience in the industry and a $3 billion origination total.
Susan Branscome inducted into REForum’s Women of Influence Hall of Fame
Susan Branscome, senior vice president/managing director of NorthMarq’s Cincinnati office was selected as a Hall of Fame inductee. For a quarter of a century, REForum has published the Women of Influence Feature as a way to highlight women making inroads in the industry.
Learn more about what set Susan apart in her nomination responses below:
In what ways has this nominee left her mark on the industry? Why is she worthy of this recognition? Susan is one of only two women in the United States who have started her own mortgage banking firm. Of the industry’s 5,000 U.S. mortgage banking professionals, less than two percent are women.
She sold her company to NorthMarq Capital in 2014,
and continues to lead the Cincinnati and Louisville offices for the company. While
with Q10, she was a Q10 Capital Board member and three-year Executive Committee
Client Testimony:“Even after twenty years of doing business together, Susan continues to amaze me with her creativity and tenacity to get a deal quoted and closed. Her competitive and fun spirit make her a trusted partner and friend.”
Patrick Minea, regional managing director/executive vice president, NorthMarq: “Susan built her company from the ground-up and joined us in 2014 as one of our strongest new offices. She brings strong leadership to our company and the Cincinnati area, developing new talent for future success in this market. We really enjoy having Susan on our team leading our Cincinnati and Louisville offices.”
She was one of 10 founding members of the
Cincinnati Chapter of Commercial Real Estate Women (CREW). The national
organization of CREW of 9,000 members who are dedicated the advancement and
success of women in commercial real estate and achieving parity in
opportunities, influence and power within the industry. She was past President
(and the first woman) and Board Member of the Cincinnati/Northern Kentucky
NAIOP chapter. Susan was the founder, and former President of The Paragon
Group, a commercial mortgage banking peer group with eleven company members.
In 2007, she co-developed and produced “Beyond the
Glass Ceiling” a workshop exclusively for businesswomen to encourage and
motivate women to excel in the business world.
$31 million for Encore Apartments in Cincinnati,
$12.5 million construction financing for Courtyard
by Marriott in Houston, Texas
$10.7 million refinance of Riverfront Place in
$10 million refinance of Village at the Mall in
What is/was the biggest obstacle you faced in your career and how you overcame it? The biggest obstacle I had when I first entered the CRE industry in the 1980s was the fact that there were very few women in the industry. The good news is that I was a novelty, and stood out among mostly men. The challenge was being accepted and given opportunities my male peers were receiving.
Eventually this came from hard work and proving
myself. After a while my customers
didn’t think of me as a woman calling them and working with them, they knew me
as “Susan.” They knew me as the mortgage
banker who would work hard to get competitive loan terms and get the deal
approved and closed with as few headaches as possible. Having experience and
having developed a reputation for getting deals done has helped overcome any
stigma associated with being female. A lot has changed in 30 years, women have
become a much larger part of the industry so we are more accepted.
There are still roles in CRE which are dominated by
men, yet women are making progress and it’s exciting to witness.
What is the biggest challenge the industry is facing right now? The biggest challenge in the industry is attracting young people with talent to choose CRE as a career. There are plenty of other careers in which these college graduates are pursuing which might seem more attractive, yet the career path and economic success is very strong in CRE when a professional pays his/her dues in the industry.
The job market is tight and the best people can be
hired quickly at competitive salaries. Companies must differentiate themselves
so that they attract top talent with strong salaries and benefit packages as
well as a promised good career path.
There are a lot of changes happening in the CRE
industry given the changes in retail, the amount of multi-family having been
developed and changing trends in the technology of driverless cars. The market
will not look like this in five years and a young professional following these
trends and seeing where the opportunities should pay off with hard work and
building his/her knowledge base.
What is the nominee’s membership/activity in business, career-oriented, charitable or civic-minded organizations? Susan is a natural business leader whose career and professional success is mirrored in her civic and community work. She is consistently invited by industry editors to write articles for local, state and national publications including The Business Courier, Midwest Real Estate News, Apartment Finance Today, Multi-housing News and Heartland Real Estate Business.
