THE SEPTEMBER 2001 MERGER OF WACHOVIA and First Union has not only created a banking giant — Wachovia Corp. — with 20 million customers and $322 billion in assets, but also a real estate lending powerhouse.

“We don't see why we can't increase our market share in excess of 6%. In fact, we could be 10% of the domestic market in the near-term,” says Managing Director Bill Green, who came over from First Union and leads the real estate capital markets division. “There are no limitations to our platform.”

Wachovia finished No. 8 in NREI's Top Direct Lenders Survey, with $4.1 billion financed in 2001.

While integration teams continue to work hard to implement best practices, identify new marketing opportunities and explore efficiencies, the full merger integration process is expected to be completed in two to three years. So far, however, the merger has been hailed as win-win for both parties, and especially for its real estate group.

“There was very little crossover with First Union. What First Union had, Wachovia did not,” Green says.

For example, in comparing the operations and services of the two banks, executives determined the capital markets business at the merged bank was made up of about 95% of First Union's accounts and 5% of Wachovia's. In the investment banking arena, First Union had a share of about 85% to Wachovia's 15%. Green adds that Wachovia's traditional real estate banking business accounts for about $25 billion, or nearly 75%, of the merged bank's accounts.

Under the new structure, the firm's real estate financial services are divided into two major categories: traditional real estate banking and real estate corporate/investment banking.

The traditional real estate banking division serves developers, investors, owners, and smaller pension and opportunity fund managers.

The corporate/investment banking division provides services to REITs, corporate real estate users, and larger pension and opportunity fund managers. It also offers operating credit facilities, commercial mortgage-backed securities (CMBS) and mezzanine financing, among other services.

In May, Wachovia launched a national advertising campaign to promote the new Wachovia brand. The campaign's initial stage will promote Wachovia Securities, the brand name under which Wachovia Corp. provides corporate and investment banking, including real estate and retail brokerage services.

Mike Slocum, executive vice president of real estate financial services at Wachovia, says the merger has strengthened the firm's position in its market, which now extends from Connecticut to Florida with 25 different offices throughout the East Coast.

With the integration of the merger process moving smoothly, Wachovia's immediate goal is to increase its share in the $1.7 trillion domestic real estate market, Green says, adding that Wachovia currently provides 6% of the nation's mortgage debt to the banking sector and 6% to the conduit sector.

Wachovia also is expanding into other financial services areas. Earlier this year, the bank launched asset management services for third parties. The future growth of Wachovia and any other real estate financial services provider, however, is closely tied to the economy.

“We have obviously seen a slowdown. Projects are staying much longer on the drawing board,” adds Slocum. “But the markets in New England, New Jersey and Eastern Pennsylvania are seeing less deterioration than the Southeast. We have not seen any significant deterioration in our portfolio.”

Top 25 Direct Lenders

The Top Direct Lenders & Intermediaries rankings were first published in April 2002 and are based on responses to NREI's Top Lender Survey questionnaire. The Top Direct Lenders listing reflects total dollars financed during the 2001 calendar year. The second survey, beginning on page 67, ranks financial intermediaries, including mortgage brokers and financial firms that arranged or facilitated transactions during 2001. The listing includes firms financing direct loans, credit lines, CMBS lending and other forms of more direct investment to the industry.

1. Bank of America/Banc of America Securities LLC
100 N. Tryon St., Charlotte, NC 28255
Phone: (704) 386-2278
Fax: (704) 387-1710
Web site: www.bankofamerica.com
Officers: Eugene J. Godbold, Jr., Real Estate Banking Executive; Ron D. Sturzenegger, Managing Director Real Estate & Lodging Invest. Banking; George G. Ellison, Managing Director Global Structured Finance; Linda M. Westphal, VP
Financed in 2001: $21.6 billion

