Northmarq Capital?
Anyone have any insight on them? Specifically their NYC office? Seems they are a mortgage banking firm. How do they rank against the usual debt shops?
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bump
....so you both have interviews with them
Who?
I see you just bumped your own thread. nevermind.
Multiple offices were recently purchased by CushWake. Commercial RE world is getting smaller with larger brands. That said, know a guy from my Uni that works there, seems to enjoy it. He's in a smaller office in a large SE market, but i'm sure he sees plenty of work.
I believe only the brokerages were bought out.
so is Nortmarq like Berkadia, they have an investment sales arm but are also a lender? So they sold their investment ales arm?
They had a partnership with C&W previously. Now C&W is buying out Northmarq. I believe that after the buyout there won't be an investment sales arm at all - they will just be a debt arrangement shop (they don't lend with their own capital).
Thank you!, and curious, I thought Northmarq was a GSE lender, do other GSE lenders like Hunt, Berkadia, Arbor, Berkely Point all lend their own capital? or are they all brokers?
Umm...GSE lenders by definition are not lending with their own capital - they are arranging loans on behalf of the GSEs.
As far as I know, everyone you named is a placement agent/broker only.
Well, that is the simplified version. The GSE lender underwrites to the GSE standard, there is an agreement put into place that the GSE will buy the loan, the lender funds (most of them use a warehouse line of credit to do this), they warehouse the loans until there is a big enough bundle for the GSE to purchase, GSE purchases and then sells the bonds. This is the same process as CMBS except that in CMBS world the lender doesn't have a predetermined buyer and has to go through the bundling/pricing exercise themselves (they are basically taking on the warehouse risk internally).
Thank you so much! this was helpful! and as you seem knowledgeable, maybe you can help me here, few weeks ago, I asked this q here, but nobody responded.
I get that for multifamily loans, the GSE lenders have a predtermined buyer in Freddie and Frannie and underwrites the loans to the GSE standard and the GSE underwriter has to sign off on it before close. But what about residential loans, particularly non portfolio loans that are also going to be sold to Freddie and Fannie. Does the GSE underwriter have to sign off on it before close and will the GSE underwriter and the lender work together there or does the lender fund the loan, close and then the GSE looks at the loan after close to see if it meets their criteria and makes the decision to buy or not buy.
I am interested in Freddie Mac's multifamily analyst rotational program, so I just want to learn the nuances of the process.
For CMBS pools, loans can be "kicked-out" of the pool prior to securitization and most contributor agreements have forced buy-back clauses. So if the loan is in the pool, but if it is found that something was wrong with the underwriting at a later time, the original contributor has to buy back the loan at par.
While I'm not super familiar with residential rules, given the massive quantity of residential loans that the GSEs buy, I think it would be highly unlikely that they approve every single loan before they purchase, but they would have a buy-back clause similar to what is in place for CMBS.
In the end though, the GSE rule book is pretty hefty (residential or commercial) and their programs are pretty black and white in terms of what fits inside the box so there probably isn't a whole lot of contributor buy-backs happening.
I thought Northmarq was a correspondent as well, e.g. they have a balance sheet for some product. I could be wrong.
Ahh, gotcha. I haven't fully read the articles. Didn't affect my metro bubble, so didn't really care haha
Northmarq is owned by the Pohlad family (owners of the Minnesota Twins) and with roots in the Midwest. I've seen some deals from them over the years and it seems that their focus/sweet spot is the sub $30 million Class B/B+ multi-family product. I don't know much about their NYC office specifically, but my guess is that they are working with more high net worth individuals, small developers and family offices vs. the big institutions.
We had an equity broker from this shop pitch us a deal. Wasn't impressed. Seemed to be extremely unknowledgeable about the market and could not wrap his head around our proposed hybrid distribution structure (senior sub on operating cash flows, pari passu on capital events). They appear to do smaller or middle market deals, and struggle on working in the big leagues.
I had the phone interview.
Was pretty informational no technicals, just a run through resume type chat. Salary is 60-70K plus up to 20% bonus. If they're doing smaller deals then why is the pay so high for an Analyst compared to say an HFF? What's the catch?
Are there any good exit ops out of them or will you just be competing with guys from more prestige brokerage/debt/equity shops?
great salary, I have interviewed with similar shops like Berkadia, Arbor, Berkeley Point and pay was not that good. Do you have 2-3 years of relevant experience? and is this for their debt team or investment sales team?
Just because they focus on smaller deals doesn't mean that they don't make money - it just means that they have to do more deals to make the same amount of money. My guess is that they are trying to meet the market for analysts in NYC; 60-70k with a 20% bonus seems pretty typical for an analyst.
that's not bad, just curious which region?
Bigger deals does not mean more money. Most commissions on those large instutional deals cap out, plus the commission splits with the company. Middle market is where it's at.
As an FYI, Northmarq was the 7th largest intermediary in the country for 2016, per MBA rankings.
In general, Northmarq is a good shop and is well regarded in the lending community. As with all real estate shops (particularly in property/debt brokerage) performance is very specially tied to the shop/team you are working with. I dont know how they stack up in every city. For example, I dont think Northmarq has ever been top 5 in my city in recent years, but they must do well in some others to be 7th in the US.
US 1- Eastdil 2 - HFF 3 - Meridian 4 - PNC RE 5 - CBRE 6 - JLL 7 - Northmarq
The NY list looks about the same as the above national list, although C&W was ahead of them. . That said, all things being equal, CBRE/JLL/Eastdil/C&W/HFF would look better on your resume.
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