It's been a wild ride for Wall Street, and that includes those firms (not necessarily actually hanging shingles on the Street) who manage CMBS and underwrite REITs. So far this year, CMBS volume is up more than 250% over the first half of 1997, and almost $23 billion more has been slated for the third quarter. During the first six months of 1998, REIT financings are up over first-half 1997, too.

On the following pages, with the help of Commercial Mortgage Alert, we outline which firms were most active during the first half of 1998 in the CMBS and REIT arenas. Along with the rankings are miniprofiles of some of the most active firms.

Topping the lists on the CMBS side, Morgan Stanley is No. 1 lead manager, with nine deals totaling $9.3 billion, as well as No. 1 on the ranking of lead- and co-managers, with 12 deals totaling $13.4 billion.

Morgan Stanley also comes in as the No. 2 investment bank in unsecured REIT financings and unsecured REIT debt and as the No. 3 agent for REIT medium-term notes.

Merrill Lynch leads the pack in REIT financing, ranking No. 1 with $4.7 million of unsecured REIT financing overall and No. 1 in terms of unsecured REIT debt (14 deals totaling $3.6 billion as lead manager, and 21 deals totaling $5.4 billion as lead- and co-manager).

Merrill Lynch also came in second in the ranking of CMBS lead- and co-managers, with $10 billion issued during the first half.

Another powerhouse, Lehman Brothers did top the list of agents for REIT medium-term notes, with $210 million during the first half of 1998. And the firm ranked second on the list of CMBS lead managers, with 8.5 deals totaling more than $8 billion during the first half of the year. o

Bear Stearns, 245 Park Avenue New York, NY 10167 212-272-2000, FAX: 212-272-3092

Bear Stearns has rapidly emerged as one of the leading investment banks to the real estate industry, providing comprehensive investment banking, capital markets and advisory services.

The company moved slowly into commercial mortgage backed securities, doing only $465.8 million last year. This year, however, Bear Stearns has already been lead manager on $1 billion of CMBS and expects to do $2 billion before the year is out. The company's investment banking group draws on Bear Stearns' debt and equity trading, sales, contract finance and research capabilities to deliver a broad range of products. About two years ago, the company centralized its real estate investment banking business into the Real Estate, Gaming, Lodging and Leisure Investment Banking Group (REGAL).

REGAL has been royally active advising on the buy-side of the $13.8 billion Starwood Lodging Trust-ITT Corp. merger, $322 million hotel portfolio sale involving Sunstone Hotel Investors and Kahler Realty Corp., $420 million Colony-Harveys deal, and $990 million Equity-RFS acquisition. On the sell side, Bear Stearns advised on the $1.8 billion Blackstone Group-Host Marriott transaction, $485 million Patriot American Hospitality-Carnival Hotel & Casinos-Gencom American transaction, $600 million CAPREIT-Equity Residential Properties Trust deal, $360 million Mark Centers Trust-Arcadia merger, $513 million Servico-Impac Hotel Group combination, and $132 million Prime Hospitality-Homegate Hospitality merger. The company was also lead manager on a $288 million convertible preferred offering and a $150 million unsecured notes offering for Glenborough Realty Trust Inc.; $110 million convertible TIPS and $105 million concurrent follow-on equity offering for Central Parking; and $120 million high-yield, debt offering for Hard Rock Cafes.

Key REGAL personnel include Thomas Flexner, senior managing director and such managing directors as Keith Locker, Brent Bickett, Thomas Harney, Lawrence Henry, George Kallop, Ralph Rose and John Waldron. James Reichek, senior managing director, and Christopher Hoeffel, managing director, are key staff for the Commercial Mortgage Group.

BT Alex. Brown Inc., 130 Liberty Street New York, NY 10006 212-250-2361, FAX 212-669-0752, www.bankerstrust.com

The merger of Bankers Trust and Alex. Brown took place last September resulting in a new name and a strong commitment to such real estate investment banking activities such as debt equity, mergers and acquisition, financial advisory, direct investment, investment management, risk management and trading and positioning.

The company prides itself on its experienced personnel, integration of finance across capital structures (bank, bond and equity), ranking as a leader in all major products and services (No. 2 in leveraged lending, No. 4 in equity, and No. 5 in high yield debt, M&A, risk management and direct investment) and its global presence with dedicated real estate investment professionals in 11 cities around the globe.