2 Lehman Brothers745 Seventh Avenue, New York, NY 10019
Phone: (212) 526-5191
E-mail: kcohen@lehman.com
Officers: Richard S. Fuld, Jr., Chairman/CEO; Joseph M. Gregory, Managing Director/CEO; Kenneth Cohen, Managing Director
Financed in 2001: $8.2 billion
Lending goal for 2002: $10.0 billion

3 Credit Suisse First Boston
*Totals include lending volume of Column Financial
11 Madison Ave., New York, NY 10010
Phone: (212) 325-2000
Web site: www.csfb.com
Officers: Steve Kantor, Managing Director/CSFB; Robert Brennan, Managing Director/CSFB; Kieran P. Quinn, President/Column; Darrell Moore, CFO/Column
Financed in 2001: $6.4 billion

4 Goldman, Sachs & Co.
85 Broad St., New York, NY 10004
Phone: (212) 902-1000
Fax: (212) 902-3000
Web site: www.gs.com
Officers: Mark Weiss, Managing Director; Dan Sparks, Managing Director; Jeff Fastov, Managing Director; Mark Buono, VP
Financed in 2001: $5.7 billion
Financed by Region:
Northeast: $2.9 billion
Southeast: $532.2 million
Southwest: $428.7 million
West: $1.9 billion 5

5 UBS Warburg
1285 Avenue of the Americas
New York, NY 10019
Phone: (212) 713-8844
Fax: (212) 713-2099
Officers: Brian Harris, Managing Director; Peter Smith, Exec. Director; Marc Warren, Exec. Director
Financed in 2001: $4.8 billion
Financed by Region:
Northeast: $2.4 billion
Southeast: $500 million
Midwest: $500 million
Southwest: $400 million
West: $1 billion
Lending goal for 2002: $5 billion

6 Prudential Mortgage Capital Co.
100 Mulberry St., G-4, 8th Floor
Newark, NJ 07102
Phone: (888) 263-6800
Fax: (973) 367-8210
E-mail: pru_mortgage-capital@prudential.com
Web site: www.prudential.com
Officers: David Twardock, President; David Durning, Managing Director/Originations; Amy Rubin, Director, Marketing & Promotions
Financed in 2001: $4.6 billion

7 Morgan Stanley
1585 Broadway, New York, NY 10036
Phone: (212) 761-6282
Fax: (212) 761-3289
E-mail: fred.harmeyer@morganstanley.com
Officers: John Westerfield, Managing Director; James Flaum, Managing Director; Fred Harmeyer, Exec. Director
Financed in 2001: $4.2 billion
Lending goal for 2002: $4.5 billion

8 Wachovia Securities
301 S. College, Charlotte, NC 28288
Phone: (704) 383-6315
E-mail: brett.smith@wachovia.com
Web site: www.wachovia.com
Officers: Ben Williams, Managing Director, Real Estate & Finance Services; Bill Green, Managing Director, Real Estate Capital Markets; Brett Smith, Managing Director, Mortgage Origination & Placement; Jim Pierpoint, VP/Corporate Communications
Financed in 2001: $4.1 billion

9 TIAA-CREF
730 Third Ave., New York, NY 10017
Phone: (212) 916-4476
Fax: (212) 916-6005
Officers: John H. Biggs, Chairman, President/CEO; Martin L. Leibowitz, Vice Chairman/Chief Investment Officer; Joseph W. Luik, Senior Managing Director, Mortgage & Real Estate; Claire Sheahan, External Affairs Officer
Financed in 2001: $3.7 billion
Lending goal for 2002: $3.3 billion

10 Berkshire Mortgage Finance
One Beacon St., 14th Floor, Boston, MA 02108
Phone: (617) 523-0066
Fax: (617) 556-1507
E-Mail: contactus@bmfloan.com
Web site: www.bmfloan.com
Officers: Peter Donovan, CEO; Ron Halpern, President/COO; Bryan L. Frazier, President, Irvine; Tom Szydlowski, President, Boston; Scott Suttle, President, Bethesda
Financed in 2001: $3.5 billion
Financed by Region:
Northeast: $750 million
Southeast: $327 million
Midwest: $940 million
Southwest: $208 million
West: $1.3 billion
Lending goal for 2002: $2.9 billion

