GlobeSt.com: You were at Heller for 14 years. Why was now the right time to switch?

Petrovski: It's the right time for Merrill Lynch Capital, especially because there is such limited competition in the middle-market.

GlobeSt.com: Some other Heller people came with you.

Petrovski: Yes, Craig Andreen, who is now our national originations manager, and Rob Kukulka, who will serve as our credit manager.

GlobeSt.com: Who exactly are you going after with your focus on middle-market transactions?

Petrovski: It's those developers or investors who acquire or build one to three properties per year. They're buying moderate-sized assets with values between $5 million and $30 million. These are people who generally are not in the hunt for $100-million office buildings or large hotels.

GlobeSt.com: This doesn't mean that you're going to be focusing on second-tier markets, does it?

Petrovski: Absolutely not, just more moderately sized real estate--the non-trophy assets.

GlobeSt.com: But aren't the smaller investors the ones to pull their claws in the farthest during a recession? Why start there?

Petrovski: You'd be surprised. We're talking about an individual net worth of anywhere from $5 million to $50 million. They tend to be entrepreneurs, and entrepreneurs by nature are streamlined entities. They're more adept than larger institutions at ferreting out deals. Their ears are closer to the ground.

GlobeSt.com: So how much business can these entrepreneurial players bring into Merrill Lynch Capital?

Petrovski: I'd like to do a half billion in lending in the last seven or eight months of this year.

GlobeSt.com: How much of that will come from cross referrals from other units within Merrill?

Petrovski: I'd love to see 20% of our business come in cross-referrals. But the referrals could work the other way as well. Merrill has a strong conduit program, and I'm excited about the cooperation between bridge loans and the conduit program. We'd love to be a source for Merrill conduits.

GlobeSt.com: One way or another, that half billion in lending dollars is aggressive for a market that may or may not have bottomed out, no?

Petrovski: This market is primed and waiting, especially with the tremendous consolidation among banks and credit companies. The number of bridge-lending sources has dwindled, so the timing is right for Merrill Lynch Capital.

GlobeSt.com: You mentioned the garden apartments and the retail centers. What products will you be focusing on?

Petrovski: The four main food groups--office, industrial, apartments and retail.

GlobeSt.com: You're wise to stay away from hotels.

Petrovski: That's easy to say, but some entrepreneurs might be able to sell or buy at a good price, although we don't see that happening right away.

GlobeSt.com: So how much more gearing up do you have to do?

Petrovski: We'll be staffing up through the month of February and getting or policies and procedures in place. In March we'll begin to look at opportunities for first-mortgage loans, mezzanine and equity. Most likely, we'll be funding our first deal in the later half of April.