Among the company's many deals this year were: led consortium in acquiring a major stake in ISM, a French public company controlling $2 billion in real estate; led consortium in acquiring $2 billion portfolio of sub-performing mortgages from Japanese financial institution; made direct investment in a Polish real estate developer; was arranger and administrative agent for a $3 billion bank financing for Starwood Lodging/ITT; advised FelCor on a $1.8 billion acquisition of 100 hotels from Bristol Hotel Co.; arranged a $1 billion credit facility for MeriStar Hospitality Corp.; arranger and administrative agent for a Cornerstone Properties $350 million revolving credit facility.

As noted, some of BT Alex Brown's deals have been international in scope. As Richard Gunthel, senior managing director and head of Real Estate Investment Banking notes, "we have long held that opportunities always exist in real estate - they just might not exist in your own backyard." Other key players at BT Alex Brown are managing directors Paul Turovsky, Robert Blumenthal, Jacques Brand, David Brush, Robert Cavanaugh, Howard Guja, Kent Jewett, Robert Kent, George Kountouris, Ian Marcus, Kurt Roeloffs, Peter Tesche and Gary Wilder.

Capital America (formerly Nomura Capital), 101 California Street, Suite 4080 San Francisco, CA 94111 415-743-2000, 415-743-2001

Capital America was formed in June 1998 from Nomura Capital, a subsidiary of Nomura Holdings America. Although it has a new name, the now West Coast-based company has a solid history in real estate lending. In 1993, Nomura Holdings hired Ethan Penner to create and head a real estate financing unit which that year securitized some $2.3 billion in mortgages. That total grew last year to $9.3 billion.

Originally, Capital America was organized by sectors, i.e., hotel, multifamily, etc., but within the past 12 months, the company re-organized into regional teams with offices in New York, Miami, Chicago, San Francisco, Los Angeles and Dallas. The company's Securitization Group securitizes all its own loans (it doesn't buy from others), holding them on it books until a suitable amount has been gathered to pool into an offering. Since Capital America funds as a principal, it can commit rapidly to a borrower. It likes to say its motto is "speed, size and certainty" meaning a borrower will get a quick response, the amount needed (company funds anything over $1 million) and the knowledge that Capital America will stand by its quote. Apparently it all has worked, because, as usual, 1998 has been a busy year. So far this year, Capital America did a $2.06 billion FASIT securitization in January, a $3.3. billion securitization in March, and a $316 million FASIT upsizing in May.

The company reports the trend line of next 12 months will be marked by stable prices and small appreciation in rents. As for CMBS? Spreads have been widening, but reflecting the efficiency of the market, the industry remains stable.

Key personnel at Capital America include Mike Berman, chairman; Ethan Penner, president & CEO; Boyd Fellows, co-chief operating officer; Brian Pilcher, co-chief operating officer; Kathy Corton, senior managing director; and Stew Ward, senior managing director.

Credit Suisse First Boston, 11 Madison Avenue New York, NY 10010 212-325-2131, FAX 212-325-8185, andy.stone@csfb.com 212-325-2439, FAX 212-325-8160, bill.adamski@csfb.com

Like most Wall Street investment banks, Credit Suisse First Boston has been doing a booming business on the equity and debt side of the real estate business. Its real estate group's strong points are financial strength and flexibility.

On the debt side, its strong points might be the company's come-from-behind ability. After completing no deals in the first quarter, Credit Suisse First Boston jumped into third place for mid-year rankings of commercial mortgage backed securities lead managers. The investment bank priced two deals valued at $4.8 billion, plus privately issued $4 billion of securities that was not counted in the rankings because the bonds were unrated.

On the equity side, key deals included $344 million interim financing on an office property for a company called Solana, $350 million for a hotel acquisition by Grand Wallea and $132 million acquisition financing for Gotham Hotel Portfolio on a parcel of hotels.

Credit Suisse First Boston is unabashedly optimistic about the real estate market going forward. Trend line for the next year, outlook for CMBS and outlook for REITs are all rated "excellent" by the company.

Important personnel in real estate investment banking at Credit Suisse First Boston include: Andrew Stone, managing director; William Adamski, managing director; Mark Finerman, managing director; and Susan Antoniou, assistant vice president.

Goldman Sachs & Co., 85 Broad Street New York, NY 10004 212-902-1000, FAX 212-357-5505

The big news at Goldman Sachs & Co. this year has been the vote by partners to take the company public and eliminate the firm's 129-year partnership structure. But, that shouldn't affect the venerable investment banking house's real estate work. Goldman's Real Estate Department in its Investment Banking Division can muster all of the parent company's resources to provide global, full-service investment banking coverage to the leading real estate investment trusts and real estate companies. The Real Estate Department's areas of expertise include: real estate corporate finance activities, hospitality and gaming corporate finance activities, asset sales, mergers and strategic advisory assignments and commercial mortgage origination.

