Buchanan says the move was necessitated by growth at the firm, which recently completed its first billion-dollar year, closing debt and equity transactions during 2003 that totaled $1.1 billion among its equity investment and advisory services divisions.

The $1.1-billion figure represents a record year for the firm and a 35% increase over 2002 activity, according to Robert Brunswick, president and CEO of the firm, which is an equity investor with its own proprietary investment funds as well as arranging debt and equity financings through its capital markets relationships.

The locally based firm two operating divisions that provide real estate capital to owners and developers: Buchanan Capital Partners and Buchanan Capital Advisors. The firm's Buchanan Capital Partners group makes direct equity investments backed by individual and institutional investors, while Buchanan Capital Advisors provides financial advisory services and arranges debt and equity financings that are funded by third party capital sources.

During 2003, Buchanan Capital Partners invested $75 million in 14 investments with developer and operating sponsors that capitalized $400 million in real estate projects. The Capital Partners unit commonly structures its investments as joint venture equity or mezzanine debt. Most recently, for example, it funded a $20-million mezzanine loan for the development of Esprit Marina del Rey, a $150-million development that includes 437 luxury apartment units and a 227-slip marina facility in Marina del Rey, notes Tim Ballard, chief investment officer.

Buchanan Capital Advisors arranged just over $1 billion in debt and equity transactions for developers and owners during 2003, working with third party capital sources in arranging the full spectrum of capital structures. Office and retail properties accounted for 60% of the financings, or $600 million, with industrial financings totaling $140 million. The year 2003 marked the first full calendar year of operation for Buchanan Storage Capital, a division that specializes in arranging debt and equity capital for self-storage owners, which secured $164 million in self-storage financings.