11 ARCS Commercial Mortgage Co. LP
26901 Agoura Rd., Suite 200
Calabasas Hills, CA 91301
Phone: (800) ASK-ARCS
Fax: (818) 880-3330
E-Mail: info@arcscommercial.com
Web site: www.askarcs.com
Officers: Howard Levine, CEO; Tim White, COO; Holli Leon, SVP Production; Arthur Nissman, VP, Corporate Communications
Financed in 2001: $3.3 billion
Financed by Region:
Northeast: $530 million
Southeast: $450 million
Midwest: $220 million
Southwest: $370 million
West: $1.7 billion

12 PNC Real Estate Finance
249 Fifth Ave., 19th Floor, Pittsburgh, PA 15222
Phone: (800) 253-0005
Fax: (412) 768-5297
E-mail: realestateinfo@pnc.com
Web site: www.pncrealestatefinance.com
Officers: Andy Siwulec, President; Susanne Andres, Marketing Manager
Financed in 2001: $3.2 billion
Lending goal for 2002: $3.0 billion

13 National City Corp.
1900 E Ninth St., Cleveland, OH 44114
Phone: (216) 222-2332
Fax: (216) 222-9650
Officers: Kenneth M. Goetz, Exec. VP/Business Line Manager
Financed in 2001: $2.9 billion

14 Bear, Stearns & Co. Inc.
383 Madison Ave., New York, NY 10179
Phone: (212) 272-7918
Fax: (212) 272-7047
E-Mail: choeffel@bear.com
Web site: www.bearstearns.com
Officers: J. Christopher Hoeffel, Senior Managing Director; Jeff Taschler, Managing Director
Financed in 2001: $2.8 billion
Financed by Region:
Northeast: $1.1 billion
Southeast: $317 million
Midwest: $374 million
Southwest: $324 million
West: $698 million
Lending goal for 2002: $3.6 billion

15 Lend Lease Real Estate Investments
700 N. Pearl St., Suite 2400
Dallas, TX 75201
Phone: (214) 953-7923
Fax: (214) 953-7703
Web site: www.lendleaserei.com
Officers: Donnie M. Skidmore, President; Edward L. Hurley, Managing Principal; Boyd Johnson, Principal, Debt Advisory Group; Frank Creamer, Managing Principal
Financed in 2001: $2.4 billion

16 Key Commercial Real Estate*
127 Public Square
Cleveland, OH 44114
Phone: (888) KEY-2221
E-mail: george_emmons@keybank.com
Web site: www.key.com/cre
Officers: George Emmons, Exec. VP/National Manager; Kristine Cerny, Chief Administrative Officer/SVP; John Case, Sr. Managing Director/Key Commercial Mortgage; Laurie Masters, Marketing Manager/VP
Financed in 2001: $2 billion
Financed by Region:
Northeast: $263 million
Southeast: $407 million
Midwest: $435 million
Southwest: $417 million
West: $528 million
Lending goal for 2002: $2.7 billion

* The correct origination total should be $7.2 billion. The revised figure reflects data provided to NREI after publication.

17 GE Capital Real Estate
292 Long Ridge Rd., Stamford, CT 06927
Phone: (888) GE-FIRST
Fax: (203) 357-4475
Web site: www.gecapitalrealestate.com
Officers: Michael E. Pralle, President/CEO; Dan Smith, Managing Director, Principal Capital Group, North America; Joan Lavis, SVP Marketing
Financed in 2001: $1.9 billion
Financed by Region:
Northeast: $231.5 million
Southeast: $560.3 million
Midwest: $96.8 million
Southwest: $424.8 million
West: $575.6 million
Lending goal for 2002: $2.3 billion

