He tells GlobeSt.com that while the firm has no hard metrics or benchmarks in place for its Northeast loan portfolio, "I've set a goal of $150 million for the first year," in 2008. Theoretically, he adds, the company would like to process the same volume, give or take, every year but that can be difficult to project. "That is a big cumulative number of just one area of the country. Going forward, the conduits are likely to jump back in sooner or later."
Washington says the company's loan criteria is fairly broad. It is interested in both refinance and new development. Class A is fine, as is anything that requires a value add, such as deals that require a $5,000 to $20,000 per unit rehab. "The deals have to work from an underwriting perspective but we want to cast a wide net."
Washington added that the firm is also willing to consider so-called broken condo opportunities, but on a more limited basis. "The best ones are those that have only a small number of units sold as condos. There are things that can be done within the DUS program to make those deals work."
Washington plans to focus on Boston, the lower New Hampshire market, northern New Jersey, eastern Pennsylvania and upstate New York. Tertiary markets are fine, he adds. The company "loves" DC, he adds. "Because of the fact that we are located here and have some good relationships here we can count on doing some business in this market. But it is very competitive because a lot of DUS lenders are headquartered here to be close to Fannie."
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