Under the auspices of real estate corporate finance, the company provides investment banking services to leading REITs and non-REIT real estate companies including equity and debt capital markets, mergers, assets sales and strategic advisory assignments. Goldman was lead manager on over $6 billion of equity and debt financing in 1997 and over $1.5 billion so far this year. Some of Goldman's major deals in the past 18 months include a $413 million overnight common stock offering for Vornado Realty Trust, which was the largest overnight common stock offering for a REIT to date, and an $800 million follow-on offering for Boston Properties, the largest follow-on offering executed for a REIT. In the hospitality and gaming pits, Goldman was involved in over $20 billion of transactions last year. In 1997, Goldman was the lead banker in 18 transactions totaling over $25 billion in asset sales and mergers and this year is shaping up to be an even better year. In addition to all that, the company provides fixed and floating rate mortgage financing secured by individual properties or cross- collateralized pools for large loans. Goldman originated over $5 billion in loans last year and over $4.4 billion so far this year.

Goldman Real Estate Department officers are: Mark Tercek, managing director and department head, and managing directors, John Barakat, Mark Ettenger, Richard Lieb and Sheridan Schechner.

J.P. Morgan, 60 Wall Street, 30th Floor New York, NY 10260-0060 212-483-2323, FAX 212-648-5046

Back in 1970, the J.P. Morgan Real Estate Investment Banking group was carved out of J.P. Morgan's investment banking operation and today it's busier than ever doing strategic advisory work, mergers and acquisitions, debt and equity capital markets, loan capital markets and derivatives. The company also boasts a commercial mortgage backed securities group which is run as a separate and independent unit. It too has been quite active.

Through the first half of the year, J.P. Morgan has been lead manager on $936.4 million in CMBS and has on tap another $1 billion securitization and an additional $600 million in underwriting for the third quarter. On the investment banking side, so far this year J.P. Morgan acted as lead manager for $172.5 million of common stock for Cabot Industrial Trust, $500 million of unsecured real estate bond issuances (three tranches) for Security Capital Group, and $475 million of unsecured real estate bond issuances (two tranches) for Equity Office Properties.

J.P. Morgan also has had a red hot year in mergers and acquisitions. The company provided advisory services and fairness opinion to Corporate Property Investors Inc. on a pending $5.8 billion merger with Simon DeBartolo Group; provided advisory services and a fairness opinion to Equity Residential on the pending $2.2 billion merger with Merry Land and Investment Co.; advised TrizecHahn on the sale of its $2.55 billion retail portfolio to The Rouse Co. and Westfield America Inc.; advised Highwoods Properties on the $544 million acquisition of J.C. Nichols; advised RoProperty Services on its acquisition of The RREEF Funds; and advised Malaya conglomerate Sime Darby Berhad on the sale of its U.S. subsidiary Sandestin Resorts.

Key personnel include Jon Zehner, managing director and head of Global Real Estate and Lodging Investment Banking; Dennis Lopez, managing director and head of European Real Estate and Lodging Investment Banking; Charles Lowrey, managing director and head of North American Real Estate and Lodging Investment Banking; and Michael Jungman, managing director and head of Commercial Mortgage Finance Group.

Lehman Brothers, 3 World Financial Center New York, NY 10285 212-526-3484, 212-526-5173, cosent@lehman.com

At Lehman Brothers, real estate cuts across the three major businesses of the firm, investment banking, fixed income and equity. Each of the businesses work in partnership to provide clients seamless service and Lehman with a broad range of opportunities. The company divides its real estate practice into three areas: traditional investmentbanking functions, commercial mortgage backed securities and principal transactions.

Lehman has been the No. 1 CMBS underwriter since 1994, and it claims unparalleled research and distribution capabilities. The company is also a leading player in the REIT market and has a very successful proprietary real estate investment program.