Susan is recognized as a local and national
industry leader and expert and frequent speaker. She is also the recipient of
the 2011 YWCA Career Women of Achievement Award and the 2008 Athena Award
through Cincy Magazine, an award given to women who achieved professional
success and have assisted other women succeeds and gives back to their
She was one of 10 founding members of the
Cincinnati Chapter of Commercial Real Estate Women (CREW). The national
organization of CREW of 9,000 members who are dedicated the advancement and
success of women in commercial real estate and achieving parity in
opportunities, influence and power within the industry. She was past President
(and the first woman) and Board Member of the Cincinnati/Northern Kentucky
NAIOP chapter. Susan was the founder, and former President of The Paragon Group,
a commercial mortgage banking peer group with eleven company members.
After her recognition for the 2011 YWCA Career
Women of Achievement award, she co-chaired the YWCA 2012 Career Women of
Achievement luncheon, securing attendance of over 2,200, the largest luncheon
event in Cincinnati, and assisting in raising a record amount of funds, over
Susan Branscome featured in Midwest Real Estate News: Multifamily, investment fueling Cincinnati’s CRE growth
The amount of private and public capital investment in the city of Cincinnati during the last 10 years has been unprecedented.
Cincinnati has experienced a resurgence unlike any time in the city’s recent history given an incredible amount of capital invested during the last 10 years. Cincinnati is one of the top cities in the country for millennial migration and ranked in the top 10 by fDi Magazine as an “American City for the Future.” CNBC’s Disruptor 50 List ranked Cincinnati in the top eight cities in the country for business startups.
With a 3.7 percent unemployment rate, strong supply and demand fundamentals in all real estate sectors, Cincinnati is poised to be one of the top cities in the Midwest for investment and remains competitive for companies to expanding or relocating. However, with long a strong unemployment rate along comes the challenge of companies to hire and fill positions with qualified people.
Today, the Cincinnati story is not unlike that in other cities. Class-B downtown office space is converting to apartments while retail is in part becoming industrial. The pro-business focus, collaborative work and economic commitment to the region has never been stronger. Helping with this effort are government-sponsored entities and non-profits such as 3CDC, The Greater Cincinnati Redevelopment Authority, REDI Cincinnati, Northern Kentucky Tri-Ed and the Greater Cincinnati Chamber of Commerce.
Some of the following major developments have recently been completed or in the planning phases:
Amazon is expanding its Global Prime Air Hub in Northern Kentucky and announced a $1.5 billion investment at the Cincinnati/Northern Kentucky International Airport (CVG) to include 3 million square feet of buildings and office space. The projections include the addition of 15,000 jobs over the course of 30 years. DHL has invested more than $280 million in the last year and employs 3,500 people, contributing to CVG’s ranking as the eighth largest cargo airport in the country.
Currently being developed by a joint venture between North American Properties, Kroger Co., 3CDC, City of Cincinnati, Northpointe and Rookwood Properties is a $91 million project in the CBD at Court and Walnut Streets. The project will include the first true downtown Cincinnati Kroger grocery store, a 550-space parking garage, and 139 luxury residential housing units. Cincinnati Children’s Hospital began development of a $650 million expansion to the Avondale campus, which will add 600 jobs.
The recently opened MLK/I-71 interchange has allowed much better access to 670 underutilized properties near the UC Medical Center and the University of Cincinnati in an area known as Uptown. The expectation is to create an additional 7,000 jobs with the investment by local developers.
Susan Branscome featured in REBusiness Online and Heartland Real Estate Business Magazine
Strong Fundamentals Are in Place for Cincinnati’s Multifamily Market
The strength of the national multifamily market has been driven by a number of factors, especially job and wage growth. Nationally, annual job growth has been 1.5 percent and annual wage growth has been 2.9 percent, according to the U.S. Bureau of Labor Statistics.
Another factor affecting the multifamily market is homeownership. In the United States, homeownership reached 65 percent in 2008, dropped to 60 percent in 2015 and rebounded to 65 percent at the end of 2017, according to the U.S. Census Bureau.
