Commercial Real Estate Brokers

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Commercial Real Estate Brokers

Commercial Mortgage Connection, Inc. and Universal Commercial Capital are commercial real estate mortgage brokers that underwrite loans. Clopton Capital and Progress Capital are those that offer specialized types of financing, while Hunt Real Estate Capital and Friedman Real Estate are those that have expanded to provide other services in the commercial real estate space.

Commercial Mortgage Connection, Inc.

  • Commercial Mortgage Connection, Inc. is a commercial real estate (CRE) mortgage broker headquartered in New York, United States.
  • The company connects borrowers to private sources of CRE mortgage finance, executing underwriting internally on each borrower loan request to determine how much risk the lender is willing to accept.
  • CMC has 50+ combined years of experience, servicing clients commercial loans of $1 million — $150 million at low interest rate of up to 1.9%.
  • In addition to leveraging commercial real estate mortgage underwriting service, CMC also generates revenue by connecting concerned borrowers with lenders of hard money and bridge loans, as well as those of apartments and multifamily property lending. Therefore, it is expected that revenues would arise from referrals to private lenders, listing fees for new lenders, and advertising on the website.
  • Although there are no publicly available success metrics to show how important these additional streams of revenue have become to the company, its bridge loans and apartments/multifamily loans have loan-to-value ratios of more than 90% each, while the hard money loans have loan-to-value ratios of about 75%.

Universal Commercial Capital

  • Recognized for its "flexible, common-sense underwriting, and efficient loan programs," Universal Commercial Capital (UCC) is a U.S.-based commercial real estate mortgage broker.
  • UCC's commercial real estate mortgage loan programs start from $150,000 and include the fixed-rate mortgage (FRM), adjustable-rate mortgage (ARM), balloon mortgage, and the interest-only mortgage.
  • The company is a distinguished member of the American Association of Private Lenders and the National Association of Mortgage Brokers.
  • The company generates additional revenue from offering other financing options in the commercial real estate space such as hard money loans and fix and flip loans.
  • There's no publicly available success metric to show how important those additional streams of revenue have become to the company; however, all UCC loans have a faster turnaround time, closing within 7 days.

Clopton Capital

  • Headquartered in Chicago, Illinois, United States, Clopton Capital operates nationwide as a commercial real estate mortgage firm specializing in "commercial mortgages, commercial bridge loans, and real estate private equity for transaction sizes ranging from $1 to $40 million."
  • Clopton Capital offers Debtor In Possession (DIP) financing, a specialized financing option, to finance companies who are in chapter 11 bankruptcy reorganization. DIP financing can "help investors save their real estate value after all else fails."
  • The other financing options delivered by Clopton Capital, as ways of raising additional revenues, include commercial bridge loans, commercial construction loans, joint venture real estate loans, mezzanine financing, and preferred equity.
  • There's no publicly available success metric to show how important those additional streams of revenue have become to the company; however, commercial bridge loans and mezzanine financing have loan-to-value ratios of about 75% and 85%, respectively.

Progress Capital

  • New York-based Progress Capital is a "commercial real estate mortgage brokerage firm specializing in arranging debt for commercial real estate owners and developers of mixed-use, multi-family, construction, industrial, retail, office, and commercial storage properties."
  • Progress Capital offers a specialized type of financing called Specialty Loans, which is designed to "service all types of financing need," outside its loan programs.
  • The company generates additional revenue from other financing options in the commercial real estate space such as fixed-rate loans, construction loans, bridge loans, mezzanine loans, agency loans, lines of credit, and land loans.
  • There's no publicly available statistic to show how important those additional streams of revenue have become to Progress Capital.

Hunt Real Estate Capital

  • Hunt Real Estate Capital is a commercial real estate (CRE) mortgage broker headquartered in New York City.
  • A leader in providing commercial real estate mortgages nationwide, the firm "finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial and self-storage facilities."
  • Hunt has 46 years of commercial real estate lending, "currently servicing a commercial loan portfolio of $16.3 billion."
  • The firm, which started as a commercial real estate mortgage broker, has expanded its services to provide debt investment management (investing in short-term or long-term bonds) for the commercial real estate sector.
  • The services offered by the firm under the debt investment management option include Private Fund Management and Public Company Management.
  • Its private debt funds "deploy capital into fixed- and floating-rate mortgage assets on a leveraged basis to achieve premium returns."
  • Its public debt fund is "externally managed and advised by OREC Investment Management, LLC placing a strong emphasis on the middle-market multifamily sector."

Friedman Real Estate

  • Headquartered in Farmington Hills, Michigan, the commercial real estate mortgage broker claims to be the "largest full service privately held commercial real estate organization in the nation."
  • Friedman Real Estate has also expanded into providing other services in the commercial real estate space, generating revenue in the process. For example, the firm manages commercial real estate, for which it earns a management fee, designs properties and assists with the design and set-up of telecommunications and information technology.
  • The firm manages "more than 140 commercial properties encompassing more than 16M SF and more than 22,000 apartment homes throughout the United States. "

Research Strategy

The research team identified commercial real estate mortgage brokers that either underwrite loans, offer specialized types of financing, or have expanded to provide other services in the commercial real estate space. Although the team was able to provide an overview of each company and how they generate additional revenues, data on the success metrics, or the impact of services on the overall revenue was unavailable in the public domain.

We searched each firm's official website for financial statements, including annual reports and proxy statements that could help in determining possible success metrics tied to the additional streams of revenue or the impact of the additional services to the overall revenues of the brokers. However, we learned that these companies are privately-held (a similar scenario witnessed among commercial real estate mortgage brokers in the United States), and as such, their financials are not disclosed to the public.

Next, the team searched for the firms' profiles in private company databases like PitchBook, Insta Financials, and PrivCo to locate any leaked financials on the firms' success metrics, or the impact of the services on their overall revenues. Unfortunately, the profiles of the brokers are yet to be incorporated in the databases. Additionally, the contents of these databases are restricted to paid subscriptions.

We also conducted press searches through trusted media sites to locate any media coverage surrounding the success metrics or other financial information of the identified commercial real estate mortgage brokers. This also included performing subjective assessments; for example, exploring the brokers' social media platforms to determine the efforts they place into marketing those services to assess their importance to the overall business. Nevertheless, these approaches also proved futile as the brokers' financials are not discussed in the mainstream media and their marketing efforts on social media platforms are not distinguishable with respect to the services extended.
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