StreetMac Aligns with Urban Retail Properties to Provide Advising Services
StreetMac, a Northbrook, Ill.-based commercial real estate financing firm, today announced an alliance with Chicago-based Urban Retail Properties, LLC to advise Urban on opportunities for acquiring and managing distressed retail mall properties nationwide.
The alliance teams Urban, which has developed more than 75 domestic and international shopping destinations and mixed-use projects and is the nation’s leading third-party real estate manager, with StreetMac, whose senior executives have originated more than $4 billion in commercial real estate financing transactions.
StreetMac’s President and Chief Executive Officer David Jackson, who previously founded and served as chief executive officer of Chicago-based First Security Commercial Mortgage and First Security Investor Reporting, will lead the StreetMac team in this partnership. The First Security companies were among the pioneering firms of integrated commercial mortgage backed securities (CMBS) origination, securitization and servicing in the 1990s. Jackson is joined by Sean O’Malley, StreetMac’s senior vice president and national lending director who previously served in executive leadership roles for RBC Capital Markets and GE Real Estate’s North America Debt Division.
Drawing upon its relationships with capital market sources and special servicer organizations nationwide, StreetMac will identify distressed retail mall ownership and management opportunities for Urban and advise the firm in subsequent acquisition transactions with select capital market participants.
StreetMac and Urban have devised a proprietary formula that will allow Urban to acquire properties using a model that maximizes repayments to lenders and CMBS investors.
“Our partnership with Urban presents a powerful and unique proposition for mall owners and investors where they can divest themselves of property holdings under distress because of weak retail market conditions,” says Jackson. “Our model allows current property owners to avoid potential bankruptcy or property foreclosure due to an inability to repay or refinance maturing loans or debt, reduce their leverage, and improve their investment flexibility and liquidity.”
In addition to identifying property ownership and management opportunities, StreetMac will also provide Urban with due diligence advisory services on applicable acquisitions.
“With its relationships and CMBS experience, StreetMac will be able to introduce Urban to a new audience of servicers and lenders who may find this acquisition formula to be a superior alternative given today’s challenging financial market conditions,” says Len Tobiaski, President, of Urban Retail Properties, LLC. “We look forward to working with StreetMac to ascertain market opportunities and expand our retail property ownership and management portfolio.”
Based in Northbrook, Ill., StreetMac (www.streetmac.net) was founded in 2007 to create and bring new financial products to the commercial real estate marketplace. In addition to offering clients a full range of bank, agency, life insurer and conduit financing programs, the firm leverages its relationships with local, national and international lenders to provide CMBS advisory services to real estate organizations nationwide.