During the last 10 years, the millennial population has primarily rented housing and baby boomers have been downsizing to apartments or condos. These trends have contributed to the multifamily market’s strength. We see the millennial sector housing choices changing with much of the generation getting married and starting families.
Last year represented the third-best year in history for multifamily property sales volume, according to Dave Lockard, senior vice president in the multifamily brokerage division of CBRE.
Another factor affecting multifamily markets is a slowdown in new construction. Higher construction costs and more conservative commercial bank construction financing have led to fewer developments. The cost of materials and labor has increased, making it more difficult to justify development.
Banks have experienced more lending regulation, causing apartment developers to place more equity in projects and leading to lower returns for developers. Also, short-term and long-term interest rates have increased, making the cost of borrowing higher. These increases will lead to higher capitalization rates and lower values, contributing to fewer feasible projects.
Last year, NorthMarq Capital arranged a $5.6 million loan for the refinancing of North Park Townhomes in Cincinnati. The 122-unit property is located at 300 Cardinal Drive.
The peak of new construction in the United States was March 2017 when nearly 50,000 units delivered. In contrast, the monthly average for the fourth quarter of 2017 was 28,700 units.
Long-term permanent financing is plentiful with Freddie Mac and Fannie Mae getting their share of the originations market. Life insurance companies also favor multifamily as a property type upon which to lend. Loan-to-value (LTV) ratios range between 65 to 80 percent, with lower LTV transactions commanding the best interest rates, usually by life insurance companies.
Bridge lenders prefer multifamily as well, but unless a property is a value-add, turnaround-type property, bridge lenders are not the best lender choice. CMBS lenders have difficulty competing with these lenders for long-term loan opportunities in the multifamily space.
Cincinnati, with a population of 2.2 million and an average household income of $80,000, has been considered a strong Midwestern market in which to develop and invest in multifamily properties. Cincinnati is in the top 25 largest metropolitan statistical areas in the country, with nine Fortune 500 companies headquartered in the city including Kroger, Macy’s, Procter & Gamble and Fifth Third Bank.
Cincinnati’s unemployment rate sits at 3.7 percent, in comparison with Ohio’s rate of 4.8 percent and the nation’s rate of 4.1 percent. According to Lockard, apartment vacancies have remained in the 6 percent range with a slight uptick of about 10 basis points during the fourth quarter of 2017.
Average annual rental growth in Cincinnati since 2010 has been 4.3 percent. Rents are approximately $1 per square foot for suburban properties and $1.61 per square foot for the central business district (CBD). The Class B market, which tends to house more workforce residents, has been very strong and there is a lack of available housing in this sector in Cincinnati with remarkable demand.
Capitalization rates for Class A properties are currently in the 5 to 5.75 percent range with Class B cap rates in the 5.5 to 6.25 percent range. Predictions are that cap rates will not change much this year, although we should witness an increase in cap rates at some point with sustained higher interest rates.
There are a number of other factors besides interest rates that are affecting cap rates, including the strength of the market, potential rental growth and returns on alternative investments.
The Cincinnati CBD has enjoyed strong occupancies and rental increases with some high-profile projects coming online, including North American Properties’ Encore Apartments on Sycamore Street and Rookwood Properties’/North American Properties’ to-be-built, 18-story luxury tower anchored by a Kroger.
Flaherty & Collins Properties is developing two new multifamily projects, Fourth & Race in downtown Cincinnati and Riverhaus in northern Kentucky. The demand for rental housing downtown appears to remain strong, leading to the conclusion that these properties will lease up quickly at pro forma rents.
Cincinnati is expected to experience a lower level of multifamily property sales volume this year based upon the fact that there are fewer loan maturities. Although vacancies are expected to increase as much as 1 percent, Cincinnati will remain a healthy market.
The development pipeline has leveled off with fewer projects, which makes sense based upon the earlier cited factors. Rental increases for 2018 are expected to be 2.5 to 3 percent, according to Lockard. All in all, Cincinnati will continue experiencing a strong multifamily market.
Takeaways from the 2018 Commercial Real Estate Finance (CREF) Conference
Susan Branscome featured in REjournals: Has there ever been a better time for CRE in Cincinnati?
