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Newmark Realty Capital, Inc. (NRC), the largest independent commercial mortgage banking firm in the western United States, closed $316.5 million of commercial mortgages during the first quarter of 2019 across 56 transactions. Toward the end of the first quarter, interest rates dropped significantly. NRC believes the sudden drop in interest rates has contributed to their increased activity and the expectation of much greater production in Q2 of 2019.
“Underwriting and performance are holding true across our servicing portfolio for the start of 2019 and we are confident in current market fundamentals anticipating a strong 2Q2019. Market analysts are watching for a major cycle correction; however, this correction could be just as likely a series of minor adjustments as we reach a manageable plateau. Barring any unforeseen events that might disrupt market conditions, we move into 2Q2019 with genuine confidence.” -Michael Heagerty, principal and CFO, NRC
NRC 1Q2019 commercial mortgage production was led by multifamily, office and self storage assets in descending order of value of funds placed. Additionally, NRC’s San Francisco, Los Angeles and Phoenix production offices led the firm’s production totals. NRC services a national marketplace.
“We begin each year with the MBA’s national conference and then Newmark hosts a lender summit in Phoenix, AZ with more than 40 lenders in attendance,” said Adam Parker, principal with NRC’s Phoenix production office. “At both events, we heard many of our lenders outline their increased appetite to lend more in 2019 in comparison to 2018. With increased lender allocations, we are projecting the marketplace to be hyper competitive. As lenders compete for business that means it is a good time to be a borrower.”
Additionally, NRC’s principal leadership offered the following trends as worthy of consideration moving into 1Q2019:
Based in San Francisco, NRC is a privately held company and a full-service mortgage banking firm with an extensive lineup of correspondent lenders utilizing NRC’s production, closing and servicing capabilities. Established in 1991, NRC is currently staffed by over 70 employees in regional offices throughout the western United States. The company’s national servicing platform valued in excess of $12 billion represents more than 1,300 loans located in 40 states. NRC is rated as a Primary Servicer by Standard & Poor’s and is one of a select few non-banking/non-insurance chartered companies with this designation.