The Real Estate Finance Group has extensive experience in the co-investment and syndication of commercial real estate loans. Since 1999, Babson Capital has sold third party co-investments/syndications of $3.70 billion across 119 mortgage transactions with a total capitalization of $7.21 billion.1 The purchasers of these commercial real estate loans include insurance companies, domestic and foreign banks, and government agencies.
Why We Co-invest/Syndicate
Babson Capital, on behalf of its largest client, Massachusetts Mutual Life Insurance Company (“MassMutual”), manages credit exposure to single assets, borrowers, property types, geographic locations or a combination of the afore mentioned. Co-investing/syndicating provides Babson Capital the opportunity to manage these exposures, thus allowing MassMutual to remain active in the commercial real estate debt market.
Servicing the Co-investment/Syndication
Babson Capital has a well-recognized loan servicing platform which has consistently maintained high ratings from Fitch and Standard & Poors2 and is staffed with experienced investment professionals having an average 16 years of servicing experience. In addition, these servicing professionals have been part of the Babson Capital team an average of 10 years3. Babson Capital’s servicing professionals have the experience, knowledge, and commitment to provide its investors with high-quality servicing capabilities.
What Babson Capital Offers Co-investment/Syndication Investors
There are a number of reasons to consider a Babson Capital sponsored co-investments/syndications:
- Established brand
- Full service national origination capabilities allowing Babson Capital to efficiently and effectively secure investment opportunities
- Access to larger and higher quality transactions
- Access to larger and better capitalized borrowers
- Experienced investment and servicing professionals
- Standardized due diligence, origination and servicing protocols through Babson Capital’s array of in-house expertise to evaluate and monitor commercial real estate loans
1. As of March 31, 2009
2. Fitch Rating of “CSS2” for Special Servicing and “CSP2” for Primary Servicing, effective May 2008. Standard & Poor’s Rating of “Above Average” for Commercial Loan Servicing, and Commercial Servicing, effective December 2008; despite affirming the Above Average ranking for mortgage special servicing, Standard and Poor’s assigned a Negative Outlook to that ranking, reflecting “a diminished level of troubled loan management activity and corresponding recovery data during the past 18 months.”
3. As of April 1, 2009