NCB Announces Renewed Focus on Commercial Real Estate Lending


Washington, DC (February 7, 2008)
— NCB, a leading provider of financing to multi-family and commercial real estate properties nationwide, announced a recharged focus on commercial real estate lending at the MBAs annual Commercial Real Estate Finance (CREF)/Multifamily Housing Convention & Expo 2008 held February 3-6, 2008 in Orlando, Florida. NCB has renewed its commitment to the commercial real estate market by providing a portfolio lending product, a great option for many commercial borrowers in today’s more stringent financial marketplace.

“As lenders have been forced to pull back on conduit lending, borrowers are turning to traditional commercial mortgage sources, like NCB, that can provide portfolio lending,” stated Steven Brookner, President and CEO of NCB, FSB.

This year, NCB shifted from loans destined for the CMBS market to an “on-book” portfolio lending program. This flexibility has allowed the Bank to stay highly competitive in the commercial real estate market. NCB offers fixed rate loans from five- to seven-year terms with amortization periods up to 30 years, for all commercial property types.

Portfolio lending at NCB has great latitude in many respects including loan documentation, servicing, insurance requirements, and loan terms. There are no rigid requirements that are securitization driven.

“Perhaps the most attractive feature to our borrower is the flexible prepayment options,” Brookner explains. “On a typical seven-year fixed rate deal the prepayment schedule is five percent the first year, declining one percent per year, no defeasance and no yield maintenance. We will commit, close and rate lock transactions, and there are no material adverse change clauses in loan applications and commitments.”

In the last few months, NCB has closed a number of commercial real estate loans using our portfolio loan product, including:

  1. Applewood Grove Shopping Center, Golden, Colorado ($3,200,000)
    • 3-year term, 25-year amortization
    • Refinance of existing debt and excess funds for capital expenditures
    • 66,733 square foot, multi-tenant retail facility
  2. Greenwich-Desbrosses Realty, New York, New York ($1,000,000)
    • 18-month term, interest only
    • Refinance and building upgrades
    • 5,660 square foot, fractured condominium ownership
  3. Abbey Square Apartments, Richmond, Virginia ($1,925,000)
    • 5-year term, 30-year amortization
    • Refinance of a 54-unit apartment complex
  4. Varina Station, Fuquay-Varina, Northa Carolina ($2,175,000)
    • 7-year term, 30-year amortization
    • 18,670 square foot, mixed use property
    • 100 percent leased
    • Loan closed within 45 days

And these borrowers are not alone. During 2007 NCB’s commercial lending team originated over $254 million in financing. “At NCB, our real estate lending philosophy is reinforced by personalized attention and the desire to craft the loan structure that precisely meets our customer’s business strategy,” Brookner adds. “And because we are a rated master/primary/special servicer and service all of our loans, you can count on NCB to stay with our borrowers for the life of the loan, providing a stable relationship over time.”

For more information about NCB’s commercial real estate portfolio lending program, contact Casey Fannon at (703) 302-1917.

NCB Financial Group (NCB) consists of National Consumer Cooperative Bank, a wholesale funding company; NCB, FSB, a federally-charted savings bank; and, NCB Capital Impact, a 501(c)3 nonprofit.  Loans and other financial services are provided by NCB, FSB and NCB Capital Impact.   Deposit products and services are provided by NCB, FSB, which is a member FDIC.   Each is a separate corporation within the NCB Financial Group.

NCB is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. Headquartered in Washington, DC, NCB also has offices in Alaska, California, New York and Virginia. In addition, NCB has a growing community banking network in southwestern Ohio. To learn more about NCB, visit www.ncb.coop.