Remington Capital – Brad Sweet

On behalf of Remington clients I work closely with our Capital Markets Group. They are responsible for identifying, nurturing and expanding our unmatched global network of active working relationships with traditional lenders and investors, as well as public and private sources of available capital in the U.S. and abroad.

Our access to capital for commercial real estate projects distinguishes Remington from others in the financial services industry. Since 1993, Remington has provided hundreds of commercial real estate brokers and their clients with ready access to all types of capital, arranging billions of dollars of financing for even the most challenging debt, mezzanine and equity transactions.

Key to our clients’ success in obtaining capital is the use of a global network of capital sources that are ready, willing and able to deploy capital for viable commercial projects requiring minimum loan amounts of $500,000 in the U.S. and $5 million from sources abroad.

The Capital Markets Group also manages special projects including the Secured Capital Income Fund LP, a planned initial capital markets entry by Remington with a joint-venture equity fund specializing in bridge loan financing.

Like other account executives at Remington, I’ve been spending more time with brokers who are assisting owners of hospitality properties. Those owners are looking for relief from lower revenue and falling property values. Brokers are seeking fresh access to active capital sources – which we can provide.

It’s estimated that $3.5 billion in hospitality loans are currently delinquent (60 days late).  Just one month ago the value was $3 billion, an increase of $500 million in just 30 days.

This shows that the hospitality sector is steadily taking a turn for the worse. The total number of delinquent commercial loans is at $17.8 billion across all industries and rising steadily.  Either the banks will have to extend these notes, take a lower pay-off or foreclose.  Either way, the outlook is not good for them or the owners.

At Remington we’re finding traction with the Distressed Owner Recapitalization (DOR) Program with brokers who are seeking to support hospitality sector owners.  Our Chairman Andy Bogdanoff recently spoke to a national group of commercial real estate experts and had these comments about the overall problem:  

“With U.S. banks in a deep and continuing liquidity crisis and with $1.2 trillion in commercial debt due to mature by 2013, thousands of real estate owners and developers across the country will soon find themselves between a rock and a hard place when their loans mature,” Andy Bogdanoff of Remington told a meeting of industry representatives.

Bogdanoff, who has been in the financial services industry for 35 years, founded Remington in 1993.  “Even if bank liquidity weren’t an issue, estimates are that two-thirds of the securitized loans and half of the whole loans due to mature between 2010 and 2013 would not qualify for refinancing due to today’s more stringent banking standards,” Bogdanoff said.

Bogdanoff added that the unprecedented high cost of funds, coupled with a 40% decline in real estate values since 2007, further compounds the problem. “With property values less than the original debt, thousands of owners and developers may have no choice but to sell their properties or face bankruptcy when their loans mature. If the problem isn’t solved soon, the result could be a disaster for the commercial real estate industry and the U.S. economy as a whole.”

Reach out to my team and let’s find a financing solution right for you and your client(s).  Thank you.

Brad Sweet – Remington

In the challenging capital market of 2009, Remington is a strategic partner with an enviable record of success, especially for projects previously not funded from conventional sources.

Remington is ideally situated as an intermediary between the client in need of financing – especially those with problematic projects – and the hundreds of private and institutional sources of commercial capital with whom Remington has strong, active and productive relationships.

The experts at Remington also have in-depth knowledge, market expertise, and a commitment to client advocacy that translates into the kind of creative, value-enhancing insight needed to help evaluate, restructure, and customize previously difficult-to-fund transactions into new financing opportunities.

Remington also has our industry’s first fraud policy that protects our clients and partners from fraud, scam and other challenges that sometimes have plagued our industry. We are committed to eliminate fraud. Read more about the Remington fraud policy here:  http://www.remingtonfinancialgroupfraudpolicy.com/

Debt Financing

Since our founding in 1993, Remington has been advising clients on the use of leading-edge financing strategies to help secure short- and long-term debt. We have extensive expertise in distressed debt transactions, bridge loans, and permanent loans, as well as forward takeout and standby commitments. The special access of the team at Remington to domestic and international private and institutional capital sources is a source of unique differentiation in our industry.

Contact me today and we can discuss the options that are just right for you. Brad Alan Sweet, Remington