Susan Branscome has worked in the commercial real estate industry in Cincinnati for more than three decades. Never has she seen the city as busy at it is today when it comes to new commercial sales, leases and developments.
Branscome, senior vice president and managing director of the Cincinnati office of NorthMarq Capital, said that it isn’t just one commercial sector in the city that’s booming, either. Industrial, multifamily, office and retail are all seeing an increase in sales and leases today.
“It’s probably been one of the best times for Cincinnati in terms of all the markets so close to being in balance as far as demand and supply goes,” Branscome said. “Vacancies are down. Rents are increasing in all the sectors. I’ve been in this market for a long time. This is maybe the best we’ve ever seen Cincinnati in terms of the commercial real estate market.”
Branscome says banks and commercial lenders have played a part in the positive supply-and-demand balance that Cincinnati is now experiencing. She said that banks have become more conservative when it comes to lending money for new commercial developments.
For new apartment buildings, for instance, the highest loan-to-value ratio developers can have and still expect to qualify for commercial financing is in the 70 percent to 75 percent range, Branscome said.
Thanks in part to this conservatism, the supply of new apartments in the Cincinnati area has not outpaced the demand for these units. Unlike other markets in the Midwest and across the country, there are few worries here that the multifamily market is overbuilt.
This same scenario is being played out in the other commercial markets in the Cincinnati market, too, helping to keep that demand-supply balance at a healthy level.
This isn’t to say that apartment buildings here are filling as quickly as they were last year or the year before. Branscome said that the pace of absorption and rent increases has slowed. With all the new apartment projects still coming online, the Cincinnati area might see some softness in rents in the highest end of the multifamily market, she said.
The positive for this market, though, is the diversity of renters. Branscome said that it’s not just Millennials who are renting apartments in the center of Cincinnati, but tenants of all ages.
“We thought it would always be Millennials,” Branscome said. “But we are also seeing Baby Boomers who don’t want to own anymore. We are seeing so much more activity downtown with housing.”
An example of this? The new $52 million, 17-story Encore Urban Living from NorthPointe Group and North American Properties. This building is an example of the kind of high-end apartment projects that are still rising in the Cincinnati market.
The multifamily market, though, isn’t the only sector thriving in Cincinnati. The industrial market here is busy, too. Amazon has helped with its decision to make Cincinnati one of its major hubs. The online retail giant is expected to bring 1,000 new jobs to the Cincinnati market.
Branscome pointed to the coordinated efforts of a host of civic organizations as one reason why Cincinnati’s commercial real estate market is performing so well. She said that the local chamber of commerce, the port authority and other organizations have come together to offer incentives and regulations that make it easier for developers to work in the Cincinnati market.
Cincinnati is also home to several large companies, such as Kroger, Fifth Third Bank and GE. GE, in fact, recently made a major investment in the city, building a new office building about 18 months ago here and bringing 2,000 jobs to the center of Cincinnati.
The opening of the $80 million interchange at Martin Luther King Drive and Interstate-71 has made an impact on the Cincinnati commercial real estate market, too, Branscome said. This public project will spur more growth in the neighborhood known as Pill Hill.
“We are already seeing plans for new hotels and office buildings near that new interchange,” Branscome said.
The Cincinnati commercial real estate market is so strong, it is inspiring out-of-town developers to move into the area, Branscome said. Several developers that normally focus on markets such as Columbus and Indianapolis are now taking on projects in Cincinnati, she said. This is because of the high demand for new commercial buildings here and the ease of developing in this area, Branscome said.
“They are seeing Cincinnati as a vibrant market today,” Branscome said.
Retail’s transitional period: how to keep up with Amazon
Susan Branscome, senior vice president/managing director of NorthMarq Capital’s Cincinnati regional office, authored an article titled “Retail’s transitional period: how to keep up with Amazon,” that was featured in the August 2017 edition of Heartland Real Estate Business. In the article, Branscome discusses factors such as Millennials becoming the country’s largest buying group, lender perceptions around retail asset classes and how the market will evolve going forward. Read the full story here.