A specialty of Lehman has been the financing of regional malls. Since 1997, Lehman has provided over $2.1 billion in financing including such projects as: $170 million for Water Tower Place, a Heitman and Urban Shopping Center property; $140 million for Dadeland Mall, owned by Simon DeBartolo and Equitable; $225 million for regional malls owned by the Prime Property Group; and financing for Glimcher Realty Trust's acquisition of Montgomery Mall and General Growth Properties' $613 million acquisition of the MEPC portfolio and the $392 million USPPI portfolio. Lehman was also lead manager on the following transactions: AIMCO/Freddie Mac's $32 million and $60 million pool of non-crossed properties; SASCO's $170 million of floating rate loans and $1.5 billion securitization of large balance, floating rate loans; LB Commercial Mortgage Trust's $1.7 billion of fixed rate loans; SMA Finance Co's $225 million of fixed rate loans; GMAC Commercial Mortgage Securities' $1.4 billion of fixed rate loans; and $3.4 billion securitization of fixed loans from Lehman, First Union and Bank of America.

Key personnel include Michael Mazzei, managing director and head of CMBS Banking Group; Raymond Mikulich, managing director and head of Real Estate & Mortgage Industries Group; and Mark Walsh, managing director and head of the Commercial Real Estate Principal Transactions Group.

Merrill Lynch & Co., 250 Vessey St. New York, NY 10281 212-449-4700, FAX: 212-449-7165

Richard Saltzman is managing director and group head.

Morgan Stanley Dean Witter, 1585 Broadway, 37th Floor New York, NY 10036 212-761-4700, 212-761-0510, MS.com

Morgan Stanley Dean Witter has provided a broad range of services to the real estate industry for nearly 30 years. Today, Morgan Stanley Realty is comprised of three major business units, each focused on a specific segment of the investment bank's real estate practice: Real Estate Investment Banking, Real Estate Debt Capital Markets and The Morgan Stanley Real Estate Funds.

Morgan Stanley Realty's objective is to help real estate clients and investors manage and benefit from the increasing complexity and diversity of financing and strategic and investment options. As such, the company is active in all the various real estate capital markets - public equity, secured debt, unsecured debt, convertible instruments, and is capable in all types of transactions, financing, mergers, acquisitions, restructurings, assets sales and recapitalizations.

So far, 1998 has been a good year for the company. In the first half of 1998, Morgan Stanley ranked as the leading underwriter of commercial mortgage backed securities with nearly $10 billion in CMBS offerings. The company was also a leading real estate lender having provided over $4 billion in commercial mortgages. Morgan Stanley was financial advisor on such deals as: New Plan Realty Trust on its merger with Excel Realty; Merry Land & Investment Co. on its merger with Equity Residential Properties; Security Capital Atlantic on its merger with Security Capital Pacific Trust; Bay Apartment Communities on its merger with Avalon Properties; and Bass Plc on its acquisition of Inter-Continental Hotels & Resorts.

Among its capital raising transactions, Morgan Stanley was lead manager on: a $408 million common stock offering for St. Joe Corp.; $92 common million stock offering for Burnham Pacific Properties; $200 million senior note offering for Highwoods Properties; $239 million CMBS offering for Allied Capital Commercial; and $142 million CMBS offering for Mid-America Apartment Communities.

Some of Morgan Stanley Realty's key personnel include William Lewis, managing director and co-head of Real Estate; William Smith, managing director and co-head of real estate; Owen Thomas, managing director of Morgan Stanley Real Estate Funds; and John Westerfield, managing director of Real Estate Debt Capital Markets group.

PaineWebber Inc., Commercial Real Estate Division 1285 Avenue of the Americas 19th Floor 212-713-7900, FAX: 212-713-7949 www.painewebber.com

The Commercial Real Estate Division of PaineWebber Inc. was formally established back in 1989, but the company has been doing real estate financing since 1985 and commercial mortgage securitization since 1988. PaineWebber's real estate group continues to be busy. So far this year it helped Patriot American Hospitality Inc. acquire Interstate Hotels Co. and Wyndham Hotel Corp., and arranged (with Chase Manhattan Bank) a $2.7 billion credit facility for Patriot American/Wyndham International. It also helped arrange the merger of Avalon Properties and Bay Apartment Communities Inc.

Financing also has been a busy activity for the Commercial Real Estate Division. Among the many deals this year were: a $56.8 million common equity offering for Chateau Communities Inc., $110 million in notes for Avalon Properties, $150 million in senior notes for Bay Apartment Communities, $100 million in senior notes for Avalon Bay Communities, $100 million in senior notes for Gables Realty Ltd. Partnership, $66.2 million Parkway preferred stock offering and $43.1 million EastGroup Properties Inc. preferred stock offering.

In an interesting deal, PaineWebber formed a joint venture with Merchant Equity Financial Group to purchase and securitize triple net-lease properties.

The company remains bullish on real state as it expects demand to continue to outpace supply in all major property sectors, the conduit origination business to continue to grow in total dollar volume and as a percentage of the CMBS market, and after a difficult first half of the year, the REIT market to improve as well.

