These Traits Make Lenders Stand Out

SAN DIEGO—Speed, service and flexibility are some of the assets necessary for success as a lender in an ultra-competitive environment, said speakers at RealShare San Diego yesterday. Panelists on the “San Diego Attracting Capital” panel told the roughly 250 attendees at the event what makes them unique in such a crowded arena.

Moderator Robert Lee, CCIM, director, capital markets, for Silver Portal Capital, said the outlook on San Diego is positive, and there are many “cranes in the air.” He asked the panelists to describe what makes them special in this expanding market.

Alexa Mizrahi, loan originator for Lone Oak Fund, said, “Our niche is speed. We look for well-qualified borrowers and make sure they can secure a site. Speed and certainty of execution make us different from other lenders—we often close deals within a week.”'

Sagiv Rosano, founder/president of Rosano Partners, said, “Service is what makes us different. We like to present different alternatives to our clients, and we package deals really well.”

Elliot Shirwo, EVP of Bolour Associates, said his firm is able to fund loans on its own balance sheet and has its own investment and development platform. These factors enable the company to partner with borrowers to address their complex needs, providing the “added extra cheese to address these complex issues,” he said.

Jon Pasquini, VP, senior commercial real estate officer of Torrey Pines Bank, said his firm likes value-add and construction and likes to be paid off when a loan goes through at a cheaper rate. Meanwhile, flexibility in underwriting and the ability to fund loans in-house in all product types are what give Marcus & Millichap the edge, according to Chad O'Connor, first VP, capital markets, for the firm.

When Lee asked about each panelist's typical loan structure, Mizrahi said Lone Oak is asset-based—“We have the skin-in-the-game philosophy”—and location driven. Rosano said his firm has no specific structure; rather it tries to understand what each client is trying to achieve. Shirwo said his firm is also an asset-based lender, “but we bet on the jockey,” and Pasquini said flexibility is his firm's strong point—while it is known as a portfolio lender, it has the size and strength of the big guys with the nimbleness of a local firm.

Lee asked about ground-up development vs. repositioning deals, and Mizrahi said that while her firm doesn't provide construction financing, it does fund for entitled land. Often a borrower will tear down and build from the ground up, and they're “coming to us because there's no prepayment penalty.”

In addressing other strengths, Shirwo said his firm understands contamination issues based on its development experience and brings that experience to its lending relationships with borrowers that face similar issues on their projects. Rosano said his firm was approached with a failed Costco development on an unwanted site, and his firm eventually successfully converted its use to healthcare.

During the question-and-answer segment of the session, an attendee asked if the panelists are seeing private equity from families come into their deals, and Rosano said, “Preferred and JV equity is expensive, so we try to minimize it.” O'Connor said many private clients want to keep their existing asset, so they cash out and go in with a developer. Lee added that debt is so cheap right now, even on value-add purchases, that “if you have a good asset, consider locking in your rate long term and stabilizing it.”

Ultimately, the panelists said they were looking to grow their involvement in the San Diego market. “San Diego is such a desirable place to live,” said Mizrahi. “We would love to grow our business here. Prices are rising, and we're seeing a lot of residential investments down here.”