Susan Branscome discusses opportunities and challenges in tertiary markets
Susan Branscome joined four other NorthMarq Capital producers to discuss and answer questions regarding tertiary and secondary markets. In her responses she focused on challenges, such as community size, and opportunities, such as agencies and commercial banks representing a route to do more business with CMBS/conduit lenders at higher leverage levels for borrowers. Read Susan’s responses below.
1. What property type/niche are seeing/hearing about in your market? What conditions make this possible?
Within tertiary markets, lenders tend to be most comfortable with apartment and retail properties. Industrial and office are not as popular in terms of property types in tertiary markets. Industrial properties are usually located in established industrial locations and require access to an interstate system, which many smaller towns do not possess. With office properties, growth and success depend upon a strong local economy and job growth, neither of which tertiary markets often have. Apartment and retail properties are supported more by consumers rather than commercial activity, making them preferable property types to lenders in tertiary markets. These retail and apartment properties must have exhibited strong historical income and must be well located. Tertiary markets, which have several employers and not one dominant employer, are preferred by lenders.
2. What type of borrowers/lenders are in your market? For example; is it primarily agency or are bank and life companies also part of the mix? Why?
In tertiary markets we typically see local borrowers versus national borrowers electing to develop and own properties in smaller markets. These borrowers know their markets and are comfortable with the risk of these investments. Some life companies will choose not to lend in tertiary markets given the default risk is higher with the smaller population levels, yet many life companies see tertiary markets as a place to obtain lower leverage loans and higher interest rates. So long as banks have a presence in these smaller markets or the market is in their lending “footprint”, they will likely consider lending in these communities. Both agencies, Freddie Mac and Fannie, will consider lending in tertiary markets although Fannie seems to have a bigger appetite for smaller communities.
3. What are the unique challenges facing your market?
Tertiary markets face the challenge of being so small it might be difficult to attract a lender which will consider a 75 percent loan-to-value loan. Borrowers which have loan balances at this level might find it difficult to pay off the loan without additional capital placed towards the transaction. Tertiary markets have the unique challenge of based upon its community size, there is risk of employers and companies leaving for larger cities causing population decrease.
4. What are the unique opportunities present in your market?
Lenders are not as enthused about lending in a smaller market versus a larger market. CMBS lenders are more likely to have fewer issues with the community size than life companies. Agencies and commercial banks therefore present an opportunity to do more business with CMBS/conduit lenders at higher leverage levels for borrowers.
NorthMarq Capital’s Daniel Weber among 165 new designees to receive their CCIM pin
Daniel Weber, investment analyst at NorthMarq Capital’s Cincinnati regional office, received his CCIM pin during the Spring 2017 CCIM pinning ceremony on April 4. The swearing in of the 165 new designees (five from Ohio) was performed by 2017 Institute President Robin Webb. The ceremony was part of CCIM Institute’s Midyear Governance Meetings at the Fairmont in Chicago.
The CCIM designation is considered the most rigorous commercial real estate professional designation to obtain due to extensive coursework, a peer-reviewed commercial portfolio and a final comprehensive exam lasting six hours. While five years is the average time to complete the CCIM designation requirements, Weber was able to meet requirements in two years, thanks to holding an MBA with a certificate in real estate that made him eligible for a FastTrack program.
“Obtaining the CCIM designation is an important way for me to enhance my credibility among my peers and among clients in my industry,” said Weber. “The CCIM designation represents proven expertise in financial, market and investment analysis/negotiation. I am confident that the knowledge gained while pursuing the designation will allow me to provide comprehensive and valuable advice to clients, which is critical to allowing them to meet their investment objectives.”
Weber has a proven understanding of the entire life cycle of an investment, from refinancing to capital improvements to disposition. As a result of the CCIM Designation, he is able to apply key investor decision-making analyses to optimize investment returns, effectively forecast investment performance by quantifying real estate risk, leverage CCIM analytical tools to improve decision making, and access an exclusive and powerful network of over 13,000 other CCIM members.