Co-heading the division, which operates as an integrated unit, are Terrence Fancher and Jack Taylor, managing directors. Fancher is directly responsible for the company's merchant banking activities and the strategic direction of real estate investment banking. Reporting to him are managing directors Frederick Craven and David Jarvis. Taylor is responsible for the strategic and day-to-day management of PaineWebber's CMBS trading and all debt and mezzanine lending activities. Reporting directly to him are managing directors: Fernando Mendez in Trading, Steven Plust in Bond Structuring and Ronald Wechsler in Conduit Programs.

Prudential Securities Inc., New York Plaza, 18th Floor New York, NY 10292 212-778-1977, FAX: 212-778-3194

The Real Estate Group at Prudential Securities Inc. has chalked up some impressive numbers over the years. Since 1992, the Real Estate Group has raised over $24 billion in equity for REITs and has ranked in the top five in co-managed equity offerings for the past two years. The company's strengths include financial advisory work, mergers and acquisitions and public and private debt. Prudential Securities is currently expanding its advisory work through focus units in hospitality and healthcare.

Last year was a particularly active one for Prudential. In 1997, the company's lead management business totaled $2.1 billion, ranking it number three. Also, in 1997, Prudential Securities ranked in the top five in mergers and acquisitions. Its largest leading equity offering to date was Cali Realty Corp. for $517 million last October.

In some regards, 1998 might be an even busier one for the company. Prudential Securities was the lead manager on a $255 million initial public offering for LaSalle Hotel Properties. It also supplied a $48 million bridge loan to the company. Other deals included: lead manager on a $216 million IPO for Philips International Realty Corp. and extending a $100 million line of credit to the company; sole manager on a $96 million spot offering for Mack-Cali Realty Corp. and acted as its financial advisor in the company's acquisition of Pacifica Holding Co.; lead manager on a $201 million spot offering for Equity Residential Properties Trust; acted as financial advisor on Excel Realty Trust's merger with New Plan Realty Trust; and acted as financial advisor on the cash sale of Meridian Point Realty Trust VIII Co. to Eastgroup Properties for $100 million.

Key personnel at Prudential includes Richard Schoninger, managing director and Group Head; managing directors Jeffrey Crossland, Allen Ostroff and Peter Riemenscheider; and directors William Daly, Fuller O'Connor, Scott Schaevitz and Chris Slavin.

Salomon Smith Barney, 388 Greenwich Street New York, NY 10013 212-816-8248, FAX: 212-816-7491 mark.patterson@ssm.com 212-816-8408, FAX: 212-816-8558 david.sherman@ssmb.com

Salomon Smith Barney, the big investment banking firm, is certainly no stranger to merger activity, but the announcement earlier this year that its parent company, Travelers Group, would combine with Citicorp in an $82 billion deal certainly shook the rafters of the financial industry. Regardless of what goes on at the top, Salomon Smith Barney, which has had a presence in the real estate sector for decades, could boast a few, recent eye-opening deals of its own. Some of its major merger deals this year include the sale of Inter-Continental chain to Bass P/C for $2.9 billion; acquisition of Layton Belling Associates by Arden Realty for $615 million; and the pending sale of RFS Hotels to Equity Inns (no price announced), La Quinta to Meditrust for $3 billion, Station Casino to Crescent (no price announced) and the $1.5 billion merger of American General Hospitality and Capstar.

The company not only affects mergers and acquisitions, but also has been active in raising money for REITs and other real estate companies. Among its major issuances this year was a $240 million common stock offering for Brandywine Realty, $125 million-$75 million First Industrial preferred stock deal, $100 million AIMCO preferred stock offering, $150 million Excel Realty preferred stock deal and $54 million Resortquest common stock offering.

Even before the pending merger with Citicorp takes effect, Salomon Smith Barney claims its real estate group's strength is its ability to do full service real estate from a global perspective. The trend line for the remainder of the year, says Salomon Smith Barney is stable occupancy levels and healthy growth in NOI for most national markets. As for REITs, the company has put an "outperform rating" on the sector and believes that the stocks are attractive for investors seeking income and moderate growth.

Key personnel for Salomon Smith Barney's Real Estate Investment Banking group are managing directors Mark Patterson, Jeff Horowitz, Joseph Gallo, Joseph Doyle and John Herbert, and directors Harry Mizrahi, Paul Ingrassia, Tom Cook, Doug Sesler and Mark Davis.