18 Red Capital Group
150 E. Gay St., 22nd Floor
Columbus, OH 43215
Phone: (800) 837-5100
Fax: (614) 857-1660
E-mail: financing@redcapitalgroup.com
Web site: www.redcapitalgroup.com
Officers: Wm. E. Roberts, Chairman/CEO, Red Capital Group; David L. Goodman, Chairman/CEO, Red Mortgage Capital, Inc.; Linda L. Machov, Director
Financed in 2001: $1.8 billion

19 Credit Lyonnais
1301 Sixth Ave.
New York, NY 10019
Phone: (212) 261-7854
Fax: (212) 261-3830
E-Mail: jim.fitzgerald@clamericas.com
Officers: J. R. Fitzgerald, SVP; Ron Krolick, Managing Director; Jack Confusione, First VP
Financed in 2001: $1.4 billion
Financed by Region:
Northeast: $800 million
Southeast: $200 million
West: $400 million
International: $1 billion
Lending goal for 2002: $2 billion

20 Fremont Investment & Loan
175 N. Riverview Dr., Anaheim, CA 92808
Phone: (714) 283-6500
Fax: (714) 283-6555
Web site: www.1800fremont.com
Officers: Thomas Whitesell, SVP
Financed in 2001: $1.35 billion
Financed by Region:
Northeast: $360 million
Southeast: $100 million
Midwest: $160 million
Southwest: $85 million
West: $645 million

21 Capri Capital LP
1655 N. Fort Myer Dr., Arlington, VA 22209
Phone: (703) 243-5100
Fax: (703) 525-4323
E-mail: info@capricapital.com
Web site: www.capricap.com
Officers: Daryl J. Carter, Co-Chairman; Quintin E. Primo, Co-Chairman; Patrick J. Colliton, Exec. VP; Robert L. Moore, Jr., Vice Chairman
Financed in 2001: $1.3 billion
Lending goal for 2002: $1.2 billion

21 Wells Fargo Commercial Mortgage Group
45 Fremont St., 9th Floor
San Francisco, CA 94163
Phone: (415) 396-6616
Fax: (415) 975-7813
Web site: www.wellsfargo/cmg.com
Officers: Ed Blakey, Exec. VP/ Managing Director; Jim McDevitt, SVP, Origination Manager; Julie Forsythe, VP/ Director of Marketing
Financed in 2001: $1.3 billion
Financed by Region:
Northeast: $95.4 million
Southeast: $69.9 million
Midwest: $136.7 million
Southwest: $134.6 million
West: $855.5 million

23 American Property Financing
6 E. 43rd St., New York, NY 10017
Phone: (212) 850-4200
Fax: (212) 850-4216
Web site: www.apfmultifamily.com
Officers: Alan Wiener, Chairman; Art Habighorst, President
Financed in 2001: $1.2 billion

23 iStar Financial Inc.
1114 Avenue of the Americas
New York, NY 10036
Phone: (212) 930-9400
Fax: (212) 930-9455
E-mail: customers@istarfinancial.com
Web site: www.istarfinancial.com
Officers: Jay Sugarman, Chairman/CEO; Spencer B. Haber, President/CFO; Jeffrey R. Digel, Exec. VP/Investments; Roger M. Cozzi, Exec. VP/Investments; Andrew C. Richardson, SVP/Capital Markets; Lianne A. Merchant, VP/Marketing
Financed in 2001: $1.2 billion
Financed by Region:
Northeast: $271.5 million
Southeast: $279 million
Midwest: $147.7 million
Southwest: $312.1 million
West: $223.2 million

25 CDC Mortgage Capital Inc.
9 West 57th Street, New York, NY 10019
Phone: (212) 891-5700
Fax: (212) 891-5777
Web site: www.cdcmc.com
Officers: Brook Payner, Managing Director; Scott Zucker, Managing Director; Agna Brayshaw, Advertising and Marketing Coordinator
Financed in 2001: $1 billion
Financed by Region:
Northeast: $350 million
Southeast: $250 million
Midwest: $200 million
West: $200 million