Susan Branscome featured in National Real Estate Investor
Susan Branscome was featured in an article by National Real Estate Investor titled “Tertiary Markets See Ebb and Flow of Debt Capital.” The article investigates the financing climate of tertiary markets and looks at the various options available to borrowers. Read the article here.
Susan Branscome recognized by Real Estate Forum as 2016 Woman of Influence
Susan Branscome, senior vice president/managing director of NorthMarq Capital’s Cincinnati office, was featured in the Women of Influence section of Real Estate Forum’s July/August edition. Groundbreaking, glass-ceiling shattering and forces of nature is how the publication described recipients, who were specifically chosen based on their contribution to company, industry and community.
As a commercial mortgage banking pioneer, leader, entrepreneur, role model and industry trailblazer, Branscome deservedly earned a place among the industry’s top women. Her career is marked by firsts. She is counted as one of only two women in the United States to launch a mortgage banking firm; was the first woman officer within the commercial real estate division of Bank One in Dayton, Ohio; was the first woman officer in Carillon Advisors’ company history; and was the first woman—and is one of the only two women—to sit on the board and executive committee of Q10 Capital LLC. She also spends a considerable amount of time giving back to her community through volunteering for the YWCA Boys Hope Girls Hope.
Susan Branscome featured in Real Estate Journal
Susan Branscome authored a guest post for the Real Estate Journal titled “Borrowers: Important considerations for debt capital decisions in 2015 and 2016.” Read the article here.
NorthMarq Capital announces Noah Juran as vice president of its Cincinnati regional office
CINCINNATI (June 2, 2015) – Noah D. Juran has joined the Cincinnati regional office of NorthMarq Capital as vice president and producer. At NorthMarq, Juran will focus on all types of financing including life insurance lending, CMBS/conduit lending, Freddie Mac and Fannie Mae and bank loans. With his addition, the three producers in the Cincinnati and Louisville offices have experience in banking, mortgage banking and life company financing — a rare combination in the commercial real estate industry.
Most recently, Juran served as associate director of commercial real estate loan operations at Marcus & Millichap Capital Corporation. Before this, he held positions for nine years at US Bank and Summit Investment Partners, now Ameritas.
“We are excited to have Noah join our team. He brings experience as a successful mortgage banker and solid lending experience, and is well known in the Cincinnati market area,” said Susan Branscome, senior vice president/managing director of NorthMarq Capital’s Cincinnati office.
Juran is a participant in the Urban Land Institute (ULI), NAIOP and University of Cincinnati Real Estate Roundtable events. He graduated from Ohio State University with a Bachelor of Science in Business Administration.
NorthMarq acquires Quest Commercial Capital Corp. in Cincinnati
MINNEAPOLIS (Dec. 8, 2014) — Minneapolis-based NorthMarq Capital, LLC., one of the nation’s largest commercial real estate mortgage banking firms, has acquired Quest Commercial Capital Corp in Cincinnati, Ohio. Quest Commercial Capital Corp. had been in business 17 years with many investor relationships and a strong servicing portfolio.
Joining NorthMarq from Quest is Susan Branscome, the firm’s founder, who will become NorthMarq’s fourth female managing director. The company was founded in 1998 as a mortgage banking firm providing long-term financing for industrial, office, multifamily and retail projects. Quest was a woman-owned business and Susan was one of only two women in the country to have started her own mortgage banking company.
“We have long admired the work of Quest Commercial Capital under Susan’s leadership,” said Jeff Weidell, president-NorthMarq Capital. “The company has become a strong force in their market and we look forward to supporting Susan as she continues to grow the business in Cincinnati.”
“This acquisition is a great addition to NorthMarq Capital as it offers coverage to a part of the country we didn’t serve from our other regional offices,” said Weidell.
Prior to founding Quest Commercial Capital, Ms. Branscome was vice president of Capstone Realty Investors in Cincinnati where she originated more than $150 million in commercial mortgage loans.
“I am excited to join such a great organization in NorthMarq Capital. The company has an unprecedented reputation for excellent loan production and loan servicing. We have tremendous opportunity working together to originate loans in this region of the country,” says Branscome.