Market's woes create 'opportune time' for brokers' new company by ProQuest


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									                                                                         Real Estate

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Market’s woes create ‘opportune                                                                             few brokers to work with us and to grow into a
                                                                                                            mid-level size firm.”
                                                                                                                 By striking out on their own, Deerwood’s

time’ for brokers’ new company                                                                              cofounders could make more money for them-
                                                                                                            selves, said Ira Bergstein, a principal of Pal-
                                                                                                            isades Financial LLC, a Fort Lee-based com-
Deerwood co-founders aim to take advantage of tight conditions                                              mercial real estate lender and advisory firm.
                                                                                                                 “They’re taking their clients, they’re taking
                   BY EVELYN LEE                           Most borrowers have had limited access to        their expertise and they’re trying to do it for
TWO VETERANS of the commercial mortgage              the debt market, which will create demand for          themselves — and not for 50 cents of a dollar;
brokerage industry have opened their own New         brokers who have relationships and expertise in        they want 100 cents of a dollar,” he said.
Jersey firm, looking to take advantage of opportu-   the financial markets, Katz said.                           But starting a new firm in a shaky econo-
nities in a tight real estate lending environment.         “We have relationships with lenders who          my is a lot to swallow, Bergstein said. “It’s risky,
      David Rosenberg and Abe Katz, who had          are actively financing real estate in this environ-    because you may not do any business for quite
both been top brokers at New York-based Merid-       ment,” Katz said, including New Jersey-based
ian Capital Group — one of the nations’ largest      savings banks, large commercial banks, life
commercial mortgage bro-                             insurance companies and opportunistic funds.              Most borrowers have had
kerage firms — left the                                    “In this market, there is no easy deal,” Katz       limited access to the debt
company last month to                                said. “All loans require some sort of structure
start Deerwood Real Estate                           and thinking out of the box.”                              market, which will create
Capital, in Fort Lee.                                      Deerwood will focus on arranging all types                                                                               David Rosenberg and Abe Katz, co-founders of
      “Given the state of the                        of debt and equity financing, as well as mezza-
                                                                                                                    demand for brokers.                                             Deerwood, believe they have a bright future, since
current commercial real                              nine, construction and bridge loans, he said.                                                                                  both commercial brokers already have established
estate market, we thought                            The firm, which is actively looking at a number        some time,” he said, noting that a number of                            relationships throughout the financial markets.
this was an opportune                  Abe Katz      of transactions, will handle deals that are at         firms have not closed a single deal in the past
time to launch our business,” said Katz, 35, who     least $500,000 for private and institution
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