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May 31, 2024
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Wells Fargo has a group called real estate merchant banking "REMB" that does this type of opportunistic debt/equity investments.
Thanks. Any thoughts on their reputation?
what is the size of the deal? Also, WFC REMB is pretty active.
In the CMBS conduit world the big banks originate most of the debt stack. They leave the senior loans (and b-piece or pari passu) in the deal(s) and sell off the mezz to smaller investors. Sometimes they'll hold it. Usually pari passu and b-piece debt is packaged in subsequent deals.
To answer your question, I see all of the big banks do this (JPM, WF, GS, BoA, etc.), they just originate it and sell it off more often than not. There are also plethora of smaller mezz lenders (30+?) who originate for CMBS deals.
Unfortunately, I can't give any color on which areas of the shops do what. PM if you have any more specific questions, I can try to help.
I've noticed mezz & preferred equity have both come back strong in the past three quarters.
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